...acquisitions? Did CEMEX show any of the six biases identified in Ghemawat and Ghadar’s article? Did CEMEX pursue any of the alternative strategies proposed by Ghemawat and Ghadar? CEMEX needed to acquire international acquisitions, because they were threatened by multinational cement producers when the Mexican government started to liberalize the economy. These international acquisitions had a few objectives that they were obligated to meet. At first, if CEMEX was not able to integrate the acquisitions to meet the requirements of their own structure, then they would not buy the acquisition. After the first requirement, the interest expense ratio should be maintained below 4.5 per cent and the ratio of net debt to net earnings should be kept below 2.7 per cent. Finally, the acquisitions needs to achieve the same effectiveness and performance of the other CEMEX companies. CEMEX shows one of the six biases identified in Ghemawat and Ghadar’s article. CEMEX shows the ‘’Top Line Obsession’’. The Top Line Obsession means that senior managers are more focused on the top line, rather than the bottom line a an accounting statement. In the article of Ghemawat and Ghadar are also seven strategies that a senior manager can pursue. The strategies that CEMEX uses are the ‘’Pick Up the Scraps’’, ‘’Keep Your Eye on the Ball’’, Make Friends’’ and ‘’Sell Out’’. The Pick Up the Scraps strategy means that a company buys another company when a profitable opportunity reveals itself. CEMEX bought companies...
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...Cemex: High Tech Cement Report title page +names of team members To be done Executive Summary To be done Question A. Based on case data outline the strategy followed by Cemex to achieve its position of prominence in the cement industry. What factors and resources equipped the company to grow so successfully over the period described in the case? Also, compare Cemex with Cisco. Where are they similar and where do they differ? Cemex utilized four key strategies to achieve a position of prominence in the cement industry. First, Cemex innovated state of the art technology to outperform competitors. Cemex leaders challenged the operations groups to develop more efficient ways ways to produce concrete and bought technology through acquisitions. A telecommunications network between 11 plants was established as early as 1988. The IT consulting group, Cemtec, was spun off which utilized online surveys to manage customer relations. Second, Cemex converted the commodity business into a specialty business by helping their end users improve profitability. E.g. in Mexico City, by guaranteeing delivery times of 20 minutes or less, the contractors maximize the cost effectiveness of the crews working on the site. Third, Cemex bought out competition in markets they wanted to expand influence. In some geographies, such as Mexico, Cemex owned >70% market share through acquisitions. Lastly, Cemex embraced risk management as one of its core competencies...
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...16th 2012 Faculté des sciences de l'administration Université Laval Sunday, December 16th 2012 Faculté des sciences de l'administration Université Laval How CEMEX Builds the Future How CEMEX Builds the Future Eullide BAH 111.043.894 Yacine JABRI 111.053.706 François MARTINEAU 905.189.147 Lore OLAERTS 111.051.409 Charlotte PELLICANO 907.182.173 Presented to M. Gahima Égide Karuranga Eullide BAH 111.043.894 Yacine JABRI 111.053.706 François MARTINEAU 905.189.147 Lore OLAERTS 111.051.409 Charlotte PELLICANO 907.182.173 Presented to M. Gahima Égide Karuranga Outline Introduction 1 Globalization process - triple bottom line approach 2 Cultural differences and business practices 2 Laws, regulations and public opinion 3 Economic, Financial and Technical considerations 4 The Retention Challenge 6 Employee retention challenge regarding a transnational/multidomestic strategy 6 Compensation and benefits 7 Training and development plans 8 Health and safety policies 8 Employee engagement 9 The Cultural Differences Challenge 11 A quick reminder about CEMEX’s HR Challenge. 11 CEMEX first solution: its internationalization method 12 The special asset: SHIFT 12 Conclusion 13 APPENDIX 1 i APPENDIX 2 ii APPENDIX 3 iii Bibliography iv Introduction CEMEX is a multinational specialized in the cement industry. It produces and distributes cement, ready-mix concrete, and aggregates and related building materials all over...
