Preview

Cemex'Case - International Strategic Management

Satisfactory Essays
Open Document
Open Document
504 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Cemex'Case - International Strategic Management
International Strategic Management

CASE STUDY: CEMEX’S COST OF «GLOBALISED» GROWTH

1. Executive summary (Objective & Methodology)

Objective (CEMEX’S vision): “Deliver superior customer service and outstanding product quality in every market it serves» Competitive Advantage: IT, people, innovative marketing methods, and effective customer support:  In 1987, creation of an information network system (satellite dishes for vocie and data transmission) In 1995, Cemex launched one of the first wide-ranged corporate websites
 In 2000, Standard modus operandi for post-merger integration:

The «CEMEX WAY»
 Innovative marketing campaign: «Throw & Win» campaign ==> identify

consumer preferences and serve them accordingly

ST511E

International Strategic Management

Weaknesses/Problem:
1. Not much was done to develop the brand of Krispy Kreme that had huge

potential, even though the company had a very loyal customer base that acted as a promotional vehicle for strategy in itself.
2. Company’s focus on Southeastern U.S. left rest of the U.S. market untapped 3. Area of stores was found unproductive: 7000 square-foot + stores were

uneconomic to operate in small-volume locations.

2. Diagnosis (CEMEX & it’s environment)

PESTEL ANALYSIS

ST511E

International Strategic Management

SWOT ANALYSIS

Strengths
Strong Brand Name First “Cement high tech Company“

Weaknesses
Overexpansion Many bank loan contracted

Mexico’s first true multinational $19.4 billion debt (six times its ==> Region’s most admired company EBITDA) Management and Employee Training Lack of free cash flow The “CEMEX WAY“: standardization of ADR value of CEMEX by the end of processes, efficient integration 2008: strategy $4.01 Strong branding and customer satisfaction 10% cut on it’s worlwide staff

Opportunities

Threats

Bank agreed to restructure the debt: U.S. financial crisis turning into a $15.5 billion in 2009 ==> removes the worlwide financial crisis risk of a near term insolvency Anti-dumping system in

You May Also Find These Documents Helpful

  • Powerful Essays

    Tootsie Roll Case Study

    • 2927 Words
    • 12 Pages

    Over the last few decades the company has almost doubled their sales without spending money on advertising or buying out companies that did not fit in with their goals. While this is true in the most recent decade its operating…

    • 2927 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    4) On-time delivery from vendors was no better than 60 percent. And forget about accurate sales forecasting. The company lacked the most basic information to achieve that crucial goal.…

    • 838 Words
    • 3 Pages
    Powerful Essays
  • Powerful Essays

    Krispy Kreme is a relatively small doughnut seller. It has only 295 stores while Dunkin Donuts has over 3,600 outlets in the United States and Canada. In spite of its size, Krispy Kreme has been described by many as “the hottest brand in America.” The company’s success in an environment which has made success difficult for many food operations is due in large part to the long-term vision of its top management and its establishment and achievement of S.M.A.R.T. goals. The company originated in Winston-Salem, North Carolina, in the mid-1930s when Vernon Rudolph bought a secret recipe for yeast doughnuts from a French pastry cook. Rudolph ran the company until he died in 1973 without naming a successor, which caused the company problems for the next decade.…

    • 1977 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    The dog days of August and September have often spelled trouble for the world’s economy. In 2008 it was no different, at 1:45AM on September 15, 2008, the US fourth largest financial firm filed for Chapter 11 bankruptcy protection following the massive exodus of most of its clients, drastic losses in…

    • 1432 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Golden Valley Real Estate

    • 761 Words
    • 4 Pages

    for a company that had not yet been established and seemed to be the most…

    • 761 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Do you have a dream or an idea that you think would work but no one else understands? If you do, then you would get along with Walter Lee Younger wonderfully. Set entirely in the Younger living room, this play takes place in a run-down apartment in the South side of Chicago during the middle of the twentieth century. Three generations of the family live in this crowded space.…

    • 1048 Words
    • 5 Pages
    Good Essays
  • Best Essays

    In 2007, many banks in US and Europe were hit by a collapse of the value of mortgage-backed securities. The investment banks and brokerages lost $175 billion of capital between the periods of July 2007 to March 2008. JP Morgan Chase rescued Bear Stearns in March 2008 with the help of $29 billion of guarantees from the Fed. By end of January 2008, $75 billion of new capital had been injected into banks. In UK, the rising cost of liquidity destroyed the business model of a large mortgage house and the Fed dropped its interest rate by 75 basis points late January. Problems were already arising but it did not occur to the world that it was going to be so drastic. In July 2007, Deutsche Bank was forced to bail out two property-based funds. In October 2007, the US Treasury encouraged Merrill Lynch, Morgan Stanley and Bank of America to set up a $70 billion fund to help ease the value of the toxic assets – unfortunately that did not work either. By the end of 2007, the world’s central banks tried to pump in large amounts of liquidity into the global financial system. On 7th September 2008, James B. Lockhart III (2008) announced the decision to place Fannie Mae and Freddie Mac into conservatorship run by the Federal Housing Finance Agency. On 15th September 2008, Lehman Brothers filed for bankruptcy, which caused a series of drastic changes in the stock…

    • 3431 Words
    • 14 Pages
    Best Essays
  • Powerful Essays

    Paper on Physical Security

    • 4681 Words
    • 19 Pages

    The Sarbanes-Oxley Act of 2002 (SOX) was enacted because of the actions of corporations during the 1990s (e.g. – WorldCom & Enron), and commands a higher level of accountability. This law changes the way companies manage financial reporting, auditors, internal controls, and executive responsibility.…

    • 4681 Words
    • 19 Pages
    Powerful Essays
  • Good Essays

    Cemex Fdi

    • 691 Words
    • 3 Pages

    Please read the ‘Critical Thinking and Discussion Questions’ on page 269 and answer the questions No.2 and 3.…

    • 691 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Krispy Kreme

    • 1001 Words
    • 5 Pages

    The question is what they do wrong for the business that is nearly more than 70 years, what makes them fall so quickly especially in year 2003 and 2004, there are at least 2,300 franchised businesses in Unites States, many that are successful, but there are difficulties in the franchise model, and Krispy Kreme with the combination of ambitions, greed, and inexperience in managed to stumble into most of them.…

    • 1001 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Cemex

    • 332 Words
    • 2 Pages

    Cemex believed that it could create significant value by acquiring inefficient cement companies in other markets and transferring it skills in customer service marketing information and technology and production management to those units . Also they want to be a unique company in worlwide. Therefore they need to purchase all the competitor companies and converted their sysytem to them.…

    • 332 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Krispy Kreme Doughnuts

    • 1366 Words
    • 6 Pages

    Krispy Kreme 's success has left many in awe. This case will talk about how Krispy Kreme has been so successful using internal and external analyses and will also take a look at its competitors. Financial reports will be used as a benchmark to measure success.…

    • 1366 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Despite that the company has some significant strength; its weak points are taking away the potential…

    • 971 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Hit by an unprecedented series of multiple events and shocks, the Global Financial System is in a state of deep distress. One after another, large global banks have faced extensive losses, some…

    • 3808 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    1. Share of wallet of current customers was not close to 100% due in part because the company did not offer capital goods and has a relatively smaller product range as compared to the larger competitors. i.e. it is not a big force in the market.…

    • 918 Words
    • 4 Pages
    Good Essays