Abstract

The study analyzed the effects of strategy implementation on financial performance in Dangote Cement Company, Gboko plant. The study adopted ex-post facto research design and the case study method. Secondary data on sales volume, productivity and were sourced from the balance sheets of Dangote Cement Company from 1996 to 2016. This period allowed for a precise examination of the pre and post-structural change era in the company. Dummy values were used to represent structural change (prestructural change was denoted by 0 values while post-structural change was denoted by 1 values). Descriptive statistics like mean, standard deviation, skewness and kurtosis as well as multiple regressions were used for data analysis. The model used for data analysis is based on the assumption that the financial performance of Dangote Cement Company plc depends among others, on strategy implementation. However, financial performance does not solely depend on strategy implementation; other factors like inventory management (sales cost, physical stock, economic ordering quantity and buffer stock) also affect financial performance. Also, financial performance indicators used in this study are profitability, productivity and sales volume. The study found that generally, strategy implementation has impacted positively on the financial performance of Dangote Cement Plc Gboko plant. Specifically, this impact is more profound on sales volume and productivity, but little on profitability. This little impact of structural change on profitability could be due to external factors like global financial crisis and recession and/or internal factors like high costs of inventory management. It therefore recommended that the management of Dangote Cement Company should hire the services of consultants to check its management of inventory and ensure prudence in the company and also outsource some of its products to minimize the risks of being exposed to the harsh effects of financial crises.