...CEMEX – Sustainable performance in the construction industry -- a case study Introduction Cement was invented in England in 1824 and is a key ingredient in concrete. Every year the average family uses one tonne of cement without even knowing it. No house, school, bridge or road would be built without it. Concrete is the second most consumed substance in the world after water. It is made from aggregate, cement and water and can be mixed on building sites or supplied ready-mixed from a concrete plant. The UK’s first readymixed concrete plant was set up by a company called Ready Mixed Concrete (RMC) in the 1930s. In 2005, CEMEX acquired RMC. Today CEMEX is one of the world’s largest building materials companies. It is a leading supplier of aggregates (sand, gravel and crushed rock), cement and readymixed concrete. It also produces asphalt, concrete blocks and mortar and has a significant share of those markets. It operates in more than 50 countries and employs over 50,000 people. CEMEX UK has three cement plants, nearly 60 quarries, 40 asphalt plants and over 200 readymix plants. CEMEX’s customers range from multinational building companies to individuals building their own homes. In the UK, CEMEX generates £1 billion in annual sales. The expanding UK economy has seen an increase in the demand for roads and buildings. CEMEX plays an essential role in contributing to creating Britain’s infrastructure. CEMEX • Cement • Ready-mix concrete. • Aggregates ...
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...Pyramid CEMEX: Innovation in Housing for the Poor CEMEX is a multinational cement manufacturing company operating out of Mexico. It is the largest cement manufacturer in Mexico, the second largest in the United States, and the third largest in the world. The company has operations on four continents and recorded global revenues of $6.54 billion in 2002 with a gross margin of 44.1 percent. THE INNOVATION. . . CEMEX leads the paradigm shift of companies profitably providing housing for the poor, the Tier 4 population, instead of governments or not-for-profit organizations. CEMEX manufactures and sells raw cement, ready-mix concrete, aggregates, and clinker (used to make cement) under different brand names. As the largest cement company in Mexico, CEMEX operated in a highly protected legal environment with little competition until the 1990s. It competed mainly on price and controlled 65 percent of the market share in Mexico. However, during the 1990s, the legal barriers in Mexico broke down, paving the way for international competition. CEMEX found itself operating in a highly competitive open environment. Starting in 1987, under the leadership of Mr. Lorenzo Zambrano, CEMEX experienced explosive growth, mainly through acquisitions and global expansion. Today, the company has 235 cement and ready-mix plants in Mexico, 60 in the United States, 85 in Spain, 45 in Venezuela, 4 in Indonesia, and 4 in Egypt. In the new competitive arena and under new leadership, CEMEX fundamentally...
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...Introduction While Cemex has a strong preference for acquisitions over starting fresh, this poses several key root problems for both Cemex and the host nations. Cemex had to face some challenging questions; What are the primary factors in why Cemex has chosen Direct Foreign Investments versus some alternatives; What is the impact of their choice in FDI on the host-country, as well as home-country. What are the primary factors in why Cemex has chosen Foreign Direct Investments versus some alternatives? There are several options to consider when a company wants to move into the international global market. The biggest questions firms usually ask is, “Why do firms go to all of the trouble of establishing operations abroad through foreign direct investments when two alternatives, exporting and licensing, are available to them for exploiting the profit opportunities in a foreign market?” (Hill, 2008). This question was undoubtedly debated heavily by Cemex prior to investing in foreign markets. One of the industry specific novelties of cement manufacturing, is the product itself. “The company sells ready-mixed cement that can survive for only about 90 minutes before solidifying, so precise delivery is important” (Hill, 2008). This industry is already at a predisposed peril if it were to consider exporting their goods. The cement industry requires this product to be made on site. Due to this requirement, Cemex could have considered Licensing, “Occures when a firm...
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...Case 1 CEMEX: GLOBAL GROWTH THROUGH SUPERIOR INFORMATION CAPBILITIES 1. CEMEX is a cement company. What are the sources of competitive advantage in the cement industry? What is CEMEX's position in the global cement industry? First, the cement business is cyclical. The uncertainty of the number of demand and sales restricts a cement company to gain profits stably. Thus, the expansion of the scale of the company is very critical to enhance the competitiveness, especially the international expansion to different countries and continents. Decentralized production and sales in a wide range of countries can offset the risk of shocks in some markets. On the cost side, as a capital intensive and cash generative industry, cement industry needs large scale to build up supplier’s bargaining power to reduce the costs. Overall, the scale of company and the expansion overseas are the critical sources of competitive advantage in the cement industry. Founded in Mexico in 1906, CEMEX has grown from a small regional company to a leading producer and marketer of cement. It not only dominates the domestic market, but also operates cement and related products in more than 30 countries, especially in many emerging markets. In addition, it is the largest trader of cement in the world. At last, it is one of the world’s leading investors in IT industry. 2. Consider the period prior to 1997 in the case. What are the main IT -related changes that Cemex has made? What are the primary...
