QUESTION 1 Lagos Textile Manufacturing Limited (LTML) was incorporated in 2010 and has grown to become one of the leading textile producers in South-West Nigeria. The Board of Directors recently commissioned a strategic review following a significant decline in sales revenue. The Managing Director, Mr. Adeyemi Bello, attributed the decline to changes in the external business environment, including the rising cost of imported raw materials due to naira depreciation, increasing competition from cheaper Asian imports, and the recent Federal Government policy banning the importation of certain textile goods. The Board is scheduled to hold a strategy retreat next month, and the Company Secretary has been asked to prepare a briefing paper on the business environment. Required: (a) Explain the concept of 'business environment' and distinguish between the micro-environment and the macro-environment of a business, using examples relevant to LTML. (8 marks) (b) Using the PESTEL framework, analyse FOUR factors from the macro-environment that are currently affecting LTML's operations. (8 marks) (c) Advise the Board of LTML on TWO strategic responses it could adopt to address the challenges identified in (b) above. (4 marks) Total: 20 marks