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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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? - Reduction of tariffs associated with exporting - Due to internationalization these companies have been able to spread their risk. Therefore‚ if one market is not performing they can rely on the other (diversification) - Talent across markets - Ability to identify new emerging markets and having
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-404495233680 Assignment II Creating value from internationalization CEMEX International Business Strategy Academic year 2014-2015 What benefits have CEMEX and the other global competitors in cement derived from globalization? To answer this question‚ we used the ADDING framework (HBS Press 2007). This framework consists of six components of value creation. The first one is “adding volume”. In the 1980’s‚ CEMEX refocused its strategy on growth through acquisitions instead of continuing to
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“Cemex: Global Growth Through Superior Information Capabilities” 1. In an article on competitive advantage through better use of information‚ strategy guru Michael Porter and his co-author Victor Miller presented the following 2x2 matrix. The implication of the matrix is that you can improve your performance by increasing the intensity of information in your value chain (i.e.‚ business processes) and products/services. In which quadrant would you place Cemex? Why? 2. How has Cemex
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recommendations would you make to CEMEX regarding its globalization strategy going forward? In particular‚ on what kind of countries should it focus its future expansion? CEMEX expansion is a process where the company performs its due diligence and the aim of expanding into a country with a large population and high population growth. As the text stated CEMEX should continue to focus on developing Asian economies‚ Central America‚ the Caribbean and Sub-Saharan Africa. CEMEX should keep its eye on China
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CEMEX is the largest cement manufacturer in Mexico and the third largest in the world. The current status of the company shows that it has expanded its business worldwide‚ in both northern and southern America‚ the Caribbean ‚ Europe ‚ Middle East and South East Asia . Despite the technological maturity and unique culture of the cement industry CEMEX and all the other competitors in the market have benefited from the process of globalization. According to the adding model template CEMEX
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1. Which theoretical explanation‚ or explanations‚ of FDI best explains Cemex’s FDI? Cemex’s foreign direct investment strategies and 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
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of Payments Manual defines Foreign Direct Investment (FDI) as ‘the objective of a resident entity in one economy obtaining a lasting interest in an enterprise in another economy’ (IMF‚ Balance of Payments Manual‚ 5th edition‚ 1993‚ p.86). In reality this investment usually involves some degree of ownership but there is no universally agreed ownership requirement (A. Harrison‚ Business Environment in a global context 2nd edition 2014‚ p.228). FDI can occur through several different routes such as a
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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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FDI Have an understanding of the patterns and distribution of FDI flows in the global economy Have an understanding of the major explanations of determinants of FDI and the reasons for the resurgence of FDI in the global economy after 1985 have an awareness of the role of multinationals in improving competitiveness of domestic firms and other impacts of FDI Have an awareness of role of FDI promotional policies A Foreign direct investment (FDI) is a controlling ownership in a business
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