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
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1. What made CEMEX go beyond domestic borders? CEMEX needed to go international for various reasons, the first was that when the Mexican economy opened up, it made the cement industry vulnerable to foreign threats. Due to this foreign competitors such as Holderbank and Lafarge, CEMEX needed to diversify geographically to grow and survive. Secondly, by acquiring two big cement companies at the end of 1980s, CEMEX owned already a big market share of the Mexican cement market, which made the growth
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Cemex’s Foreign Direct Investment In little more than a decade, Cemex, Mexico’s largest cement manufacturer has transformed itself from a primarily Mexican operation into the third largest cement company in the world behind Holcim of Switzerland and Lafarge Group of France with 2007 sales of $21.7 billion and more than $2.6 billion in cash flow. Cemex has long been a powerhouse in Mexico and currently controls more than 60 percent of the market for cement in that country. Cemex’s domestic success
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A Case Study – CEMEX PROBLEM STATEMENT As the third largest manufacturer of cement, CEMEX’s goal is to fully satisfy the building needs of its global customers and create value for its stakeholders by becoming the world’s most efficient and lucrative building-solution company. To achieve this goal, CEMEX should implement several strategies. First, the company should focus on a differentiation strategy by expanding the scope of its business beyond producing and selling cement and concrete. By providing
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9-701-017 REV: NOVEMBER 29, 2004 PANKAJ GHEMAWAT The Globalization of CEMEX Geographic diversification enables us to operate in multiple regions with different business cycles. For the long term, we are trying to ensure that no one market accounts for more than one third of our business. Yet we do not diversify simply to balance cyclic downturns and upswings. We do not see volatility as an occasional, random element added to the cost of doing business in an interconnected global marketplace
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producer „Cemex“ worldwide Name Industry Products CEMEX Building materials Cement Ready-‐ mix concrete Construc8on aggregate 1906 San Pedro Garza Garcia, Mexico Lorenzo Zambrano 54,635 In 50 countries Founded Headquarters CEO Employees Opera8ons Revenue Mean facts of the historical development from Cemex
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INTERNATIONALIZATION STRATEGIES FOLLOWED BY THREE MEXICAN PIONEER COMPANIES GRUPO MODELO, GRUPO BIMBO and CEMEX ISSUES AND CHALLENGES José G. Vargas-Hernández, M.B.A;Ph.D. Profesor Investigador miembro del Sistema Nacional de Investigadores Departamento de Mercadotecnia y Negocios Internacionales Centro Universitario de Ciencias Económico Administrativas Universidad de Guadalajara. Periférico Norte 799 Edificio G-306 Zapopan, Jalisco C.P. 45100; México Tel y fax: +52(33) 3770 3343 Ext 5097 josevargas@cucea
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global and local. CEMEX, a global cement company, has recognised the imperative of developing a global mindset across the organization by standardising ways of working while simultaneously recognising and assimilating best practices from its diverse operations and people. It does this by embedding its philosophy of the CEMEX Way for acquisitions, operational reviews, and its learning and development programs for leaders and managers. Company overview CEMEX, founded in Mexico in 1906, is the world’s
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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
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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
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