International Strategy

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CEMEX – International Business Strategy
Question 1:
In May 2000, CEMEX was preparing to expand through acquisitions in Asia, Africa and the Middle East. What kind of global giant do you think Lorenzo Zambrano wanted the firm to become? Using module theory and evidence from the CEMEX case study, critically evaluate his chances of success.

This essay will critically evaluate Lorenzo Zambrano’s chances to succeed while Cemex planned to expand through acquisitions. It will aslo illustrate what kind of global giant Lorenzo Zambrano wanted Cemex to become by using module theory and evidence from the case study. For multinational enterprise such as Cemex, having operations, and coordinating through offices, branches and plants in two or more countries. Planning to expand through acquisitions was an exciting big challenge for Zambrano as a CEO of Cemex and his team, thus country-level managers, vice presidents and regional managers. It is evident that planning to expand globally Cemex international operations have a more exciting oportunities to not only explore new markets, earn worldwide competitive positioning, thus global-scale efficency and multinational flexibility, but also economies of scale, create new sources of information, knowledge and low-cost resources on a world-wide basis (Bartlett et al, 2008:2). The evidence from the case study shows that Zambrano was ready to expand from being third largest cement company in the world in 1999 (case study, 247) to broaden his options for strategic moves in order to compete with regional and international competition to become a truly global enterprise by transforming company into a global brand. According to Bartlett et al, 2008:6, global scanning and learning capability opportunities is another factor that is critical to company’s international strategy. Cemex was involved in developing better tools for screening opportunities to identify and decide what other countries to invest and expand through...
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