International Entrepreneurship Assignment: Case Study on Aliko Dangote
Question
Task:
The International Entrepreneurship Assignment consist of the following parts:
PART A
Aliko Dangote is a Nigerian business magnate and a monopolist.
You are required to develop a case study on him, critically give a detailed personal profile of Aliko Dangote.
PART B
Based on the case study above, critically analyze how Aliko Dangote (An international Entrepreneur) and his firm confirm as a HABITUAL/SERIAL (Entrepreneurship)
PART C
You are required to undertake a critical literature review on the topic GROWTH AND DEVELOPMENT IN THE INTERNATIONAL SME
Answer
International Entrepreneurship Assignment Part A – Case study on Aliko Dangote
Introduction
The corporate environment across the world has witnessed contributions of renowned entrepreneurs from various parts of the world. Strategies and vision of these entrepreneurs have changed the world and developed societies in several ways. Aliko Dangote can be marked as one such entrepreneur. The main aim of this case study is to discuss the personal profile of this person, his contribution in the corporate world and how became monopolist in the Nigerian economy.
Current position
He is a renowned business magnate and monopolist, based in Nigeria and is currently one of the richest persons in Africa. He has founded Dangote cement and currently owns almost 80% of this organization. Several salt & sugar manufacturing organizations are also owned by Aliko Dangote. In 2018, he has also been listed as one of the powerful Billionaire in the list of Forbes (Forbes, 2021). According the 2021 global billionaire desk his rank is 117. He currently has 3 children and he can be marked as a family person.
Early life
Aliko Dangote was born in the year 1957 to one of the richest family in West Africa. His great grandfather was known to trade cola and ground nuts and this was how he became one of the richest persons in the West African region. He was born in an affluent family and his family also owned a business.Dangote never focused on enjoying the money his family has. Instead he took loan from his uncle and became an entrepreneur at a very young age. Thus, it can be said that influence from Dangote’s family played a major role in helping him to become a successful entrepreneur.With the borrowed money he started his business Dangote Cement. Initially he used to sell sugar, flour and salt but his main mission was to motivate people of Africa in such a way so that they can strive in the global market (Dangote cement, 2021). It is believed that the success of Aliko Dangote came with the help of this venture of his.
Critical analysis of Aliko Dangote’s personality
Dangote started trading business in the year 1981. In the year 1999, Dangote travelled in Brazil to emphasize on business expansion. He has been marked as one of the prominent business leader and monopolist because of his change management strategies. Initially, Dangote used to trade products but after coming from Brazil Dangote decided to change the entire business model. The trading company became the manufacturer. In Nigeria, people used to rely on imported consumer goods and this was one of the major gaps in the business sector in Nigeria. This gap was exploited by Dangote and he started manufacturing consumer goods within the country (Business chef, 2021).According to the trait theory of entrepreneurship an individual who successfully turns into an entrepreneur have some unique entrepreneurial traits. These traits enhance their ability to generate unique and creative ideas. Exploitation of gap by Dangote has helped the world know about his effective leadership strategies. Thus, the personality of Dangote can be linked with the trait theory of entrepreneurship.Furthermore, Dangote has almost 13 subsidiaries that are spread in various parts of Nigeria. It is found that diverse product portfolio is one of the primary reasons of success of Dangote cement and Aliko Dangote.
