. Cemex has a stronger preference for acquisition over greenfield ventures as an entry mode. Why? 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. d.Why do
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11/1/2013 OREIGN Learning Objectives IRECT • Examine how FDI is implemented in different types • Identify the factors that influence FDI • Understand why and how host government encourage FDI inflow NVESTMENT 1 2 1 FDI occurs when a firm invests directly in facilities to produce and/or market a product in a foreign country 2 3 4 3 4 1 11/1/2013 5 2 11/1/2013 – Investment in the “same” industry – Nokia & Samsung build factories in Bac Ninh
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In September 2004‚ Lorenzo Zambrano‚ the chairman and CEO of Mexican cement maker CEMEX‚ sat in his gleaming modern office in the IBM Tower in New York City‚ an office suite similar in look and feel to CEMEX’s international headquarters in Monterrey‚ Mexico. He was feeling both exhilarated and nervous. His successful company‚ widely admired in its region and a recipient of major international awards for sustainable development‚ had just offered $5.8 billion to acquire the largest producer of
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CEMEX Cemex is one the leading producer of cement in the world. The company was born in 1906 in Mexico as Cementos Hidalgo. The actual name was given in 1931 after the acquisition of the Cementos Portland Monterrey; the company was renamed Cementos Mexicanos – CEMEX. The company grew very fast in Mexico and soon became the first cement producer in the country but it was during the 90’s that the top management came to the decision that the future of the company will go thru the expansion in the
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CEMEX is one of the world’s top producers of cement and concrete manufacturer and it is rapidly spreading across the globe‚ serving thousands of customer’s everyday through a worldwide network. CEMEX based in Mexico. At first CEMEX’s strategy are improve and increase their profit to more efficient by selling products and turn into selling of complete solution because they have difficulties in their business‚ because of lack of well communication system‚ weather changes‚ traffic jams and problems
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Cemex Key points summary | |Cemex was originally founded in 1906 as Cementos Hidalgo and became Cemex (Cementos Mexicanos) after a merger | |Case Summary |with Cementos Portland Monterrey in 1931. Throughout the 1960’s‚ 70’s‚ and 80’s‚ Cemex expanded throughout | | |Mexico to gain a 65% share of the domestic market by the end of the 1980’s. Under the leadership of CEO Lorenzo | |
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3. Why CEMEX preferred equity entry mode (mainly acquisition) instead of non-equity entry mode (such as exporting) in its international expansion? Use relevant IB theory to support your argument. CEMEX opted for the acquisition based method of entry to a foreign country due to the increasingly difficult trading barriers imposed by the USA 4. Critically anayse the reasons for CEMEX and other firms to buy existing capacity to enter new fields rather than greenfield entry strategy? * Because
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The downturn of heavy industries corporation of Malaysia Berhad (HICOM) due to depleted demand‚ poor planning‚ adverse economic factors‚ and inexperienced or inept management.. CHAPTER 1 OVERVIEW OF THE PROBLEM The depressed economic condition experienced in the last financial year continued to prevail during the period under review. Consequently‚ HICOM’s companies involved in the manufacture of intermediate industrial products such as steel billets and cement had been severely affected
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CEMEX 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? There have been several benefits for CEMEX and its global competitors derived from globalization: (strategic group‚ part of the big six competitiors) International trade offered opportunities to arbitrage price differentials. Import from low cost countries and sell to 3rd parties to
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The term global industry refers to an industry where a firm’s competitive position in one country is affected by its position in other and vice versa. Limestone‚ clay and other raw materials needed for the production of cement are present in many regions of the world and therefore cement used to be produced locally. Cement companies often owned raw material quarries and located their production facilities close by to minimize materials handling. Furthermore the high transportation costs of cement
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