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Global Business in Nigeria Operations

by Danial
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Abstract

Global business organizations are planning to diversify and expand the business for the emerging markets. For last few years, Africa has been considered as the emerging market. So business organizations are planning get a foothold there.  The country Nigeria is selected as the base station because of it good economic performance and scope for expansion in oil refinery business.

Introduction

Key Assumptions:

The business: Manufacturing tools and machineries for oil refineries

Imaginary name of the company: Oil & Gas Engineering Services Co. Ltd (OGES)

Present market: USA and European market

Emerging market: overall Africa and especially Nigeria

Cause of moving out: Over saturation in the present market and poor economy

Advantage: Business expansion and market diversification

Main challenge: Poor infrastructure and political problem

Entry strategy:  agency formation and hire- purchase strategy

News Link:The assignment has taken a clue from news with the headline “Africa’s Richest Man Bets Big on Oil Refinery” published in Wall Street Journal. (http://online.wsj.com/news/articles/SB10001424052702304607104579210322347689090). The news tells that a Nigerian man Aliko Dangote, the richest man in entire Africa for last two decades is going to step in oil refinery business.  The estimated investment is $9 billion for coming two years to construct the largest private refinery in Nigeria. It is expected to produce more oil compared to any African country.

Global Business in Nigeria Operations

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