...CASE STUDY 1 http://www.scribd.com/full/38399959?access_key=key-222j5zlz3s8dd9x2b6pu CASE STUDY 2 http://www.antiessays.com/free-essays/99985.html CASE STUDY 3 1) DESCRIBE THE MAIN DIFFERENCES BETWEEN THE PRIMARY SECONDARY AND TERTIARY SECTORS. GIVE EXAMPLES OF HOW CEMEX CARRIES OUT WORK INVOLVING EACH OF THESE THREE SECTORS There are three main sectors of industry. CEMEX’s business covers all three sectors of industry: * Primary – involves extraction, processing and use of raw materials from the earth * Secondary - manufacturing finished goods and construction activity * Tertiary – providing services to business and consumers, e.g. retail, finance and transport. Primary activities In its primary activities, CEMEX extracts raw materials from the land or at sea. The process of extracting mineral deposits has to fit in with the government’s Regional Minerals Plan. This specifies how much material needs to be extracted to ensure a fair balance across the country. Before extraction can begin, CEMEX must obtain permission from local authorities. Its plans must include sensitive ways of working, restoration and after-care of sites. This ensures the quality of the environment is maintained and improved once extraction is complete. CEMEX’s marine aggregates business involves extracting sand and gravel from the sea bed by dredging. Dredged aggregates are vital for the future development and maintenance of our hospitals, schools, housing and transport...
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...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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...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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...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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...In Home > Business & Economy > Organizations > case of CEMEX case of CEMEX 1. What benefits have CEMEX and the other global competitors in cement derived from globalization? Globalization has given many benefits to CEMEX and its competitors. First of all, it reduced the tariffs of product exportation by acquiring local plants and facilities instead. By doing so, these cement companies could control the localized quarries, which give them the proximity to the raw material needed for cement production. No need to ship the goods across the border, therefore no tariffs on the delivery. On the other hand, as they acquired the local plants and built distribution terminals, these companies have gained a competitive advantage of transportation cost. If they choose to export, the cost of transportation may cost them a fortune, as the cement need to be shipped in special means. Thus, they will lose their competitiveness in price otherwise the margin. Last but not least, due to the process of globalization, CEMEX and its competitors could well spread their risks. If one market is not performing well, they could depend on the other ones. So, assuming there isn’t a world-wide recession, the revenues of theirs will be more stable because of diversification. 2. How specifically has CEMEX managed to outperform its leading global competitors (e.g., Holderbank) in the cement industry? Several elements together have made the CEMEX the largest international trader in the cement industry...
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...Management Information Systems and Concepts CASE ANALYSIS Cemex: Incorporating IT into a Cement Company’s Strategy Founded in 1906, Cemex is one of Mexico’s few truly multinational companies. It is the largest cement company in the Americas and one of the three largest cement companies in the world, with revenues of $3.7 billion and close to 51 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 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. With continued diversification in the 1990s, Cemex has operations in 22 countries. It is also Latin America’s...
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...INDIVIDUAL ASSIGNMENT CASE STUDY IGB40402 MANAGING DIGITAL FIRM INSTRUCTION: Read the case study carefully and answer the questions. Any plagiarism will be penalized and no marks will be given. Duration: Monday 17th October 2011 – 21st October 2011 Late submission will not be entertained. CEMEX: A Digital Firm in the Making Cemex, based Monterrey, Mexico, is a 98-year old company that sells cement and ready-mix concrete products. It has 53 plants around the globe in countries including the United States, Spain, Egypt, Colombia and the Philippines, and is the world's third largest cement and concrete manufacturer. The concrete business is an asset-intensive, low efficiency business with unpredictable demand. Cemex dispatchers used to take orders for 8,000 grades of mixed concrete and forwarded them to six regional mixing plants, each with its own fleet of trucks. Customers routinely changed half of their orders, sometimes only hours before delivery, and these orders might have to be rerouted because of weather change, traffic jams of problems with building permits. Cemex's phone lines were often jammed as customer's truckers and dispatchers tried to get orders straight. Many orders were lost. Until about 15 years ago, Cemex's Information Technology Division was viewed as a support department for the sales function. Cemex did not have an adequate computing or telecommunications infrastructure. Only a few executives had personal computers and integrated systems...
