Connect with us

News

Dangote’s Six Business Strategies for Every Aspiring Entrepreneur

Published

on

  • Dangote’s Six Business Strategies for Every Aspiring Entrepreneur

In 2011, I told a group of friends that at this rate, Dangote and his Dangote Group, will strategically control and earn most of Nigeria’s consumer spending. That was before Dangote refinery, rice farming and a series of unique business moves were made. In 2018, seven years later, Dangote Group announced that its investments in various sectors of the country now worth more than 10 percent of the Nigerian economy.

To put it in perspective, Nigeria’s Gross Domestic Product was $404 billion in 2016, according to the World Bank. That evaluation put Dangote’s investments at over $40 billion. More than his current net worth of $11.1 billion.

However, our focus here is Dangote’s strategies and implementations. Below are six of those strategies.

Take small but bold steps: Dangote Started as a commodity trader with zero manufacturing knowledge. However, he learned on the job and grew from a new entrant position to a power trader, still not enough to compete effectively. Dangote jumped into the manufacturing sector to take charge of the whole process in order to monitor quality and control costs.

“To achieve a big breakthrough, I had to start manufacturing the same commodities I was trading,” said Aliko Dangote.

Dangote’s backward integration strategy didn’t just allowed him to cut costs but also helped build Dangote BRAND through job creation and strong support for local production, which he subsequently used to advertise his products, societal marketing concept.

Be the first: Dangote started sugar production in Nigeria and became the first person to build a crude oil refinery. And whenever he is not the first like in the cement industry, he revolutionalized the industry through efficient value chain process that allows him to introduce competitive price while focusing on marginal gains.

“Make the best quality goods possible at the lowest price possible, while paying the highest wage possible. ” Henry Ford.

Be strategical: After paying taxes for years — with little to nothing to show for it in terms of infrastructure. Dangote approached the government for an agreement to use his taxes to build roads under his new company, Dangote Construction Company. Not only will Dangote build roads to enhance his businesses and communities in which he operates. He will make profits from his own tax/construction company, just by thinking outside the box.

If it is not working move on: Too many people hold on to an idea for far too long, forgetting the idea is a means to an end not the end in itself. Dangote sells his noodle plants to rival De United Foods Industries (Indomie) for $12 million after several efforts to perfect its product quality and gain reasonable market share from Indomie, that was controlling 70% as at the time, failed. He knows he is not going to win and if anything at all it will take years.

Take calculated risks: In an economy with numerous business challenges but unmet needs, Dangote won’t stop taking risks despite experts saying otherwise. He acquired a struggling state-owned cement plant in 2000 and built one of the world’s largest cement plants, Obajana. He understands he is not going to make money or meaningfully impact the lives of his people without solving key challenges. Most entrepreneurs won’t even risk 20 percent of their net worth on a single project, however, Dangote took on a complex project, oil refinery, requiring more than his entire net worth of $11.1 billion. The US$14 billion refinery project with capacity to produce 650,000 barrels a day will turn Nigeria from importer of petroleum products to net exporter by 2020.

Be the difference: Before Dangote, there were great industrialists, however, apart from late Moshood Abiola, because of his political career, Dangote is now the face of African entrepreneur because of his unique approach to business and ability to take on complex projects like the refinery. He is the difference.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Education

JAMB Releases 36,540 Withheld UTME Results, Dismisses Cyber Breach Claims

Published

on

The Joint Admission and Matriculation Board (JAMB) has quelled concerns over the integrity of the Unified Tertiary Matriculation Examination (UTME) results by releasing an additional 36,540 previously withheld scores.

This move follows earlier revelations of withheld results and assertions of a cyber security breach.

Fabian Benjamin, the spokesperson for JAMB, confirmed the release of these results in a statement issued late Tuesday in Abuja.

This latest batch of released scores, when combined with the 531 previously unveiled, brings the total number of results made public to 1,879,437.

Benjamin took the opportunity to address circulating rumors regarding the security of the UTME results.

He categorically dismissed claims of a cyber security breach, saying that the examination outcomes remain intact and securely stored.

He stressed that the results are not stored in any cloud system and thus cannot be compromised by external entities.

At the time of the UTME release, JAMB had disclosed that certain results were withheld pending further investigation.

Subsequently, 531 of these results were recently unveiled with the remainder still under scrutiny.

