Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Foreign direct investment by cemex

25/12/2020 Client: saad24vbs Deadline: 10 Days

3. Read the Management Focus on Cemex and then answer the following questions:


a. Which theoretical explanation, or explanations, of FDI best explains Cemex’s FDI?


b. What is the value that Cemex brings to the host economy? Can you see any potential drawbacks of inward investment by Cemex in an economy?


c. Cemex has a strong preference for acquisitions over greenfield ventures as an entry mode. Why?


d. Why is majority control so important to Cemex?


Management FOCUS: Foreign Direct Investment by Cemex


In little more than a decade, Mexico’s largest cement manufacturer, Cemex, has transformed itself from a primarily Mexican operation into the third-largest cement company in the world behind Holcim of Switzerland and Lafarge Group of France. Cemex has long been a powerhouse in Mexico and currently controls more than 60 percent of the market for cement in that country. Cemex’s domestic success has been based in large part on an obsession with efficient manufacturing and a focus on customer service that is tops in the industry.


Cemex is a leader in using information technology to match production with consumer demand. The company sells ready-mixed cement that can survive for only about 90 minutes before solidifying, so precise delivery is important. But Cemex can never predict with total certainty what demand will be on any given day, week, or month. To better manage unpredictable demand patterns, Cemex developed a system of seamless information technology, including truck-mounted global positioning systems, radio transmitters, satellites, and computer hardware, that allows it to control the production and distribution of cement like no other company can, responding quickly to unanticipated changes in demand and reducing waste. The results are lower costs and superior customer service, both differentiating factors for Cemex.


The company also pays lavish attention to its distributors—some 5,000 in Mexico alone—who can earn points toward rewards for hitting sales targets. The distributors can then convert those points into Cemex stock. High-volume distributors can purchase trucks and other supplies through Cemex at significant discounts. Cemex also is known for its marketing drives that focus on end users, the builders themselves. For example, Cemex trucks drive around Mexican building sites, and if Cemex cement is being used, the construction crews win soccer balls, caps, and T-shirts.


Cemex’s international expansion strategy was driven by a number of factors. First, the company wished to reduce its reliance on the Mexican construction market, which was characterized by very volatile demand. Second, the company realized there was tremendous demand for cement in many developing countries, where significant construction was being undertaken or needed. Third, the company believed that it understood the needs of construction businesses in developing nations better than the established multinational cement companies, all of which were from developed nations. Fourth, Cemex believed that it could create significant value by acquiring inefficient cement companies in other markets and transferring its skills in customer service, marketing, information technology, and production management to those units.


The company embarked in earnest on its international expansion strategy in the early 1990s. Initially, Cemex targeted other developing nations, acquiring established cement makers in Venezuela, Colombia, Indonesia, the Philippines, Egypt, and several other countries. It also purchased two stagnant companies in Spain and turned them around. Bolstered by the success of its Spanish ventures, Cemex began to look for expansion opportunities in developed nations. In 2000, Cemex purchased Houston-based Southland, one of the largest cement companies in the United States, for $2.5 billion. Following the Southland acquisition, Cemex had 56 cement plants in 30 countries, most of which were gained through acquisitions. In all cases, Cemex devoted great attention to transferring its technological, management, and marketing know-how to acquired units, thereby improving their performance.


In 2004, Cemex made another major foreign investment move, purchasing RMC of Great Britain for $5.8 billion. RMC was a huge multinational cement firm with sales of $8.0 billion, only 22 percent of which were in the United Kingdom, and operations in more than 20 other nations, including many European nations where Cemex had no presence. Finalized in March 2005, the RMC acquisition has transformed Cemex into a global powerhouse in the cement industry with more than $15 billion in annual sales and operations in 50 countries. Only about 15 percent of the company’s sales are now generated in Mexico. Following the acquisition of RMC, Cemex found that the RMC plant in Rugby was running at only 70 percent of capacity, partly because repeated production problems kept causing a kiln shutdown. Cemex brought in an international team of specialists to fix the problem and quickly increased production to 90 percent of capacity. Going forward, Cemex has made it clear that it will continue to expand and is eyeing opportunities in the fast-growing economies of China and India where currently it lacks a presence, and where its global rivals are already expanding.


Sources: C. Piggott, “Cemex’s Stratospheric Rise,” Latin Finance, March 2001, p. 76; J. F. Smith, “Making Cement a Household Word,” Los Angeles Times, January 16, 2000, p. C1; D. Helft, “Cemex Attempts to Cement Its Future,” The Industry Standard, November 6, 2000; Diane Lindquist, “From Cement to Services,” Chief Executive, November 2002, pp. 48–50; “Cementing Global Success,” Strategic Direct Investor, March 2003, p. 1; M. T. Derham, “The Cemex Surprise,” Latin Finance, November 2004, pp. 1–2; “Holcim Seeks to Acquire Aggregate,” The Wall Street Journal, January 13, 2005, p. 1; J. Lyons, “Cemex Prowls for Deals in Both China and India,” The Wall Street Journal, January 27, 2006, p. C4; and S. Donnan, “Cemex Sells 25 Percent Stake in Semen Gresik,” FT.com, May 4, 2006, p. 1.