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...CEMEX’s FDI? 1. Internalization theory best explains CEMEX’s FDI because CEMEX entered into many countries and bought domestic cement businesses instead of licensing. CEMEX has a great system and needs to protect it from competitors. 2. What value does CEMEX bring to a host economy? Can you see any potential drawbacks of inward investment by CEMEX in an economy? 2. The value is that CEMEX has a “Midas touch” that transforms a cement business into a thriving business. This brings great stimulation to the host economy and also helps in the construction field, which in turn helps to build cities and civilization. No, CEMEX would do well to invest inwardly, yet, CEMEX is better at acquisitioning businesses. 3. CEMEX has a strong preference for acquisitions over greenfield ventures as an entry mode. Why? 3. Acquisitions are solid because the business in the host economy already knows the demographics and the market. CEMEX just has to make the business better with little research. A greenfield venture would prove risky and not cost effective. 4. Why do you think CEMEX decided to exit Indonesia after failing to gain majority control of Semen Gresik? Why is majority control so important to CEMEX? 4. A licensing is very dangerous. CEMEX only have a 25% push with Semen Gresik. It did not have full control and the methods of CEMEX would be exposed and vulnerable to be stolen. CEMEX has a great system and does not want anyone interfering. 5. Why do you...
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...CEO of CEMEX, 1992 CEMEX aquired the two largest Spanish cement producers Hiring “High Potential People“ In reality young and inexperienced people willing to work insane hours to achieve financial goals Cost reduction by 30% 1997 The most admired company in Spain, Actualidad Economica Case study in transforming low tech enterprise into a model of info age efficiency Streamlining Management Reducing peak hour Energy Use Introducing alternative Fuels Automation of all Plants Reduction of Inventory levels 1989 Anti Dumping Duty imposed by International Trade Commision, 58% on all Mexican cement imports Acquisition Institutionalize acquisition process, refine post-aquisition integration strategy Innovation 1988 CEMEXNet first Mexican Company to own its own satelite communications network Today Links all global operations Detailed live access to financial data, truck routs, operational data from all individual plants 2003 Wired Magazine 5th Masters of innovation, technology, and strategic vision CEMEX overcame this burden by importing cement in to the United States from third parties from other nations than Mexico CEMEX sends post-merger integration teams (PMI) to analyze and improve operations PMI Teams attend cultural awareness and teambuilding workshops Regional Managers visit the site every month, country presonally reports back to the CEO to the US West CoastCheap Chinese cement through CEMEX own network CEMEX became...
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...Joanne Wisdom Tutorial Day and Time: Thursday, 12.00pm Name of Company: CEMEX Title: Corporate Environmental Responsibility: An investigation into CEMEX Semester/ Campus Details: Semester 1, 2012 - Bentley (Word Count: 1793) Corporate Environmental Responsibility: An investigation into the performance of CEMEX Environmental protection is currently one of the most pressing social issues; it features on the agenda of many different groups within society, including governments, special interest groups and global organisations. The actions of organisations with regard to the environment are becoming a large factor in their total profit and propensity for future growth. CEMEX is the third largest company in global cement and aggregate production; and the world’s leading supplier of ready-mix cement. Their annual production levels of cement and aggregate are approximately 55 million cubic metres and 160 million tonnes respectively. They have operations spanning across thirty three countries, currently employing 44,104 people and have an annual sales figure of US$15.14 billion (CEMEX 2012). The stakeholders that are of focus in this paper are the neighbouring communities of the production plants and the many employees of CEMEX. The production of cement is one of the most environmentally unfriendly practices in the world. During production, there are a number of environmental problems; CEMEX has a number of policies and procedures in place to combat their significant...
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...Case Study: Cemex A Digital Firm In The Making 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...
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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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