1 The deal
Holcim, a swiss based Cement company that grew through aggressive markets acquisitions became one of the leader worldwide in cement industry. Over time, potential for growth has shown to be on the developing markets with a CAGR of 5.5% versus 0.3% in developed countries.
In a merger and acquisition dynamic where Argentina through its growth potential was favored by many foreign companies, Holcim through a progressive process acquired the majority stake in Cocemar, and merged it with Minetti, giving birth to a new Player in Argentina, and in particular in Buenos Aires aree where 50% of the country sales were concentrated in that sole zone, led by Loma Negra.
2 Which actions were ...view middle of the document...
2.2 People and processes
Among the cultural aspect that overasaw all industries in Argentina, the specific nature of “familily owned” companies that Minetti inherited from draw other challenges of productivity, resistance to change and lack of information dissemination and sharing, key attributes to successfully engage and complete organization changes. As a matter of fact, the target processes driving productivity required changes in the way people interacted, thus bridging the silos naturally built over time by past culture and practices.
Implementing productivity gains meant creating synergies acrcros plants and teams, and undoubtly reducing and eliminating redundancies. This proved to be difficult to implement considering some of the political and societal facts, resulting in “half way through”strategy execution, as some received severance packages and other left.
Even though the investment into the new factory in Buenos Aires set the foundation for competitive gain in the market (Increased share, and prices), it could have been the result of a restructuring in orther plants, seleting the best candidates and motivated ones to become future leaders and examples for other factories. Management by example in reference to the factory tour that Plan managers were taken into in Spain could have taken place inside Argentina, by investing in new ad agiles plant in Argentina. I believe this could have brought more transparency and motivation to...