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...Solution: Window on Technology: UPS Competes Globally with Information TechnologyUPS invests heavily in information systems technology to make its business more efficient and customer-oriented. It uses an array of information technologies including bar-code scanning systems, wireless networks, large mainframe computers, handheld computers, the Internet, and many different pieces of software for tracking packages, calculating fees, maintaining customer accounts, and managing logistics.What are the inputs, processing, and outputs of UPS’s package tracking system?Inputs: The inputs include package information, customer signature, pickup, delivery, time-card data, current location (while en route), and billing and customer clearance documentation.Processing: The data are transmitted to a central computer and stored for retrieval. Data are also reorganized so that they can be tracked by customer account, date, driver, and other criteria.Outputs: The outputs include pickup and delivery times, location while en route, and package recipient. The outputs also include various reports, such as all packages for a specific account or a specific driver or route, as well as summary reports for management.What technologies are used?Technologies include handheld computers (DIADs), bar code scanners, telecommunications for transmitting data, pagers, cellular phone networks, Internet, and computers.How are these technologies related to UPS’s business strategy?UPS has used the same strategy for...
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...Case Study: Cemex A Digital Firm in the Making Question 1: How did digital technology transform the way Cemex ran its business? Because of the vision of the grandson Lorenzo Zambrano, Cemex moved from a very manual mode of operation to one where its processes were now done with the use of technology. With this in mind we can identify how Cemex was impacted by the use of digital technology below: (a) They were better able to manage “unforecastable demand”, relative to its competitors. a. All vehicles were connected to GPS tracking system b. As a result they achieved a reduced delivery time from 3hrs to 20 minutes c. Dispatchers were better able to monitor trucks d. They were able to anticipate delivery times and redirect trucks where necessary. (b) Reduction in Costs was realized as a result a. Trucks were able to deliver in shorter time frames and 35% less trucks were necessary to deliver the same amount of cement. b. Software package was used to anticipate power consumption requirements and also to facilitate use of machines during off peak hours resulting in lower electricity costs. (c) Increased revenue was realized a. Customers were now willing to pay premium price since Cemex was able to facilitate Just in time (JIT) delivery. This meant customers no longer had to have crews waiting for long periods pending delivery. b. All production facilities were linked via the satellite communications system and this facilitated better planning/forecasting c...
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...Case Studies and Exercises Lecture 2. The Rise of Multinational Companies Case: MUELLER: China Bound? (A), (B) and (C). (308-358-1, 308-359-1 and 308-360-1). Discussion Questions: 1. What are the primary ownership advantages of Mueller? 2. What are the major ways in which Mueller could serve the China market? 3. What are their primary advantages and disadvantages?? 4. If Mueller decided to invest in China, what would be the main functions of its subsidiary? 5. How could the risks involved in the FDI to China be managed? Lecture 3. The Myth of the Global Company Case: Lafarge: From a French Cement Company to a Global Leader (304-019-1) Discussion Questions: 1. What are the main characteristics of Lafarge’s internationalisation strategy and competitive competences and how do these differ from those of other cement companies such as Cemex and Holcim? 2. What were the assumptions underlying Lafarge's strategy and how justified were these? 3. To what extent is Lafarge a French company with foreign operations, as distinct from a global MNC, and how is it likely to develop as a MNC? 4. What are the implications of Lafarge’s growth for the internationalisation of other French firms? Lecture 4. Competing Capitalisms in the 21st Century Case: Messier's Reign at Vivendi Universal (9-405-063) Discussion Questions: 1. What was Messier's strategy in transforming CGE into Vivendi, what assumptions was it based on and how justified were these? 2. What does this transformation reveal about the...
