Corporate level strategic analysis and choice as a measure of achieving performance in organizations: (a survey of Dangote groups of companies/conglomerates) quoted on Nigeria stock exchange market

• Main Authors: Sev Joseph Teryima, Angahar Paul Aondona
• Format: Article
• Language: English
• Published: Academy of Business & Retail Management 2014-07-01
• Series: International Journal of Business & Economic Development
• Subjects: Corporate level strategic analysis; Business level strategic analysis; Strategic choice; Boston Consulting Group (BCG) matrix; Corporate portfolio analysis; Organizational growth factors; Strategic evaluation; environmental assessment; strategy; Competitive analysis; corporate strategic planning; multi-product firms; multi-business firms.
• Online Access: http://ijbed.org/admin/content/pdf/i-5_c-51.pdf
• ISSN: 2051-848X; 2051-8498

The objective of the research is to establish the factors that are responsible to organizational growth level in Dangote group of companies. These factors ranges from market share growth, sales volume growth (turnover), profitability, competitive advantage and share capital size amongst others. Corporate level strategic analysis and choice was adopted with specific emphasis on Boston Consulting Group (BCG) matrix – portfolio analysis. Four (4) companies from Dangote conglomerate quoted on the Nigerian Stock Exchange market namely; Dangote Cement Plc, Dangote Flour Plc, Dangote Sugar Refinery Company Plc and National Salt Company of Nigeria Plc were surveyed with a population size of 5060. The sample size survey was 371. 209 respondents from Dangote Cement Company Plc, 75 respondents from Dangote Flour Mill Plc, 48 respondents from Dangote Sugar Refinery Company Plc and 39 respondents from National Salt Company Plc using judgmental and convenience sampling technique. The Quasi-experimental survey technique especially the cross-sectional design method was adopted. The Friedman Ranking test was carried out in testing the formulated hypothesis. The test of the result revealed that there is a relationship between organizational factors such as market share growth, sales volume growth (turnover), profitability growth, effective strategy application, competitive advantage and share capital size and organizational growth in the Dangote Cement Company Plc and Dangote Flour Mills Plc with a 0.425 and 0.360 strength of association respectively and the hypothesis was rejected while for Dangote Sugar Refinery Company Plc and National Salt Company of Nigeria Plc, that was not the case and the hypothesis was accepted that organizational factors such as market share, sales volume (turnover), profitability growth, effective strategy application, competitive advantage and share capital growth does not influence organizational growth hence their hypothesis were accepted at 0.023 and 0.003 respectively. Based on the above it was recommended that organizations that desire to be stars needs to invest aggressively in (R&D) research and development to stay in the leading edge of technological knowhow. This requires having the expertise and capability to advance the state of technological knowhow and translate the advances into innovative new products. This should be a necessity in the challenging globalized world. Secondly, all the organizational factors considered as been pillars of organizational growth (e.g. market share, sales volume, (turnover) growth, profitability, effective strategy application, competitive advantage and share capita size amongst others should be evaluated consistently to establish areas of strengths and weaknesses associated with it that can stand as a barrier to stamped growth enhancement. Thirdly, comprehensive environmental assessment and strategic evaluation using SWOT analysis, CD-Pestleg, Boston consulting group analysis should be adopted for overall environmental scanning to facilitate proper monitoring of the organizational environment in order to derive areas of opportunities, strengths, weaknesses and threats that can affect organizational growth level. Fourthly, quality assurance managers should be employed by organizations to monitor/evaluate the type of strategic options adopted by companies if superior growth level is to be attained.