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...Foreign Direct Investment Learning objectives • Be familiar with current trends regarding FDI in the world economy. • Understand the different theories of foreign direct investment. • Appreciate how political ideology shapes a government’s attitudes towards FDI. • Understand the benefits and costs of FDI to home and host countries. • Be able to discuss the range of policy instruments that governments use to influence FDI. • Articulate the implications for management practice of theory and government policies associated with FDI. The focus of this chapter is foreign direct investment (FDI). The growth of foreign direct investment in the last 25 years has been phenomenal. FDI can take the form of a foreign firm buying a firm in a different country, or deciding to invest in a different country by building operations there. With FDI, a firm has a significant ownership in a foreign operation and the potential to affect managerial decisions of the operation. The goal of our coverage of FDI is to understand the pattern of FDI that occurs between countries, and why firms undertake FDI and become multinational in their operations as well as why firms undertake FDI rather than simply exporting products or licensing their know-how. The opening case describes the international growth of Starbucks. The closing case explores Cemex’s foreign investments. OUTLINE OF CHAPTER 7: FOREIGN DIRECT INVESTMENT Opening Case: Starbucks’...
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...reflect current research, current events and global developments, and includes company examples from the popular press. In Chapter 1, we introduce trends and developments facing international managers and then expand those topics in the context of the subsequent chapters. For example, we discuss developments in globalization and its growing nationalist backlash— in particular resulting from the global financial crisis. We discuss the effects on global business of the rapidly growing economies of China and India and other emerging economies such as those in Africa, and the expansion of the EU; the globalization of human capital; and the esca- lating effects of Information Technology and the global spread of e-business. We follow these trends and their effects on the role of the international manager throughout the book. For exam- ple, in Chapter 6 we focus further on strategies for emerging markets, while also dealing with changing strategies to respond to economic decline around the world and an increasing level of nationalism in some industries; we have a section on “Using E-Business for Global Expansion” as well as discussing “born global” companies. In Chapter 7, we added a section on strategies for SMEs and a new section on “Value Creation in Alliances.” We have condensed some research material in Chapter 3, while adding a new cultural profile on Latin America and expanded the one on Germany. In Chapter 2 we lead into another contemporary...
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...order to define and understand what poverty is, we can consider about conditions of having a little or no money, goods or means of support, state of being poor and lack of vital resources such as education, healthcare, food, clean water and safety. According to Feed America analysis, there were around 14.5% of population (43.5 million) who lived in poverty in 2013 whereas 15.1% lived in poverty in 2010. Thus we can see that poverty rate among United States slightly decreased due to powers applied by different sectors of country, such as government, business and society/non-profit organizations. United Nations organization states that about 21,000 people die every day of hunger or hunger-related causes, it means that there is one person die every four seconds. It is very sad because children die most often. Today, poverty is a huge issue which affects global economy and wealth of the whole population. Moreover, we see high level of inequality, there are people who earn couple dollars a day, whether they live in wealthiest nation in the world or poorest, the difference is real. Many people feel that high level of inequality will affect social cohesion and lead to problems such as increasing crime and violence. Moreover, the poorest part of people always has less access to health, education and other services provided by government and private businesses. Some of these people cannot even afford initials therefore they become outsiders from society's point of view and...
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...Northwestern University Kellogg School of Management SYLLABUS and ASSIGNMENTS International Business Strategy INTL 460 SECTIONS 61 and 81 Fall 2008 Professor Daniel F. Spulber Office 606 Leverone 491-8675 E-mail: jems@kellogg.northwestern.edu International Business Strategy Course Description The course defines the objectives and strategies of international business. The course emphasizes economic analysis of international business strategy formulation. Topics covered include gains from trade, costs of trade, and the competitive strategy of the international business. The course considers alternative modes of market entry, including import and export through intermediaries, contracting with suppliers and distributors, strategic alliances and foreign direct investment (FDI). Case studies are used to illustrate the basic principles of multinational business management and strategy. The course introduces the “Strategy Star” analysis. The first week of the course is dedicated to introducing international business strategy and providing a review of the micro-economics concepts that will be employed during the course. The course then introduces the concept of the ‘Global Value Connection.” This concept is used to develop global competitive strategies that depend on doing business between countries. Weeks 2 and 3 present strategies for providing global added value. The course highlights the economic aspects of gains and costs of trade that are relevant...