Hill, Charles W.L..Global Business Today, 7th Edition.McGraw-Hill Learning Solutions, 2012.<vbk:0077631471#outline(7.11)>.


Applied Sciences

Architecture and Design

Biology

Business & Finance

Chemistry

Computer Science

Geography

Geology

Education

Engineering

English

Environmental science

Spanish

Government

History

Human Resource Management

Information Systems

Law

Literature

Mathematics

Nursing

Physics

Political Science

Psychology

Reading

Science

Social Science

Home

Blog

Archive

Contact

google+twitterfacebook

Copyright © 2019 HomeworkMarket.com

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Top Essay Tutor
Helping Hand
Homework Guru
University Coursework Help
Best Coursework Help
Writer Writer Name Offer Chat
Top Essay Tutor

ONLINE

Top Essay Tutor

I have more than 12 years of experience in managing online classes, exams, and quizzes on different websites like; Connect, McGraw-Hill, and Blackboard. I always provide a guarantee to my clients for their grades.

$85 Chat With Writer
Helping Hand

ONLINE

Helping Hand

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$80 Chat With Writer
Homework Guru

ONLINE

Homework Guru

Hi dear, I am ready to do your homework in a reasonable price and in a timely manner.

$82 Chat With Writer
University Coursework Help

ONLINE

University Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$82 Chat With Writer
Best Coursework Help

ONLINE

Best Coursework Help

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$80 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

What is the slope of velocity vs time graph - Briefly describe how supportive and interpersonal psychotherapies are similar - Reynolds v united states 1879 - 3 questions - How to identify cations and anions in an unknown solution - In the beginning an introduction to archaeology 13th edition pdf - Determination of equilibrium constant for an esterification reaction lab report - El burlador de sevilla resumen - Jonathan swift writing style - Dr conquesta in colonial heights - Confined space training canberra - Deliverable 03 R&W - De-identification techniques in big data - Brindabella ranges corroboree frog habitat - Cyclone yasi wind speed - Software Reference Architecture document. - Harvey grammar school staff - Vsim skyler hansen answers - Assignment - Database design project proposal example - Bluecoat aspley uniform shop - What is a parallel shape - 15 5 mastery problem accounting answers - Determine the centroid x y of the shaded area - Journal Entry - Concept oriented reading instruction - Read vs readlines python - Gap model of service quality - Bias in the media essay - What is wacc and why is it important - Business intelligence question - Www selectmysubject com au student - Examples of ethical dilemma and ethical lapse - Is distance a vector or scalar - Content writing - Constructivism in science teaching - Naming aldehydes worksheet with answers - Genesis summary chapter 1 - Physics - Barton chart recorder calculation - Goodstart early learning policies - Financial statement analysis package fsap - For phd Isaac Newton - Pnf d1 upper extremity - Pearson education 2010 edexcel gcse science activity pack - The norton mix american history pdf - Managerial economics and organizational architecture 4th edition pdf - Short essay - Charlotte's web chapter 19 summary - Bottom plate fixing to concrete slab - Strategic group map craft beer industry - Baron maxime brut gold reserve 2016 price - MKT - Ucla physiological science courses - Essay - Saddle inc has two types of handbags - Death alone by pablo neruda - Pastor tony smith bio - Rms practice hazard perception test - Business Accounts - Dance review sample - Slope of total cost curve - Cloud computing business model ppt - Meadow green primary school - Bruce lee fighting spirit pdf - Employee rights in the workplace worksheet - Seven industrial wonders of the world panama canal worksheet answers - Parables from the outskirts of polite society - TEST 090820 - Money for nothing inside the federal reserve answers - Comparative and superlative worksheet - Speed distance time triangle - Bsbfim601 manage finances assessment 3 - Business benchmark 2nd edition - Dunkin donuts duties and responsibilities - Wilsons prom lighthouse bookings - Crate of bobbers squeaky duck - Cost accumulation job order costing - Scope of financial accounting - Doris is coming zz packer - The execution of wanda jean - Employee lookup fiori app - Campaign Plan - Extinction coefficient of dna at 260 nm - Objectives of teaching pronunciation - How does social media make the world bigger - Bibby baron and sons - Chapter 10-11 summary paper - MPM344-1304A-01 Project Risk Management - Unit 1 assignment 2 business - Week 6 DQ1 - Http purl org dc elements 1.1 - Philips chulha - Latin book of common prayer - West lakes shore primary school - High angle cable curl - Iv x pv factorial design example - What is the meaning of the word almah theo 104 - How are tv shows written in an essay - Unit 7 Journal