DRIVING TO THE FUTURE: dUNLOP NIGERIA PLC

Author :

Albert Alos

Pages :

15

Product Type :

Case

Reference # :

BP-C-98-1-01

Teaching Note :

Institute:

Lagos Business School

Setting:

Nigeria. Tyre. Large

Year:

1998

Keywords:

Tyre industry, diversification, global competition

Summary/Abstract:

Against an unstable and harsh economic environment, Dunlop Nigeria had recorded an average real growth of 20% in sales and 11% in asset size. In March 1991 the company had invested in the purchase of 60% of the shares of PAMOL, thus integrating backwards into rubber production, and by 1994 it also acquired 40$ equity in Hagemeyer, thus diversifying into the paints industry. Both moves had proved to be profitable. Apparently, however, the stock market did not seem to recognise Dunlop's good performance. Dayo Lawuyi, Dunlop's Managing Director, was considering what steps the management of the company should take to keep the good performance and improve the company's value in the stock market.