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...B2B Brand Management Philip Kotler ´ Waldemar Pfoertsch B2B Brand Management With the Cooperation of Ines Michi With 76 Figures and 7 Tables 12 Philip Kotler S. C. Johnson & Son Distinguished Professor of International Marketing Kellogg School of Business Northwestern University 2001 Sheridan Rd. Evanston, IL 60208, USA p-kotler@kellogg.northwestern.edu Waldemar Pfoertsch Professor International Business Pforzheim University Tiefenbronnerstrasse 65 75175 Pforzheim, Germany waldemar.pfoertsch@pforzheim-university.de ISBN-10 3-540-25360-2 Springer Berlin Heidelberg New York ISBN-13 978-3-540-25360-0 Springer Berlin Heidelberg New York Cataloging-in-Publication Data Library of Congress Control Number: 2006930595 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer-Verlag. Violations are liable for prosecution under the German Copyright Law. Springer is a part of Springer Science+Business Media springeronline.com ° Springer Berlin ´ Heidelberg 2006 Printed in Germany The use of general descriptive names, registered...
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...“Shaping the Post Crisis world”. (as cited in International Management.p3.para.2) The writer believed this theme was chosen due to the impact the recession had on the booming economies of the world. A crisis involves a recession, depression, collapse and drying up of liquidity, collaterals and rising and falling prices due to inflation. The financial crisis which crippled the world economy caused a credit crunch, collapse of the major stock market which in turn affects investments, lending across to borrowers, workers, and decision making regarding the business. It is important to note that this crisis has caused lending institutions to withhold loans and reduce interest rates drastically. The credit system came to a standstill. Several companies experience the effects that caused their businesses to...
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...call it, “climbing Mt. Sustainability”, a mountain higher than Everest, to meet at that point at the top that symbolizes zero footprint —zero environmental impact. Sustainable: taking nothing, doing no harm’. - Ray Anderson Sustainability has various definitions, widely differing for a developed nation to a developing, for an environmentalist to a professional, for a corporation to an NGO. More to consider within corporations- for a manufacturing company to an energy intensive one, for a financial to a construction but all of these players have to climb the same big mountain from different directions, facing different slopes and steep passes THE MOUNTAIN SUSTAINABILITY!!! When we bring Holcim under the indicators of sustainability the inclinations smile towards positive results. As a leading cement company Holcim established in 1912 has been a pioneer in the field of sustainability. From extraction to the production process over to the final product Holcim keeps its pace with the goals of sustainability. For a construction company the approach to sustainability is different when compared to other corporations, as for Holcim the approach lay in: * Adopting the three pillar approach of “The triple bottom line”- economy, society and the environment. * Strong belief in creating value for the stakeholders by embedding sustainability in the very heart of all operations. * Formation of a sustainable development committee chaired by Roland Kohler, responsible for the sustainable...
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... * ------------------------------------------------- BEST MBA TEXTBOOKS * ------------------------------------------------- SUBSCRIBE Part-time MBA Degree in DC Blog on in and out of class experience of part-time MBA student at GWU School of Business Deloitte & Touche Consulting Group Case Analysis APRIL 12, 2011 The presented case of Deloitte and Touche Consulting Group engagement with SKS Manufacturing is offering invaluable lessons in team and project management. It briefly touches upon all major facets of the consulting company involvement with client projects, such as: • Engagement planning • Team selection • Roles and responsibilities of team members • Background and qualifications of key people • Client participation • Gathering and analyzing data • Making recommendations Most importantly, however, the case is emphasizing the need for the proper balance between the core competencies that consulting companies bring to the table in their engagement with the clients. Namely, the balance between the technical knowledge and skills vs. internal communication...