Benjamin explained that any candidates implicated in examination malpractice are undergoing thorough investigation.

The examination board intends to meticulously review footage from CCTV cameras installed across all accredited centers to ascertain each candidate’s involvement.

Benjamin urged the public to remain vigilant against misinformation originating from sources not affiliated with JAMB.

He attributed the discrepancies in minimum admissible scores to variations among tertiary institutions. Some institutions, he noted, proposed lower minimum scores than others, resulting in varying benchmarks.

Benjamin clarified that these benchmarks are determined collectively by all Heads of Institutions during the annual Policy Meeting on Admissions, ensuring uniformity across the country.

Also, Benjamin cautioned religious organizations against overstepping their designated roles.

He warned against the dissemination of false information to governmental bodies for personal gain.

Continue Reading

Travel

British Airways Owner IAG Prepares for Summer Surge Amid High Travel Demand

Published

on

british-airways

As the world gradually emerges from the grip of the pandemic, the travel industry is witnessing a resurgence in demand with British Airways owner IAG SA gearing up for a busy summer season.

Despite lingering challenges, the airline conglomerate remains optimistic about the outlook, citing strong demand for travel within Europe and across the Atlantic.

In a recent stock exchange filing, IAG disclosed an adjusted operating profit of €68 million ($73.3 million) for the three months ending March.

According to Chief Executive Officer Luis Gallego, the group’s core markets, including the North Atlantic, South Atlantic, and intra-Europe routes, have shown robust performance, positioning them well for the upcoming peak travel period.

With vaccination rates increasing and travel restrictions easing in many parts of the world, consumers are eager to resume travel plans, fueling the surge in demand.

However, the road ahead is not without its challenges. While travel within Europe and across the Atlantic remains strong, other regions present a more complex operating environment.

The ongoing conflict in the Middle East has dampened demand for certain destinations, while airspace restrictions resulting from geopolitical tensions, such as the Russian invasion of Ukraine, have disrupted flight routes to East Asia.

Despite these hurdles, IAG remains resilient, banking on the strength of its core markets and the performance of its brands to weather the storm.

The company’s strategic positioning and proactive measures to adapt to changing circumstances have positioned it to capitalize on the rebound in travel demand.

As the summer season approaches, IAG is focused on ensuring operational readiness to meet the surge in passenger numbers.

With travelers eager to reconnect with loved ones, explore new destinations, and embark on long-awaited vacations, the airline group stands ready to facilitate safe and seamless travel experiences.

As vaccination campaigns progress and travel sentiment rebounds, IAG’s proactive approach and strategic investments position it as a key player in the aviation industry’s recovery journey. With optimism on the horizon, the company remains committed to delivering exceptional service and fostering a seamless travel experience for passengers worldwide.

Continue Reading

News

Israeli Troops Take Control of Rafah Border Crossing Amidst Ceasefire Talks

Published

on

Israeli troops took control of the Rafah border-crossing area in Gaza on Tuesday morning, with Hamas saying all aid flows from Egypt had stopped.

The army has halted “the movement of people and aid completely,” the Hamas-run crossing authority said in a statement. Soldiers replaced Palestinian flags with Israeli ones.

It’s the first time Israel’s army has moved into the area since the war with Hamas began in October.

Israeli Military Tells About 100,000 People to Leave Eastern Rafah

Palestinians sheltering in Rafah were told Monday to move to an “expanded humanitarian area”.

The border is the main entry point for aid into Gaza, and the Palestinian territory’s only crossing aside from those with Israel. The US has been urging Israel for weeks to allow more food and other supplies into Gaza, parts of which the United Nations says are on the verge of famine.

The movement of troops came a day after Israel told residents in parts of eastern Rafah to leave immediately ahead of a possible attack on the city.

Most Arab and many European states have said Israel should not attack Rafah, fearing it would cause mass casualties. Prime Minister Benjamin Netanyahu says Rafah is the last bastion of Hamas, with about 5,000 to 8,000 of its fighters and senior leaders lodged in the city, as well as many Israeli hostages.

Cease-fire talks between the two sides continue to drag. Hamas said on Monday night it had accepted a proposal from mediators Egypt and Qatar. Israel rejected it, saying it contained demands the Jewish state cannot accept.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending