This website uses cookies to ensure you have the best experience. Learn more

Globilization Of Cemex Essay

1812 words - 8 pages

globilization of cemexQuestion 2

Cemex is the number three in the world cement industry in terms of production capacity and has maintained the highest level of profitability from 6 leading global competitors (its EBITDA margin of between 30-40% in the late 90 ' s is 10-15% higher than the others), reflecting that the company has gained a competitive advantage in its sector. The following is an analysis of the value activities specifically related to Cemex's global strategy against Holderbank, grouping the elements of value and evaluating them by their effects, to identify the resources, skills and distinctive competencies that constitute its source of advantagecompetitive and corporate.
...view middle of the document...

To achieve differentiation and increase willingness to pay: a) segmentation and brand positioning for the informal sector construction demand bagged cement through retail channels; b) Use of GPS and IT to provide 20 minutes of guaranteed delivery, which increases the willingness to pay of customers.
Improving industry attractiveness and bargaining power: a) Cemex has been very disciplined in its acquisitions since buying local productive capacities in the countries or regions can reduce the number of competitors, get a high market share and have control of the acquired companies. Thus, the company claims to achieve their ideal local or national level by increasing the concentration of the industry where he entered and thus obtains such market power that allows you to maintain high prices and margins in these concentrated markets. In fact, the most important reason is that Cemex has an average operating margin higher than Holderbank is that Cemex charged an average of 20% higher. Thus, we have identified the cause of most Cemex operating margin (37%) versus Holderbank (24%) is due more to the price effect that the effect of operating cost, b) Management of trading: Cemex is the largest global trader cement and 60% of products are third party, which allows the company to arbitrate with the price of cement, protected by diverting imports cheaper away from its key markets with higher prices preventing it brings them down and strengthen their control over local competition. In addition, Cemex trading used to know the local market and target companies prior to acquisition.
Diversification of risk: a) Cemex achieved a reduction in the standard deviation of cash flow margin of 22% quarterly (1978-1992) to 12% (1992-1997) to locate their businesses in different markets with different economic cycles based on the prices of cement in these markets have a limited correlation, which is very important given the magnitude of the reduction, considering that the cement industry is very capital intensive. In fact it helped him weather the crisis Cemex weight in Mexico; b) Being globalized, Cemex has access and funding to acquire another company undervalued, given the local economic pressure; c) The company has taken more risks creatively to change option to grow: the ability of Spain exchanged for that of South Asia.
 Knowledge generation, resources and skill: a) be comprehensive, Cemex has the opportunity to learn new skills all types of business where the company incorporates and disseminates best practices across its global organization.Knowledge transfer has been facilitated by the homogeneity of the cement industry and the standardization of technology; b) Cemex has a culture and global management style, as ranked English, using international consultants, constant investment in technology including TI and its widespread use across the enterprise, and so on., which is supported by the centralization and standardization process.
In summary, the superior...

Other Papers Like Globilization of Cemex

A Heart Of Darkness Essay

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages Leadership is defined as a socially constructed process and which also affect organizational future outcomes. Leader is someone at high position who have overall duty for an organization, she or he decide what to do and the way how to achieve it. (Carter and Greer, 2013)The role of leader is extremely important for an organization, leader use their own power to influence the followers though many different ways such as motivation in order to

Cuba Civil Rights

1906 words - 8 pages Picture a country that has limits on how much you can make random government imprisonments and more what do you do. That is the situation for the eleven million seventy-five thousand two hundred forty-four people of Cuba since the takeover of Fidel Castro. The US is opposed to Castro taking control of Cuba. Castro managed to ease the United States nerves when he said that Cuba was against all forms of communism. According to Lana Wylie the Union

US Freight System

1273 words - 6 pages General Environment Each American requires the movement of approximately 40 tons of freight per year across the freight network. This includes everything from shirts to lawn mower to orange juice. • As the U.S. population expands, the U.S. freight system will be called upon to meet the demands of a larger population • Between 2010 and 2035, the system will experience a 22 percent increase in the total amount of tonnage it moves • By 2050, with

Democratic Peace Theory

1852 words - 8 pages democracy is called Democratic Peace Theory. However, research has begun to show that Democratic Peace Theory is ineffective and needs to be brought to an end as a model for how international relations are formed or destroyed. Democratic Peace Theory needs to be abolished as a support for forming foreign policy between democracies because of the burden placed on both parties to come to an agreement but still stand proud and victorious as a country

Booker T. Washington

1621 words - 7 pages “Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome” –Booker T. Washing. Booker Taliaferro Washington was born in Hale’s Ford, Virginia on April 5th, 1856 to Jane Burroughs and an unknown White man. Washington was married three times. His first wife was Fannie N. Smith from Malden, West Virginia. Booker and Fannie were married in the summer of 1882 and had one child

Corn, Broccoli, Grass Or Balanced

2611 words - 11 pages About a century ago, there was not an epidemic of diet-related illness, a bizarre account of destroyed farmland, dead zones in our oceans created by chemical run-off spilling into the waterways, and there sure was not millions of people questioning the moral ethics of their diet. In the Omnivore’s Dilemma: A Natural History of Four Meals, the author Michael Pollan goes on a journey to investigate the sources of the nation’s food supply, for

Related Essays

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws Essay

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

Holidays In Albania Essay

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are