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...bneuwirth2012@kellogg.northwestern.edu 1 EXECUTIVE SUMMARY In his landmark book “The Fortune at the Bottom of the Pyramid,” C.K. Prahalad describes the profits that can be earned by selling products to “Bottom of the Pyramid” customers. While there is truth to this, companies face unique challenges when operating in the rural regions of emerging markets where many of these customers live. For example, the consumer population is dispersed over a wide geographic area, transportation infrastructure is often poorly developed, and many consumers have sporadic and extremely low incomes. This paper examines these challenges from a marketing channel perspective. The fundamental question is: How can companies entering into rural emerging markets design a marketing channel strategy that meets the needs of customers and allows for the long-term profitable success of the business? I begin answering this question by examining common challenges that companies operating in this environment face. Each challenge is accompanied by examples of companies that have solved the problem in a unique way. Then, I develop a generalized framework for designing marketing channels in rural emerging markets. Finally, I apply the framework to d.light Design, a company that manufactures and sells solar lanterns in India and Africa and that I worked at in the summer of 2011. 2 TABLE OF CONTENTS Introduction Challenge: Distribution Network Design Fast Moving Consumer Goods: Hub-and-Spoke Consumer Durables: Aggregate...
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...Saudi Cement Company: “Survival is the name of the game in a very competitive industry” Dr. Salem M. AL-Ghamdi King Fahd University of petroleum and minerals Dhahran, Saudi Arabia Abstract This is a case study on a Saudi Arabian company known in the cement industry. Saudi Cement Company (SCC) is a Saudi joint company established in 1955. The company is listed in the Saudi stock market. The information was collected through a structured questionnaire and from secondary data. The case write-up fits a case study in a strategic management undergraduate and graduate course. Information was organized to provide insights on how the company evolves overtime with an emphasis on strategic issues such as vision and mission, internal analysis via company’s current operation, External analysis using Porter five force model and major strategic issues Keywords: Strategy and policy, Saudi cement industry, Porter five force model, vision and mission, SWOT analysis. COMPANY BACKGROUND Saudi Cement Company (SCC) is a Saudi Joint Company established in 1955. The principal object of the company is to produce cement and cement products and to invest in the cement fields. SCC operates two cement plants in the Hofuf Plant and Ain Dar Plant in the Eastern Province of Saudi Arabia, located about 36 km apart and are both at an approximately equal distance of around 120-130km from King Abdulaziz Port at Dammam. Below is a brief history of the Company: a...
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...Front Breakout Dynamics Putting Vision to Work Being a Magnet Company Delivering the Promise Executing Breakout Breakout Leadership Appendix: case study companies Index List of Figures Figure 1.1 Figure 2.1 Figure 3.1 Figure 4.1 Figure 5.1 Figure 5.2 Figure 5.3 Figure 5.4 Figure 5.5 Figure 6.1 Figure 6.2 Figure 6.3 Figure 6.4 Figure 7.1 Figure 7.2 Figure 7.3 Figure 8.1 Figure 8.2 Figure 8.3 Figure 9.1 The Breakout Strategy Cycle Companies Getting on the Fast Track Companies Staying Out Front Types of Capital and the Capital Accumulation Process The Vision Wheel State Transition for Harley-Davidson: Organization State Transition for Harley-Davidson: Culture State Transition for Harley-Davidson: Relationships State Transition for Harley-Davidson: Markets The Six Pillars of a Value Proposition Leveraging up the Apple Value Proposition Reconciling Different Value Propositions Leveraging up Samsung Electronics’ Value Proposition Components of a Business Model Aligning the Business Model and Value Proposition Business Model Needs Analysis Delivering Strategy System Balance and Strategy Delivery at CEMEX Organizational Culture and Cultural Reproduction Breakout Leadership Capabilities Chapter 1 Breakout Strategy ______________________________________________ We all want to identify the essential ingredient that makes for outstanding business success, the decisive factor that differentiates exceptional companies from those that are just plain average. Sadly, like the elixir...
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...74-94. Derfus, P. J., Maggitti, P. G., Grimm, C. M., & Smith, K. G. (2008). The red queen effect: Competitive actions and firm performance. Academy of Management Journal, 51(1), 61-80. Franken, A., Ewards, C., & Lambert, R. (2009). Executing strategic change: Understanding the critical management elements that lead to success. California Management Review, 51(3), 49-73. COURSE LEARNING OUTCOMES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Identify the vision, mission, and stakeholders of a firm. Identify how the six segments of the general environment affect an industry and its firms. Identify the five forces of competition. Analyze the external environment for opportunities and threats that impact the firm. Analyze the internal environment of a company for strengths and weaknesses that impact the firm’s competitiveness. Identify various levels and types of strategy in a...
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