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...provide a foundation of understanding of international finance and the critical options for corporate financial management within the global markets. Intensive reading will establish the basis of information on international financial structure, processes and techniques. Cases will identify important real issues and provide experience in understanding alternative solutions and developing methods to reach these solutions. Course Description The course explores the responsibilities of financial managers of multinational firms or firms with multinational affiliates, suppliers, or product markets. Topics covered emphasize exchange rate risks and hedging using derivative securities such as futures contracts, forward contracts and options. International payment mechanisms and financing and trade strategies are examined and applied in a shareholder-value maximization framework. Texts and Course Materials Fundamentals of Multinational Finance, 2003, Moffett, Stonehill and Eiteman; Addison Wesley; ISBN-0-201-84484-2. Cases in International Finance, 2000; Moffett; Addison Wesley; ISBN 0-20170086-7 Course Expectations 1. Commitment to reading and understanding of text and other assigned materials. 2. Understanding of all case assignments – with or without written reports. 3. Active and informed participation in class discussions. 4. Timely and effective completion of assignments. 5. Energetic and effective involvement in team projects,...
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...Founded in 1906, Cemex is one of Mexico’s few truly multinational companies, with market-leading operations in Mexico, Spain, Venezuela, Costa Rica, Philippines, Panama, Dominican Republic, Egypt, Colombia, and a significant presence in the Caribbean, Indonesia, and the southwest United States. It is the largest cement company in America and one of the three largest cement companies in the world, with revenues of $4.8 billion and close to 65 million metric tons of production. Cemex and its subsidiaries engage in the production, distribution, marketing, and sale of cement, ready-mix concrete, and related materials. Its strategy includes focusing on cement and concrete products, diversifying globally to cushion against volatility in local markets, developing efficient production and distribution processes, using IT to help increase flexibility, improve customer satisfaction, and reduce bureaucracy and excess staffing, and providing training and education for employees. Its state-of-the-art Tepeaca facility supplies one fifth of the Mexican market and may be the lowest cost cement producer in the world, with operating costs of $25 per ton, roughly $10 lower than the industry average, and emissions far lower than legal requirements. In 1992 Cemex purchased Spain’s two largest cement companies, reviewed, their operations thoroughly, invested in facilities, and reduced the workforce dramatically, such as by consolidating 19 offices into one. Although it was a laggard IT user through...
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...contemporary organizational issue you find intriguing. Use one field site or example for the entire paper. Also, be explicit about the level issue. For example, if you are using the concept of personality then it is an individual level issue. A list of concepts and their related levels is provided in a separate document. Focus of paper-related requirements: Outline: Submit a formal outline for your paper, complete with references. The purpose of the outline is to help you organize your content, which also results in increased clarity, improved logic, and better structure of the paper. There may be adjustments from this document to your final paper, but at this stage the paper should not require major revisions. Final Paper: Use a case study format for the structure of your paper. Identify and analyze issues using course concepts, and propose recommendations for the organization you are focusing on. Use of course concepts 1. Use a minimum of 8 concepts for the paper. Include a list of the concepts you used at the beginning of the paper. 2. Briefly define each concept you use within the text (a paragraph or two). 3. For each concept, write a diagnosis at one level (e.g., the person level). For example, you might write “The employee misses work frequently due to stress from conflict with her supervisor.” Note, stress and conflict would require definitions.) 4. For each concept, write a solution or solutions. Identify the level(s) you addressed in Step 2...
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...Calendar Overall for Case-Study Presentation & Mid-Term Exam – MGT 4760 (Strategic Management) Sem 1, 2012/2013 Sec 8 (M-W) No. | Week | Topics | Class Day | Date | Schedule | Details | | 1 | Chapter 1: The Nature of Strategic Management | 1- Mon 2- Wed | 10/912/9 | | | | 2 | Chapter 2: The Business Vision and Mission | 3- Mon 4- Wed | 17/919/9 | | | | 3 | Chapter 3: The External Assessment | 5- Mon 6- Wed | 24/926/9 | | | | 4 | Chapter 4: The Internal Assessment | 7- Mon 8- Wed | 1/103/10 | Quiz 1 (Chapter 1.2.3) | | | 5 | Chapter 4: The Internal Assessment | 9- Mon 10- Wed | 8/1010/10 | | | | 6 | Chapter 5: Strategies in Action | 11- Mon 12- Wed | 15/1017/10 | | | | | BREAK(22/10 – 28/10) | 13- Mon 14- Wed | 22/1024/10 | | | | 7 | Chapter 5: Strategies in Action | 15- Mon 16- Wed | 29/1031/10 | Case Presentation Session 1Case Presentation Session 2 | Group 1:L: Lia Hilaliah (Case Study 3)Group 2:L: Mas Syairah bte Mohamad (Case Study 5) | | 8 | Chapter 6: Strategy Analysis and Choice | 17- Mon 18- Wed | 5/117/11 | | (Mid-Term Exam 7/11 Wednesday)Seminar Room 1.1 | | 9 | Chapter 6: Strategy Analysis and Choice | 19- Mon 20- Wed | 12/1114/11 | Case Presentation Session 3Case Presentation Session 4 | Group 3:L: Mohamed Sheikh (Case Study 9) Group 4:L: Izzati Nor binti Salleh (Case Study 14) | | 10 | Chapter 7: Implementing Strategies: Management and Operations...
