Cemex way pdf

For CEMEX, problems are closely related to all kind of companies in the world but what can make them different is how to solve the problem itself. CEMEX be able to face the risks and the fact is that they are not afraid of risk but also make it an opportunity to grow further.

The function of managing risk is still the same with other organizational activities. From that, we can say that it can be a trademark to CEMEX because they are not avoiding the risks but faced it. CEMEX integrates market and demand risks in its overall planning for capacity and sourcing. It mitigates these risks by actively trading cement across markets. The greatest strategic risk CEMEX has faced and successfully managed is the threat to its economic viability and the globalization of the cement industry.

CEMEX manages to make acquisitions from the risk that they face it. They are very wise to take advantages from that. Now CEMEX must arrange its capabilities to meet a new set of challenges that face the cement industry and CEMEX as an increasingly visible player within the industry, as it enters the next millennium.

At the same time, Lorenzo Zambrano decided that the company needed to expand internationally or it will be a victim of larger competitors. Economic crises in Mexico in the early s and mid s forced CEMEX to turn towards foreign markets to stabilize its cash flow and hedge against domestic uncertainties.

As a result, it focused on acquiring assets in natural markets south of the Mexican border in Spain. One of the most successful factor to CEMEX is their strength as an organization that applying a very sophisticated acquisition strategy. They are brave to take risk and use it to widen their company ability. His strategy is simple when he focuses on its core cement business although others not. CEMEX way also play an important role in order to build up the company. It had three essential features.

First, the global standardization of processess in production, administration and commercial areas. Second, the alignment of organization through clear role definitions, the implementation of a common knowledge platform and the use of common language which is English. Third, the harmonization of accounting and controlling systems.

Lorenzo Zambrano also stress on the usage of information technology. It is intended to boost productively and manage its operations more efficiently. CEMEX has gained a competitive cost advantage over its competitors by setting up an excellent distribution infrastructure, computerized delivery network in which every moment of every truck is monitored in real time, enabling on-time delivery of cement and ready-mix to customers.

For CEMEX, international expansion will brought international exposure and of course the new knowledge will be get from that. They want more than that.

They want a full package and something that will give them double satisfaction. CEMEX also shifted from selling products to selling complete solutions. By this, CEMEX has established a very strong brand managed to translate it into extraordinary profits from a commodity-driven business.

CEMEX is able to capture additional revenues, enhance its profitability and differentiate itself from the others competition. As a result, it is now more appropriate to refer to CEMEX as a building materials solution provider instead of a cement company. By having it as a complete solution provider at low cost, it will attract the majority of the people in demographics in Mexico, that is, the low-income market.

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Need an account? Click here to sign up. Download Free PDF. Donald Lessard. A short summary of this paper. Lessard and Cate Reavis When one wants to globalize a company, especially when it is from a developing country like Mexico, you really need to apply more advanced management techniques to do things better.

We have seen many cement companies that use their capital to acquire other companies but without making the effort to have a common culture or common processes, they get stagnant. This case was prepared by Cate Reavis from published sources under the supervision of professor Donald R.

Lessard and Cate Reavis company had been praised for its ability to successfully integrate its acquisitions by, at one and the same time, introducing best practices that had been standardized throughout the corporation and making a concerted effort to learn best practices from the acquired company and implement them where appropriate. Known internally as the CEMEX Way, CEMEX standardized business processes, technology, and organizational structure across all countries while simultaneously granting countries certain operational flexibility, enabling them to react more nimbly to local operating environments.

See Table 1. This case details how CEMEX has exploited its core competencies, initially generated at home, and enhanced these with learnings from new countries, to begin the cycle again. See Exhibit 1 for financials and Exhibit 2 for market share information. Well before its first significant step toward international expansion in , CEMEX had developed a set of core competencies that would shape its later trajectory including strong operational capabilities based on engineering and IT, and a culture of transparency.

It also had mastered the art of acquisition and integration within Mexico, having grown though acquisitions over the years. The crash undercut the state-led nationally-focused model that had been predominant in Mexico over the years, and Mexico began the process of entering GATT, the precursor of the WTO.

Recognizing that these events would significantly change the Mexican cement industry from a national to a global game, Zambrano began preparing the firm for a global fight. The first step would involve divestitures from non-related businesses and the disposal of non-core assets. All managers were required to input manufacturing data—including production, sales and administration, inventory and delivery— that could be viewed by other managers.

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Original Title: The Cemex way. Related titles. Carousel Previous Carousel Next. Jump to Page. Search inside document. Lessard and Cate Reavis When one wants to globalize a company, especially when it is from a developing country like Mexico, you really need to apply more advanced management techniques to do things better. Lessard and Cate Reavis been praised for its ability to successfully integrate its acquisitions by, at one and the same time, introducing best practices that had been standardized throughout the corporation and making a concerted effort to learn best practices from the acquired company and implement them where appropriate.

Lessard and Cate Reavis customers were willing to pay a premium for known quality and convenient distribution, and CEMEX steadily introduced value-added features for these customers.

Lessard and Cate Reavis consumption tended to level off. Documents Similar To The Cemex way. Sohan Goel. Dr Rushen Singh. Jakir Hussain Darga. Ken Adams. Lillian Alford. Himanshu Kumar.