Cemex Globalisation

planetary Strategic Management Mini Cases Series CEMEX Global Expansion From a relatively modest Mexican family-owned conglomerate, CEMEX was since 1996, the tertiary largest cementum caller-out in the world measured by cement doing capacity. Having completed the acquisitions of Southdown in the USA and RMC in the UK, the mathematical group was a well established three-legged player in America, atomic number 63 and Asia. However inter home(a) competition was tough and CEMEX was not positioned in the two emerging ogre markets of China and India. CEMEX outline to last one of the leading players in the world of cement took tail in three study steps: (1) consolidating its front the Mexican market, (2) inter subject fieldization, (3) global management 1) Mexico In1985, when Lorenzo Zambrano was appointed to head CEMEX, the company was reasonably some(prenominal) as any other developing farming conglomerate. Founded in Mexico in 1906, CEMEX had grown from a regiona l cement maker to a diversified group of companies with interests in tourism, oil garble and mining projects, and was listed on the Mexican stock exchange. The signing of the GATT agreement in 1985 turned Mexico, the worlds 13th largest cement consumer, into an open marketplace and at the same time an educe expansion terrain for cement multinational companies (MNCs).

The demographics, the attractive market characteristics and the holler infrastructure development all gave Mexico a huge harvest-feast potential. With the increased competition from more efficient international players, a consolidation movemen t was inevitable. Zambrano implemented a ! deliberate strategy to make cement its aggregate business. CEMEX divested most all non amount cement related businesses, reinvesting the proceedings into cement assets. It acquired the two major(ip) cement manufacturers in Mexico, thus becoming the main national player and the tenth largest cement company in the world. 2) world-wide Cement is a very cyclical industry and the front line in several countries with...If you want to get a safe essay, order it on our website: OrderCustomPaper.com

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