He also said that to become one of the successful business magnates in the current business environment one must dream big and show have tenacity to achieve goals slowly.According to effectuation theory successful entrepreneurs have the ability to create value for their own business. Aliko Dangote has never got discouraged with any kind of challenges he faced while building his empire. He has always empowered his employees so that they can overcome difficult challenges. This has enhanced the value for the organization.Thus, this can be marked as one of the major entrepreneurial lesson from the live of Dangote. Apart form increasing the range of products in his portfolio, he has also become an investor in the African economy (Vanguard, 2014). With the expansion of his business empire he created jobs for millions of people in Africa. Furthermore, the bird in hand concept of decision making can be linked with the entrepreneurial aspects of Aliko Dangote. According to this concept entrepreneurs tend to create opportunities with the available resources instead of making a proper business plan. Aliko Dangote forecasted the growth of oil sector in Nigeria while making business decisions.On the contrary, there are few controversies that are attached to the actions of Aliko Dangote. One of the primary objectives of Aliko Dangote is to make Nigeria independent from oil imports.Various experts also said that once the construction site of refinery oil gets finished low and medium skilled workers will immediately lose their jobs (DW, 2019).This aspect is not marked as one of the sustainable business decisions and this is one of the reasons the leadership and entrepreneurship strategies of Aliko Dangote receives several criticisms.
So, if the early life and personality of Aliko Dangote is looked at it can be seen that effective leadership abilities and skills along with entrepreneurial traits are of utmost importance to become a successful entrepreneur in this global market. From the above discussion, the primary lesson that has been learnt from Aliko Dangote is vision. Dangote has always been visionary and he always aimed at developing Nigerian community. Thus, an individual who is visionary can be an effective entrepreneur. Furthermore, another major lesson that has been learnt is accepting change. Dangote has always focused on accepting changes in the global environment. An international entrepreneur should have the ability to accept change and should be flexible in nature. This can help them to grow in the volatile market. Furthermore, according to bird in hand decision making on the basis of available opportunities is also one of the important traits of International entrepreneurs. The current market situation is volatile and competitive. Organizations are witnessing constant changes in the market. Thus, to grab opportunities from the changes are of utmost importance.
Conclusion
The aim of this case study was to focus on the personality profile of Aliko Dangote who is one of the richest business magnates in Africa. The report concludes that introduction of diverse range of product in the portfolio of the business and change in the business model has helped Aliko Dangote become one of the richest men in Africa. Family influence played a major role in Aliko Dangote’s life.The report also concludes that Aliko Dangote adopted Bird in hand technique to grab opportunities from the available resources.
Reference List
Business Chef, 2021. Aliko Dangote - the ultimate business leader. [online]. Available at
Dangote Cement, 2021. About Dangote Industries Limited. [online]. Available at
DW, 2019. Nigeria: World Bank helps finance controversial fossil fuel project. [online]. Available at
Forbes, 2021. Aliko Dangote. [online]. Available at
Vanguard, 2014. Aliko Dangote: A lesson for African entrepreneurs. [online]. Available at
International EntrepreneurshipAssignment Part B- Habitual Entrepreneurship of Aliko Dangote
Introduction
Several types of entrepreneurs operate in the 21st century business environment. Habitual entrepreneurship is one of them. The aim of this part is to critically analyse the process in which Aliko Dangote practice Habitual entrepreneurship.
Critical analysis
When high profile entrepreneurs own several businesses successfully it is termed as habitual entrepreneurship. This type of entrepreneurship generally takes place in countries or settings where the opportunities for business growth is restricted. To overcome the restrictions within the nation, entrepreneurs tend to diverse their product portfolio and prevent the company from reaching the declining stage (Westhead and Wright, 2015). There is no exception in case of Aliko Dangote. Nigeria is one of the developing economies of the world and due to several political conflicts, entrepreneurship fails to drag opportunities within the nation. Apart from that Nigeria used to import huge section of consumer goods from different parts of the world. This gap within the corporate sector was being leveraged by Aliko Dangote and he started changing its business model. Aliko Dangote started manufacturing consumer goods like Salt, sugar, pasta, noodles and many more.
