CEMEX ventures

CEMEX ventures

CEMEX ventures

Introduction

Spanish explorers minutely examined Mexico looking for metropolises of gold. But it was wrong place they were looking in. Central Mexico hills, in the outskirts of Puebla City, are definitely filled with wealth potential --but of a rather less glamorous sort. One requires grinding the limestone the hills are made of in to a fine sand, mix it with clay and gypsum at extreme temperatures, store the outcome in bags, and sell it. At Tepeaca, the western hemisphere's largest cement plant, CEMEX, a Mexican cement firm, does just this, grinding out 7,200 tonnes a day.

Analyses

Question 1

In May 2000, CEMEX was preparing to expand through acquisitions in Asia, Africa and the Middle East. What kind of global giant do you think Lorenzo Zambrano wanted the firm to become? Using module theory and evidence from the CEMEX case study, critically evaluate his chances of success?

CEMEX cement factory originates from Mexico being formed in 1906 the company now is the biggest cement factory of the world. The case study indicates the journey of CEMEX beginning from the neo-natal stages and moving to become an independent, confident and mature organisation. The journey is full of explorations and ventures by utilising their core competencies and applying their strategies of excellence the workforce which has helped them nurture their dreams.

In May 2000, CEMEX decide to extend its operations globally. This was a very crucial decision on the part of Lorenzo Zambrano, the CEO and Chairman of CEMEX. The decision meant just more than a globalisation desire for the organisation, it was a test for CEMEX as it was entering the global market. But CEMEX proved up to the mark and achieved global acceptance and triumph. Now CEMEX is the America's 2nd largest and world's 3rd largest company with the capability to produce 96 million metric tons of cement, adequate to place them as the major player in world cement market.

The strategies and concepts that Lorenzo Zambrano applied require close analyses, so that one can get a glimpse of what was on Zambrano mind when he decided to globalise. Some key features that were the core-competencies of CEMEX were their fire for extended innovation and eagerness to exceed and high level of dedication toward customer servicing. Zambrano had a complete judgment of his company's abilities, he knew the efficient production capacity of CEMEX, their digital evolution and modern technology adaptation. Zambrano was also keen to utilise distribution and delivery process powered by its advanced information transfer systems. (Millman, Joel 2008)

For global company such as CEMEX, having functions, and working through offices, branches and plants in two or more countries, deciding to expand through skills and manpower was an exciting big challenge for Zambrano as a head of CEMEX and his companions. It was a proving time for all the management the country-level managers, vice presidents and regional managers.

It was definitely in the mind of Zambrano to globally expand CEMEX functions in order to avail more opportunities to not only explore fresh markets, ...