Running head: Cemex’s Foreign Direct Investment Cemex Foreign Direct Investment Jeff Panian Davenport University Abstract Cemex is one of the fastest growing cement manufacturers in the world. Starting out more than a decade ago Cemex‚ “has transformed itself from a primarily Mexican operation into the third-largest cement company in the world” (Hill‚ 2008). The success of Cemex has been attributed to its skills in customer service‚ marketing‚ information technology
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1. What benefits have CEMEX and the other global competitors in cement derived from globalization? More broadly‚ how can cross-border activities add value in an industry as apparently localized as cement? (Question for Analysis) The oligopolistic nature of the cement business dictates the limited notion of business strategy‚ however CEMEX‚ one of very few cement producers found that through globalization‚ a variety of benefits can be obtained and utilized to their own. Expanding to the global
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Corporate Social Responsibility: A closer look at the social performance of CEMEX The relationship between natural environment and industries has often been named ‘dysfunctional’. An increase in the levels of awareness of the society towards activities of companies‚ both positive and negative‚ has pushed corporations to address to their corporate social responsibilities. Industrial Pollution has been a concern for the society. The effects of companies’ actions on the environment are constantly
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decisions were really molded by the nature of their industry/product. FDI yielded the most profitable and controllable option which they felt would stimulate the fast growth of the company. When looking at the theories of FDI‚ it is easy to see why Cemex preferred a direct investment instead of the other options of penetrating these markets. Exporting was eliminated as an option right-off-the-bat due to their product‚ cement; specifically ready-mixed cement that can only last about an hour and a half
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Introduction: CEMEX which is one of the largest cement producers in the world was founded in 1906 by Lorenzo Zambrano Gutierrez near Monterrey in Northern Mexico. It was initially named as Cementos Hidalgo. CEMEX remained a domestic company till 1960. During this period it acquired company called Cementos Portland Monterrey and merged with Cementos Mexicanos. In 1982 when the economic crisis hit Mexico‚ the government was forced to liberalize its economy which allowed CEMEX to attract foreign investment
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Case Study 1 Cemex: A DIGITAL FIRM IN THE MAKING 1. How did digital technology transform the way Cemex ran its business? In previous years when Cemex began‚ the business’ operations ran without the use of digital technology‚ they used telephones as a communication medium between customers and employees. However‚ this proved to be futile because it was very time consuming and costly to Cemex. Phone lines were jammed as customers‚ truckers and dispatchers tried to get orders
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06 Internal Analysis In this part‚ the report will briefly illustrate the result from analysing the internal environment of CEMEX by supply chain analysis and resources and competences framework and VRIO model. 6.1 Value Chain Analysis Activities | Resources | Competencies | PrimaryActivities | Supply chain management | | * Good relationships with products suppliers and transportation companies | | Operations | - Internal design | - Import products from Vietnam | | Distribution
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CEMEX: Rewarding the Egyptian Retailers - R.Sathyanarayanan S Santhosh Kumar Shriram V Mohan Prasanth Subramaniam Goutham Raju To extend its global presence‚ CEMEX entered the Egypt market through acquisition of Assiut Cement Company CEMEX – Company background • CEMEX was founded in 1906 under the name Cementos Hidalgo • Purchased Mexican Cement producers and expanded into petrochemicals and tourism • Initially it was a domestic firm with 90% of revenues from Mexico • In 1992
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Cemex Case Write-up Cemex and the Low Income Construction Market * Cemex’s target market in Mexico does not realize their dream home‚ while they can afford it. * Cemex’s revenue comes from big-ticket/large scale customers‚ middle- and upper-income individuals‚ and low income/do-it-yourself homebuilder customers. The sales for low-income customers only drop 10-20% during 1994 Mexico crisis. And Cemex see large market potential in low-income customers market. Thus‚ Cemex’s target market
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his “creative thinking”‚ but I am very sorry to say this kind of “creative thinking” is called “YY” in China. 2. Did the Reward Program motivate retailers to sell more CEMEX products? I’m afraid not. Here we have to define what the real motivation is? Yes‚ making money. Where is the money come from? Yes‚ the end-users. If CEMEX can de-commoditizing the product and crate really value for the end-users‚ its products will become money making products which can bring long-term cash for the retailers
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