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...ARCTIC MINING CONSULTANTS Case Synopsis Arctic Mining Consultants is a mining company that deals with mineral exploration. In this case study, the project given is staking 15 claims in Eagle Lake, Alaska. The project Manager was Tom Parker, who has a wide experience and specialized knowledge in all nontechnical aspects of mineral exploration. He is a geological field technician and field coordinator for Arctic Mining Consultants. He assigned his previous field assistants John Talbot, Greg Boyce and Brian Millar to help him complete the project. The job required them to stake at least 7 lengths each day in order to be completed on time. However, the whole team has became very tense and agitated, especially Tom Parker, as the deadline was just around the corner and there’s still many to be finished within the limited time. The problem became worse with the way Tom managed and treated his team. The only motivation to the team was the $300 bonuses promised by the company when the job is done on time, otherwise, they might wished to give up already. This happened because working as a field assistant and in long-working hours only giving them low wages, which is considered unreasonable compared to what they have to do. During the eight hard days, everything had actually proved the strengths and weaknesses of each of the team members, including Tom. Case analysis symptoms 1) What symptom(s) exist in this case to suggest that something has gone wrong? The symptom(s) to suggest...
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...Running head: CASE STUDY XYZ Case Study XYZ: An Examination of Project Procurement Management Practices Group 12 John Doe Jane Smith Bobbie Sue University of Maryland University College Project Procurement Management, Semester XXXX, Section XXXX Professor Stephen R. Guth MMMM DD, YYYY [No Abstract or Introduction required for this assignment] The Inception Phase Rating Scale: 5—Excellent, 4—Very Good, 3—Good, 2—Poor, 1—Very Poor |Project Management Area |Inception Phase | |Scope Management | | |Time Management | | |Cost Management | | |Quality Management | | |Human Resource Management | | |Communication Management | | |Risk Management | | |Procurement Management | ...
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...policy. 2) Employee conditions: a. Lack of motivation b. Compensate for low wages by over indulgence of free food allowance c. High turnover rate due to availability of high application rates. d. Employees are mostly college and high school students e. Lack of respect for managers. f. No incentive to increase motivation. In the case study Perfect Pizzeria, the area supervisor has many problems that need his attention. The largest appears to be the organization. In this case study I will assume that the area supervisor has the authority to affect change within his organization (i.e. he is the franchise owner). Being in an area with few job opportunities should give him the perfect opportunity to recruit bright, ambitious, and motivated people to staff his pizzerias. How can the area supervisor change his organization to achieve a more fluid corporate culture? I think this change can be achieved by human resource changes, structure changes, motivational changes, and reward for good performance as well as accountability for poor performance. Each one of these areas will require a change from the corporate level. For the sake of my case study I am going to assume that the area supervisor (franchise owner) can lobby to achieve this change within the organization. The first area to look...
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...letters in industry or for a class, knowing your purpose and audience will help determine what information to include. Generally, business letters follow a particular format, although your instructor or company may require you to use alternative formats. This guide provides writers with an introduction to writing business letters. Case Studies: This guide examines case studies, a form of qualitative descriptive research that is used to look at individuals, a small group of participants, or a group as a whole. Researchers collect data about participants using participant and direct observations, interviews, protocols, tests, examinations of records, and collections of writing samples. Starting with a definition of the case study, the guide moves to a brief history of this research method. Using several well documented case studies, the guide then looks at applications and methods including data collection and analysis. A discussion of ways to handle validity, reliability, and generalizability follows, with special attention to case studies as they are applied to composition studies. Finally, this guide examines the strengths and weaknesses of case studies. Desktop Publishing: Desktop publishing is the process of laying out and designing pages with your desktop computer. With software programs such as PageMaker and Quark Xpress, you can assemble anything from a one-page document to a...
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