BUSINESS STRATEGY (PM1006)

DANGOTE GROUP OF COMPANIES

This assignment will focus on Dangote group of company, which produce various goods and services/products in Nigeria. Which includes salt, rice, cement, noodles oil and gas,pasta,flour,etc.The name Dangote group of company was laid down in the late 1970s.it started with ALCO international limited. But subsequently the Dangote group of company was incorporated in 1980s into the company and allied matters act. by ALhaji Alake dangote, who is currently the chairman and CEO of the company. when the company was formed, It only focused on cement manufacturing, but with time diversified into many other manufacturing services.

“DANGOTE cement Emerges Nigeria Biggest Quoted Company.” By okey Nwankwo. The e-newsletter of the Dangote group.( 2011)Today Dangote group of company has grown to be one of the biggest companies in Africa, because it has its branch almost in all Africa countries, the company grew because of its excellent and quality of its goods and services to its customers. the company has it’s headquarter located in Lagos Nigeria. Dangote is a graduate of business studies from the Al Zahra University Cairo Egypt. Aliko ventured into business in 1977, when the only thing he could produce then was sugar, rice, and cement. But with time and determination he ventured into other business services like salt, noodles, water, telecom, oil and gas, and so many other businesses as well. (DANGOTE,2011).

Here are some of the ways in which the company has evolve and developed within the years. .Alhaji aliko Dangote began business in 1970s, when the only thing he could do was trading in building materials and commodities, he then moved his business to lagos in june 1977 and still continue with the cement trading, encouraged by tremendous success in business he incorporated two companies in 1980s, before all these others that also make up the group.

Dangote group of company which was only able to produce salt, cement, and rice when it newly began, with over time diversified into many other services through been focused by providing the local needs of the country population like Nigeria. Also the company has moved forward over the years by developing a strong distribution network which then makes the distribution of goods and services faster than that of other competitors in business. Example the group of company was licensed third generation ( 3G) carrier services by the federal government of Nigeria, which then allows the group to provide wireless services. In addition, the group grew by embarking on haulage business. The haulage business started with 600 trucks under the company transport. Also the company have moved stronger and succeeded through strategic merger and acquisitions. For instance when it merged with its sister company Benue Cement Company Nigeria in 2000 from the Nigeria government which produces 3.0 million MT of production capacity per annum and also when it gained the assets of Oshogbo steel rolling mill, which has a production capacity of 400.00 MT per annum. the company has developed through entrepreneurship. Example, the willingness to undertake organization, and management of a productive venture with all attendant risks while seeking profit as a reward. The group of company has developed by always seeking on how to develop new business and methods to retain their market leadership, for example, the company decided to move the business forward when it visited Brazil and saw the emerging manufacturing sector .which helped the group in deciding to move a trading business into a full manufacturing operation. Further more, the group of company provides a freight services to the members of the group that helps in the transportation of raw materials and distribution of finished goods. The group has moved forward through their leadership styles, by being leaders in their own business through partnership and professionalism. Also by often relating with people that possess different personality traits and knowing how to handle issues with them. Also by having a strong mission statement which is to provide the basic needs of 150 million Nigerians .and By so doing has recorded a turnover of 3.billon us dollars in 2010.Also the packaging of the companys product has helped in its growth, the group which produce environmental friendly poly bags which is majorly for the internal consumption of the company, for the packing of its product like cement, flour, salt, sugar etc. And the company noodles which has metallic packaging that is recognised for its quality by the National Agency for food drug administration and control(NAFDAC)Nigeria. The group is involved in diverse forms of business manufacturing with high turnover. Example the Dangote textile and the Nigeria textile mills plc which it acquired. produces over 120,000 meters of finished textile daily. The 12,000 staff strength nation wide also helps in the growth of the company. The group excellent business practice has really moved the business forward.

THE GLOBAL PERSPECTIVE WITHIN WHICH THE BUSINESS OPERATES AND HOW THIS HAS AFFECTED THE COMPANY’S SUPPLYCHAIN,VALUE CHAIN,AND OTHER RELEVANT STRATEGIC DECISIONS TAKEN

How globalization has affected the company supply chain. globalization has helped the group of companies positively, the company because of globalization, the number of countries where their product can be sold has increased dramatically. For example the group operates in 14 African countries which include Senegal, Zambia, Tanzania, south Africa, Congo, Ethiopia, among others. In all these African countries the group products can be found there. Globalization has helped the group in terms of competitiveness, for example, the group has provided a haulage business which helps in the transportation of raw materials used in the industry and also helps in the distribution of their finished goods. Globalization has helped the group technologically, Dangote group of company now makes use of 3G third generation license by the federal government of Nigeria in 2007, and it now allows the company to provide carrier and wireless service.(http;//www.dangote group.com).

In conclusion, Dangote group of company has grown tremendously from its very humble begining to a very big and diversified business, through commitment in their words stipulated in their mission and vision, which the group have carried out without looking back which has brought the business to where it’s today .and also to the issue of globalization which has really worked positively for the organization.as it can be seen, globalization has brought so many changes and growth to the company, the group some years back started as a one man business, but with determination and other global factors has risen to a greater height and is still moving on to achieve other things and to expand the organization. The group of company when looked at can be seen with some factors that has really helped it to grow over the years, example includes; merger and acquisition, through their excellent and quality of its good and services, by being involved in diversified forms of business. The group of companies succeeded by spanning across many sectors of the Nigeria economy, from manufacturing, transportation, food and beverages, and recently oil and gas.etc. The group of company today has grown to be much diversified and has four of its company quoted on the Nigerian stock exchange.(NSE).which includes, Dangote flourmills, Dangote cement, Dangote sugar refinery, national salt company of Nigeria. And also by their excellent service, always working together as a team to deliver best products. Their customer service has helped the group of company by always satisfying their customers through quality goods and delivery, and most importantly their leadership style, which involves partnership and professionalism.

“Success in business requires training and discipline, and hardwork.but if you are not frightened by these things; the opportunities are just as great today as they ever were” Rockefeller.

REFRENCE

DANGOTE, 2011 Company Overview [online] Available at http://www.dangote-group.com/aboutus/companyoverview.aspx (Accessed on 18-10-2011)