Empirical Assessment of Performance of Dangote Cement Plc: An End-Users’ Perspective

Abstract

End-users, who are the focus of this assessment of performance in respect of Dangote Cement Plc, have been regarded as the most important stakeholder of any business activity. Previous works have not showcased an assessment of performance based on an end-user’s perspective which is why this study sets out to resolve the problem concerning how end-users react to market changes when patronizing the Nigeria cement manufacturing industry. Simple regression model was used to test the hypotheses – to show the relationships between the dependent variable - Cement Production Level (CPL) and the independent variables - Annual Average Price per bag of Cement (AAPC) and Turnover (TO). The study found that the explanatory variables portrayed significant positive relationships with CPL. In both cases, this relationships were very strong because the correlation coefficients (R) were above 97% and the adjusted coefficients of determination (adjusted R²) which are the explanatory variables showed that there was more than 62% significance in their relationships with CPL. This means, that over 97% of Dangote Cement Plc’s production (supply of cement) succeeded in keeping prices up 62% of the time. The paper found that end-users increasingly continue to patronize products of necessity even when they are produced by a firm quite monopolistic in nature because they have no near substitutes. As a result, there is a policy implication that even though end-users expect quality products, great value, or a compelling brand and would equally avoid products of companies that fail to deliver on customer service, they (end users) may have no succor other than a regulatory regime set by the Government especially where monopolistic goods of necessity (such as cement) are concerned. Accordingly, the study recommends that government (or its agency) should set up minimum production volume benchmarks, regulate margins and establish price ceilings to protect the end-user.

Key terms: Assessment of performance, Cement, End-user, Cement Production Level, Annual Average Price per bag of Cement, Turnover.

DOI: 10.7176/EJBM/13-10-15

Publication date:May 31^st 2021