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The Dangote organization is a Nigerian multinational industrial conglomerate company, founded by aliko dangote in Nigeria in year 1981 as a trading company, importing sugar, cement, fisheries and other consumer goods for distribution in Nigerian market. The organization went in to manufacturing in the 1990, starting with textile industry, flour milling industry, salt processing industry and sugar refining industry. The Dangote group then moved into cement production growing rapidly in Africa. The group now produces cement, sugar, salt, flour, steel, oil and gas, packaging. Its headquarters is in Lagos Nigeria. The organization handles in over 18 subsidiaries, operating in African countries. The president Aliko Dangote has said the group is going to generate a revenue of 30 billion Dollars by 2020 due to the organization oil refinery opening in 2020 the biggest refinery in Africa. The company has more than 30,000 workers.
The Dangote Group Organizational Structure
The Dangote organizational structure is headed by the CEO who heads responsibilities such as making corporate decisions, heading operations and managing the resources of the organization.
- There is the director strategy and business development who handles: new business development, feasibility studies and market opportunity assessment.
- There is the Group head internal audit who handles: technical audit.
- There is the general counsel who handles: support to the group corporate affairs and group development.
- There is the Group chief operation officer who handles: marketing, international trading, HSE, technical service.
- There is the Group chief financial officer who handles: IT, tax, corporate finance, budgeting, financial reporting.
- There is the Group HR officer who handles: planning & recruitment, people strategy reward, performance.
- There is the Group regional officer who handles: managing and oversee regional operations, monitor and drive regional production target, cost management.
- There is the Project director who handles: oversee planning, implementation and tracking of new projects.
Leadership and Management of Dangote Organization
The Dangote group management is led by its board of directors e.g. the Chairman, CEO, and Non-executive Directors. The board has a responsibility for the assessment and management risk in the Dangote organization. It is responsible for employee’s supervision and their day to day activities of the organization with the objective of creating a sustainable increase of the employees. The organization believes in unity diversity and accordingly seek to employ and retain world class human resources irrespective of disability, gender, race, ethnicity, religion. They strive to provide employees with an atmosphere that promotes their productivity and develops their potential. The organization achieves this by bringing out strategic programmes that ensure a conductive work environment and which create the atmosphere for sustainable growth and development of the staff. Their efforts in human resources were centred on employee value proposition that was anchored upon; talent management and organisational development, learning and development, compensation and benefits and workplace operational excellence.
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Principles followed by Dangote Organization
- Their Vision is to be a leader in cement manufacturing, respected for the quality of products and services and for the way business is conducted.
- Their mission is to deliver high returns to the shareholders by selling first class quality products at cheap prices, backed by excellent customer service.
- To help Nigeria and other African countries towards self-reliance in the manufacturing of the world’s most basic products by creating efficient production facilities in key locations close to key growth markets.
- To help in providing economic benefits to rural areas by way of direct and indirect employment in all places which they operate.
- Their values as a well-established organization, they understand that they exist to satisfy their customers. Accordingly, their customer orientation reflects intimacy, integrity.
- They continuously seek and develop new business, employing state of the act methods to retain their market leadership.
- They are a huge organization working in order to deliver the best product and services to their customers and shareholders, to achieve this they demonstrate teamwork.
- They thrive on being leaders in the business markets. To do this they focus on continuous improvement and professionalism.
External and Internal Influences
The swot analysis helps the organization to know their current situation in order to plan it out while preparing strategies. The following below is the SWOT for Dangote organization.
The Dangote Group SWOT Analysis
Strength
- It is well established brand within the Nigerian market.
- It experiences and success of wide range of industries across the country.
- Shareholders are confident and well rewarded.
- It is already established within the food and beverage industry in Nigeria.
- It is the most successful conglomerate organization in West Africa.
Weakness
- The current economic downturn has had a negative effect of the profits and turnover of the organization.
- The previous political unrest has led to high levels of crime and terrorism.
- The infrastructure within the country is not as efficient as it could be, although it is improving.
Opportunities
- The increasing population that is predominantly young or working age.
- The current brand strength means that new product can take advantage of the established nature of the company within specific industries.
- The increase in employment will improve the image of the organization through increased social activities.
Threats
- The launching of a new product during an economically difficult period carries a heavier risk than normal.
- The emergence of many cyber-crimes and fraudster in the country.
The Dangote Group PESTLE Analysis
The PESTLE analysis is used to know the external business situation, they use PESTLE in order to know the factors that can affect them while including external activities, the following below is the PESTLE analysis of Dangote organization.
Political
- The previous governments have led to an unsettled political instability.
- The strong links and relationship with other African countries.
- The strong and established unions for workers.
Economic
- The experiencing of growth and strengthening overtime due to current economic reform put in place by the new president.
- The government is working hard to ensure stronger public-private partnership in order to improve investment.
Social
- The high levels of crime and political unrest under previous governments.
- The high proportion of working age population and younger population not an aging population.
Technological
- The infrastructure and telecommunications currently being improved by the government through reforms.
- The good range of television and media companies although they are governmentally controlled.
Legal
- The Dangote organization has a legal team headed by mahamud kazaure the organization has had a legal issue in 2017 in the organization was not found guilty of the crime were reported of.
Environmental
- The Dangote organization strives to minimize the environmental hazards in all of its operation right from cement production and fuel refinery.
The Dangote Group Organizational Ethics
The Dangote organization is set by a strong goal and objectives to maintain the integrity of its organizational activities. The board has established an insider trading policy designed to protect its customers. The insider policy provides its employees with guidelines regarding trading shares of the company. The organization gives a period notification to all relevant staff. Dangote group regularly reviews its corporate governance framework to ensure that the governance framework set out and reign force the company value. The staff activities are guided by 22 policies
Ethical problems faced by Dangote organization and how it was solved
In 2012, a manager in one of the branches used university students to work in the organization which was not allowed, when they were caught the Dangote group has a board meeting in which they brought out a solution that they will be sending unknow inspectors to inspect what happening in the branches and it worked because most of the people who were not working legally were caught and arrested including the people who were involved.
Audit and Fraud
The board is responsible for effective management of audit and fraud in Dangote organization, and oversees the risk profile of the Organization through a committee that was created by the board called “The board audit and fraud management committee [BAFMC]”. The chairman of the committee reports on key audit and fraud discussed at its quarterly meetings to the board. The committee is responsible for review and formulation of the organization audit and fraud policies and organization and governance audit and fraud management.
Audit and Fraud problems faced by Dangote organization and how it was solved
In 2018 some employees of the Dangote organization were arrested for a 15 million Naira fraud; the suspects were arraigned by the economical financial crime commission [EFCC] when they diverted nine trucks carrying 800 bags of cement each valued at 15 million which were meant for the organization customer. The BAFMC then started putting GPS in all trucks that will be delivering goods to the customer and when the goods arrive there will be a text message to the customer that will inform him his goods have arrived and he should count to see if there has been some of the goods are incomplete, if its complete he should send a message saying it complete, if its incomplete he should send a message and the workers who sent the goods to the customer will be called for questioning.
Conclusion
In conclusion the Dangote organization is overseeing to set the goals and objectives of being the point of reference for high standard of good corporate governance. Their key focus every time is recognition of and adherence will all laws evolving the business markets. It holds a firm to its principles of transparency, accountability, integrity through the adaptation of corporate strategies in order to comply to its legal and ethical environment.
