Cemex'Case - International Strategic Management
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 of a near term insolvency Anti-dumping system in
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 of a near term insolvency Anti-dumping system in