MANAGEMENT

CEMEX



CEMEX

Part-One

The problems that are cited in the case are related to the employees and knowledge management. Since CEMEX had planned on going global and was growing in the developed markets; it had problems in relation to shifting from the kind of norms that the company had when it comes to carrying out day to day operations, to a newer set of norms. The employees were conditioned to the way operations were conducted and consequently, were producing results in an effective and efficient manner but when it came to improvement of the working operations there was a certain sense of hesitance in the employees . The kind of corporate culture CEMEX had was way much different than the corporate culture of Texas-based Southdown. In order to ensure that this problem is solved CEMEX ensured that the employees of Southdown were invited to be a part of the PMI team and simultaneously aid in the rendering the processes and the usage of information. They were chosen since they were more open to continuous improvement. The processes were improved and CEMEX's practices were adopted.

Second problem discussed was related to the production system whereby the production levels were not known and whether production benchmarks were achieved. In order to ensure that it is known EIS was developed which aided in conducting inspections virtually to know whether the production benchmarks have been met. Recommendations are to consistently upgrade and have consistent improvement and innovation and incentive based performance for the employees to quicken adaptation.

Part Two

The key stages when it comes to CEMEX is pre-acquisition which was said to be due to high level of diligence, targeted negotiation, open announcement followed by a close. The second stage that CEMEX has is foundation building whereby there is a launch, and then there is workout of acquisition integration ...