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 as an option
Premium Investment Marketing Foreign direct investment
Which theoretical explanation of FDI best explains Cemex’s FDI? The theory that best explains Cemex’s foreign direct investment (FDI) activity is that of internalization due to limitations of licensing or also known as the market imperfection approach. Cemex wanted to expand horizontally because it wanted to reduce its reliance on its home market and provide some stability in the demand for their product. Also‚ they saw opportunities abroad and it could provide their service‚ which
Premium Investment Economics Foreign direct investment
QUESTION 3 Read the management Focus on Cemex and then answer the following question: a. Which theoretical explanation‚ or explanations‚ of FDI best explains Cemex’s FDI? b. What value does Cemex bring to a host economy? Can you see any potential drawbacks of Cemex’s inward investment in an economy? c. Cemex has a strong preference for acquisition over greenfield ventures as an entry mode. Why? d. Why do you think Cemex decided to exit Indonesia after failing to gain majority control of Semen
Premium Investment Foreign direct investment Theory
Douglas Kleinsmith Lisa Rochford 8:00- 9:20 MW 18 March 2013 What Can You See? For many‚ you have to see something to believe it. However‚ when looking at the beliefs of a blind person‚ we discover that seeing may actually distort our beliefs. In Raymond Carver’s short story “Cathedral”‚ an unnamed narrator tells a story of meeting a blind man for the first time in his life. Before meeting Robert‚ the narrator tells us of how uncomfortable he is about him. If it had not been for his obligation
Premium Thought Mind Narrator
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‚ Thai Nguyen (Vietnam) – Investment in upstream supplier (backward) or downstream purchaser (forward) – Backward: invest in input industries abroad to serve production – Forward: invest in marketing‚ distribution channel 10 Wholly owned direct investment Joint venture 11 12 3 11/1/2013 Market factors •Size‚ growth
Premium Investment International trade International economics
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
Premium Explanation Theory Politics of Indonesia
As you can see our compition is La Baule apartments which you have already visited. Our main aim will be to attract the brits by showing them the services and products we have to offer; it varies from free complimentary toiletries to cheaper low prices local cabs if they wish to travel in and around La Baule during their stay. We aim to meet and exceed customer’s needs; also we cater for all types of customers and not just certain audience in particular. We will offer to meet and exceed all customer
Premium Customer Wheelchair Bed
. 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
Premium Politics of Indonesia Government Arbitration
CEMEX: TRANSFORMING A BASIC INDUSTRY COMPANY Case Study Questions 1. How is CEMEX Mexico providing added value to its customers? R: As cement is a commodity market‚ CEMEX realized that they should provide added value by developing customer services and offering solutions for the needs/wants of their customers. See Appendix 1: CEMEX - Customer Services 2. How has CEMEX developed and leveraged its strengths to enhance its market position and profitability? R: The Company was extremely
Premium Construction Customer service Customer
Information Technology Management CEMEX : GLOBAL GROWTH THROUGH SUPERIOR INFORMATION CAPABILITIES Team No. 8 : Q1) How do you describe IT impact Map for CEMEX? 1)Picture 1. The impact of IT on Strategy and Operations ▪ Description Goals Support Local Improvements Core Business Improvement Activities - Building and acquiring plants. - Diversifying business into mining‚ hotels and petrochemical. - Developing information technology. - Investing in a satellite telecommunication
Premium Technology Management Information technology management