. 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
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Cemex S.A.B. de C.V. (Cemex) Executive Summary This paper presents fundamental and financial analysis of Cemex. The analysis is performed by analyzing the company ’s financial data for the period beginning December 2002 through December 2005. The paper introduces Cemex by presenting the company ’s information and a brief summary of its main activities. Following the introduction‚ the paper will perform an extensive industry and company analysis and summarize
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11/1/2013 OREIGN Learning Objectives IRECT • Examine how FDI is implemented in different types • Identify the factors that influence FDI • Understand why and how host government encourage FDI inflow NVESTMENT 1 2 1 FDI occurs when a firm invests directly in facilities to produce and/or market a product in a 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
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to be the competitive advantage if CEMEX. Continued innovation High level of commitment to customer service and satisfaction Proven post-merger integration expertise (PMI) Efficient production‚ distribution and delivery processes through information system Ability to identify opportunities in developing countries CEMEX is one of the world’s largest building materials suppliers and cement producers. Founded in Mexico in 1906. They supply cement to CEMEX has operations extending throughout
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CEMEX: GLOBAL GROWTH THROUGH SUPERIOR INFORMATION CAPBILITIES 1. CEMEX is a cement company. What are the sources of competitive advantage in the cement industry? What is CEMEX’s position in the global cement industry? First‚ the cement business is cyclical. The uncertainty of the number of demand and sales restricts a cement company to gain profits stably. Thus‚ the expansion of the scale of the company is very critical to enhance the competitiveness‚ especially the international expansion to different
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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
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CEMEX is one of the world’s top producers of cement and concrete manufacturer and it is rapidly spreading across the globe‚ serving thousands of customer’s everyday through a worldwide network. CEMEX based in Mexico. At first CEMEX’s strategy are improve and increase their profit to more efficient by selling products and turn into selling of complete solution because they have difficulties in their business‚ because of lack of well communication system‚ weather changes‚ traffic jams and problems
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CEMEX Cemex is one the leading producer of cement in the world. The company was born in 1906 in Mexico as Cementos Hidalgo. The actual name was given in 1931 after the acquisition of the Cementos Portland Monterrey; the company was renamed Cementos Mexicanos – CEMEX. The company grew very fast in Mexico and soon became the first cement producer in the country but it was during the 90’s that the top management came to the decision that the future of the company will go thru the expansion in the
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1. What benefits have CEMEX and the other global competitors in cement derived from globalization? Globalization has given many benefits to CEMEX and its competitors. First of all‚ it reduced the tariffs of product exportation by acquiring local plants and facilities instead. By doing so‚ these cement companies could control the localized quarries‚ which give them the proximity to the raw material needed for cement production. No need to ship the goods across the border‚ therefore no tariffs on
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CEMEX 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? There have been several benefits for CEMEX and its global competitors derived from globalization: (strategic group‚ part of the big six competitiors) International trade offered opportunities to arbitrage price differentials. Import from low cost countries and sell to 3rd parties to
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