In addition to this, the approach of Aliko Dangote can be marked as Habitual entrepreneurship because Dangote group has opened almost 13 subsidiaries. Sectors in which Dangote group is carrying out their businesses are Real estate, mining, petroleum refinery, logistics, poly sacks and many more (Dangote Group, 2021). The objective of the organization is to provide basic needs to the people of Africa at a lower cost. This has not only helped the organization and Aliko Dangote gain popularity among the Africans but it has also helped the organization to constantly strive in the turbulent and volatile African market. On the contrary, Habitual entrepreneurs have the ability to develop relevant strategies that can help them sustain in the market. In the current business environment adoption of sustainable business strategies has become one of the important parts. If the entrepreneurial strategies of Aliko Dangote are looked at it can be seen that he is not focusing on sustainable business operations. In Ethiopia, Dangote Group faced several issues while implementing CSR initiatives (Dunay, Ayalew and Abdissa, 2021). It is also found that work of workers who are low-skilled are also not permanent in the company and work on contractual basis. This cause major grievances among the workers who are working in oil refineries because they are afraid of losing their jobs. Thus, it can be said that if sustainable business operations are not practiced properly and effectively by Aliko Dangote. This can decrease the productivity of workers within the workplace and can further lead to decrease in the organizational performance.
Conclusion
The main aim of this case study report was to critically analyse habitual entrepreneurship. From the case study report it can be concluded that Aliko Dangote has managed to open wide range of subsidiaries in the African market. This can help the organization to strive in the market where opportunities are less. Furthermore, it is the current responsibility of the entrepreneur to undertake sustainable actions to develop the operations within the organization more effective.Thus, it can be concluded that individuals often have entrepreneurial abilities from their birth but it is their own responsibility to develop their skills and abilities according to the need of the market.
Reference List
Dangote Group, 2021. Our Businesses. [online]. Available at
Dunay, A., Ayalew, A. and Abdissa, G., 2021. Why Socially Responsible Determinant Factors of Organizational Performance: Case of Dangote Cement Factory in Ethiopia. Sustainability, 13(9), p.4783. Westhead, P. and Wright, M., 2015. The habitual entrepreneur phenomenon. International small business journal., pp.1-16.
International Entrepreneurship Assignment Part C- Critical Literature Review
Abstract
The aim of this report is to discuss the importance of SMEs in the modern-day economy and how it should be supported by different authorities or governing bodies. The contribution of SMEs in the world economy has been mentioned in the section below. Along with that the process in which government bodies can support the development of SMEs have been discussed in details.
Providing support to their growth and development
SMEs often face a wide range of barriers while carrying out their businesses. Thus, it is the responsibility of governing bodies and other authorities to provide relevant support to the growth as well as development of SMEs. According to the study conducted by Ramukumba, (2014), SMEs are important because their create jobs and contribute significantly especially to the under-developed and developing economy. Thus, it is the responsibility of the governing bodies to develop policies that makes the physical infrastructure affordable, boost the process of procurement. Flexible legal framework and limited restrictions on taxation policies can also help the organizational leaders to grow significantly. However, as opined by Halim, Ahmad, Ramayah and Hanifah, (2014), it is the primary responsibility of the founder of the organization to ensure employees emphasizes on innovation. The business environment has become very volatile and the needs and demand of the customers are constantly changing. Thus, to cope up with the constant change in the business environment, SMEs need to emphasize on innovation. Innovation and launching new products or services in the market can help SMEs grow and expand in the corporate environment. Entrepreneurs should support other members within the organization by promoting innovation as one of the significant parts of organization’s culture. Employees should take part in brainstorming sessions and they should be empowered. Empowered employees can contribute to the growth of the organization in a significant way. Apart from entrepreneurs it is also the responsibility of the government of nations across the world to fund SMEs so that they can grow and contribute to the economy of the country.
Reference List
Halim, H.A., Ahmad, N.H., Ramayah, T. and Hanifah, H., 2014. The growth of innovative performance among SMEs: Leveraging on organisational culture and innovative human capital.
International entrepreneurship assignmentJournal of Small Business and Entrepreneurship Development, 2(1), pp.107-125.
Ramukumba, T., 2014. Overcoming SMEs challenges through critical success factors: A case of SMEs in the Western Cape Province, South Africa. Economic and business review, 16(1), pp.19-38.
