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cemex

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thomas tafanelli

on 27 February 2013

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Transcript of cemex

MANGIN François
PRAUD Maud
TAFANELLI Thomas
ANGIBAUD Nicolas
TANGARIFE Maria Isabel
YING Chen Consultant Team : CEMEX’S COST OF ‘GLOBALISED’ GROWTH – THE CASH CRUNCH? # WHAT ARE WE GOING TO COVER TODAY ? PRESENTATION ORGANIZATION #1 COMPANY SUMMARY #2 STRATEGY #3 ACQUISITION #4 RECOMMENDATIONS #1 COMPANY PRESENTATION STARTING WITH HISTORY 1906 Cementos Hidalgo established, begins operating cement plant.
1920 Lorenzo Zambrano open cement plan named Cementos Portland
1931 Cementos Hidalgo & Xcementos Portland merged into Cemex
1976 Cemex goes public, become largest cement maker in Mexico and acquire Cementos Guadalajara
1985 Grandson founder name Lorenzo Zambrano as a CEO and have ambitious program expansion.
1989 Acquisition of Cementos Tolteca, give Cemex 65% Mexican market
1992 Buys 2 largest cement company in Spain, Valenciana and Sanson
1994 Controlling stake in Vencemos (Large cement company in Venezuela)
1995 Expand to Dominican Republic and Caribbean market
1996 Expand to Colombia and Panama to consolidate Caribbean market
1997 Take its first direct investment in Asia, purchasing 30% stake in Rizal Cement Company, Inc. of the Philippines
1999 Majority stake in Assiut Cement Company, leading cement market in Egypt.
2000 Houston Based Inc. (Second Largest U.S. Cement producer acquired
2002 Write-down from currency-hedging operations foreshadow company loss, Expand Puerto Rico.2005 Acquisitation RMC that enhaced its position to world 3rd producer of sement
2007 Acquires Rinker, Australian company with major operation in US
2008 Stocks crumble as cement sales decline, company in huge debt crises trying to refinance. P E S T E L #Different countries policy about FDI
#Trade barriers P E S T E L # Economic Recession in US and Europe
# High growth Emerging market BRIC
# Different market demand between developed and developing country P E S T E L #Different culture and language
#Community contribution
#Social Media P E S T E L #ICT innovation and development
#Real time and direct communication P E S T E L # Climate change (rehabilitation, air pollution, waste mgt)
#Alternative fuels and renewable energy energy P E S T E L # CSI (Cement Sustainability Initiative) for audit global carbon emissions
# Health and safety work
# Regulatory by national and regional trade associations such as the European Cement Association (CEMBUREAU) and industry forums such as the World Business Council for Sustainable Development (WBCSD) and the Portland Cement Association PORTER'S 5 FORCES # PRODUCTS CEMENT READY MIX AGGREGATES CONCRETE # CORE COMPETENCY CORE COMPETENCE + Low Cost Production
+ IT leadership DISTINCTIVE COMPETENCE + Relationship with clients
+ Delivery time
+ Client Satisfaction assessment system ORGANIZATIONAL COMPETENCE + Logistic
+ People
+ IT and Knowledge Management SUPPORTIVE COMPETENCE + Post-Acquisition integration team
+ Frequent trainings+ Standardization of proesses through IT S W O T STRENGTHS + International diversification
+ Balanced sales
+ World-class cement producer
+ Vertical integratioh WEAKNESSES + Dependency on weather conditions
+ US$ denominated debt
+ Mexican governmental regulations OPPORTUNITIES + Cemex Ready Mix USA joint venture
+ Reduction of antidumping duties
+ Mexican positive demographics
+ LT growth markets
+ New Mexican housing law
+ Cost synergies THREATS + Competition against major players
+ Risks associated to RMC integration
+ Political instability
+ Rising costs of basic inputs
+ Global recession
+ Higher exposure to the US market #2 STRATEGY Focus on core business of cement, ready-mix concrete, and aggregates.
+
Provide customers with the best value proposition.
+
Strengthen capital structure and regain financial flexibility.
+
Maximize operating efficiency.
+
Recruit, retain, and cultivate world-class managers.
+
Foster sustainable development. BUSINESS STRATEGY Cemex business strategy is a combination of DIFFERENTIATION and COST LEADERSHIP strategy. #3 ACQUISITION Both horizontal AND vertical scope of the firm INCREASED through ACQUISITIONS #1 An increase on the company’s profits
#2 An increase on the company’s assets
#3 Maximized their operating efficiency
#4 Economies of scale
#5 Powered their human resources force BENEFITS... CEMEX INTERNATIONAL STRATEGY INDUSTRY LIFE CYCLE Cemex is in the mature stages due because the sales are stagnant. #4 RECOMMENDATIONS + Renegociating debth
+ Selling assets
+ Developing Asian and the Middle East market
+ Innovate ACQUISITION ACQUISITION STEP PRA MERGER ACQUISITION POST MERGER ACQUISITION CEMEX WAY THANKS FOR YOUR ATTENTION
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