Strategy in the International Enveronment Essay

Strategy in the International Enveronment - Essay Example The study will also look to prepare a business plan for the proposed business. Population of Lagos In order to properly recognise the demographic factors prevalent in Lagos the population of the area will be evaluated. Lagos is a small state in Nigeria. It is one of the highest populated areas in Nigeria which contributes about 5% of national estimate. The population of Lagos was 17 million in the year 2006. The growth rate of population is approximately 6, 00,000 per annum and the population density is about 4,193 ‘persons per square kilometre’. UN (United Nations) estimates that if this growth rate continues then by the year 2015 Lagos will turn out to be the ‘third largest mega city’ in the whole world after Tokyo, the capital of Japan and Mumbai in India. 85% population of Lagos is in metropolitan area and only 37% population is in ‘land area’ of Lagos. According to World Bank’s demographic analysis the growth rate of Lagos was 8% in the year 1996 and in Nigeria the growth rate was 36.8%. That means population of Lagos is increasing ten times quicker as compared to New York as well as Los Angeles (Lagos State Government, 2011). Statistics of People with High Disposable Income The real GDP growth rate of Nigeria was recorded at 7.4% in the year 2010 and annual gross income of people was approximately 130,095.4 USD. The annual disposable income of people of Nigeria was 115,976.9 USD in the year 2010 thus the purchasing power of people on that period was 356,475.9 USD. The following table shows that people’s purchasing power and disposable income has been increasing since the year 2007 (Euromonitor, 2011). Year GDP Measured at Purchasing Power (Million international $) Annual Disposable Income (Million USD) 2007 292,409.20 97,329.80 2008 310,743.60 113,613.30 2009 328,915.70 101,762.00 2010 356,475.90 115,976.90 2011 387,999.60 117,355.00 Source: (Euromonitor, 2011). According to report of 2006, less than ha lf of the households are employed. The average unemployed persons per household were less than 3. It reveals that there were more unemployed persons in the household than employed. From the perspective of household heads almost 92.6% was employed and 0.8% was unemployed. House heads earn more than their spouses and other members of household. The number of spouses and other household member in the income group between 10,000 ? to 30,000 ? is higher than household heads. In this income group, the proportion of household head was only 34.3% compared to proportion of spouse which was 61.7%, and other household member’s proportion was between 67.9 % - 80.9%. Proportion of household head whose income level was 90,000 ? and above was 8% and spouse’s proportion was only 2% (Lamata, 2005). Average household income of Household Member (in %) Average Monthly Income (in ?) Household Head (%) Spouse of Head (%) 10000 – 30000 34.3 61.5 30001 –