Cemex'Case - International Strategic Management

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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...
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