IBTISAAMA YAHAYA AHMED
Cement industry is one of the most attractive industries now as concrete is the second most consumed product in the world. The cement industry is however characterized by their pricing system (basing point system), its cartel nature and its entry restrictions. The CEMEX case depicts the good business strategies, excellent leadership and how to be successful in the global market. The interesting aspect of the case is how CEMEX maneuvered in to the global market and was recognized as the third largest cement company. Thus, how it overcame the issues of trade sanctions, the crisis in its operating countries, its acquisition strategy etc. is astounding. CEMEX really understood the concept of globalization and International management.
One major benefit why firms like CEMEX will like to go global is to increase their profitability. Exhibit 9 of the case study shows that the operating margin, the EBITDA margin and the EDITDA OF CEMEX kept on increasing. For instance, the EBITDA margin increased from 28.6% in 1998 to 37.1% in 1999. This is highly due to the increase in revenue from the sales of the firm’s products in other countries. You could also see that sales kept on increasing from 1989-1999. Looking at the total sales of CEMEX one will realize that the US accounted for 12% of sales and 7% of EBITDA and it applies to the other countries that CEMEX and the other majors engaged in.
Furthermore, the cement industry and specifically CEMEX could reduce
Pecom, compañía petrolera de Argentina, desde sus inicios fue ganando terreno en la industria del petróleo avanzando a buen ritmo a través del paso de los años. Desde la obtención de su primera concesión, hasta el inicio de operaciones en diversos países sudamericanos, Pecom se fue consolidando como una empresa fuertemente integrada verticalmente.
There are many benefits of a global market. One major benefit is improved outsourcing. Outsourcing is basically contract work. They do
The reasons for choosing continental European as a global location for Whelan Pharmaceutical as follows:
1. What benefits have CEMEX and the other global competitors in cement derived from globalization? More broadly, how can cross-border activities add value in an industry as apparently localized as cement?
As argued by Eaton (2001), globalization is an enterprise management feature, which increases liberalization of international trade and international competition. Needless to say, nowadays most of senior managers tend to plan their companies to go worldwide. In the early 1970s, M&S expanded its international operation to purchase a 50 per cent shareholding of three Canadian companies for the first step. In November 1997 the company announced a 2,100 million GBP plan for global expansion which would be across Europe, the Far East and the Middle East (Bevan, 2002).
Questions: 1. What benefits have CEMEX and the other global competitors in cement derived from globalization? More broadly, how can cross-border activities add value in an industry as apparently localized as cement?
Aget should also divide the market in different segments. Every segment probably wants a different kind of cement, but probably also a different kind of service. So Aget has to give the right service to the right segment of the market. So it’s important that they adjust their service for their different costumers. Aget should also look for new kind of cement. By investing in research and development in order to be one step ahead of the competition. This all will lead to a good customer relationship and customer loyalty.
Aumentar el volumen de producción y venta, y crecimiento: Cemex tenía necesidad de expandirse globalmente, dado que su mercado doméstico en México es relativamente pequeño y que en 1989, la empresa ya dominaba 2/3 de la capacidad productiva donde le quedaba poco espacio para crecer . Además, la entrada de Holderbank en México al principio de los 90`s le generaba una fuerte presión competitiva, siendo que esa empresa ya tenía una presencia global importante.
What benefits have CEMEX and the other global competitors in cement derived from globalization? More broadly, how can cross-border activities add value in an industry as apparently localized as cement?
Energy market of UK was a monopoly market, then it turned into a competitive market. Doing business in a competitive market is not as easier as we think. Here, this change lead huge changes inside and outside of the company. Now the question how well a company can sustain with the recent positioning in the energy industry. For describing all the truths, this report has been prepared. This report will analyze “how changes in the competitive environment have changed to give CENTRICA with a more robust competitive battleground”, “strategic decision making regarding how CETRICA’s organizational environment and framework matched with the new market conditions”, “3 dimensional strategic analysis including financial strength, relative market strength and relative market share”, “understanding the industry CSF’s by CENTRICA, fast mover and advantage”, “product/ process innovation” and “sustaining competitive advantage regarding the long term competitive advantage”. After covering these topics, it is expected that this report will be able to give a deep study about the assigned topics.
Globalization offers industries many ways to increase their profits. Since businesses and corporations have access to a wider range of potential clients, they have a chance to increase profits. Global competition also
Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.
Reasons why corporations like PepsiCo. need to globalize their operations include a need for competitive advantage against rivaling companies, increase their economies of scale to lower their production and distribution costs in moving products into new and existing markets, entering new markets to increase brand image and brand loyalty, and to increase net earnings which can then be distributed as dividends for their stockholders.
There are various factors that play a critical role in GlaxoSmithKline’s foreign market expansion and international operations. These factors are based on the SWOT analysis in appendix 1. A SWOT analysis, also known as situational analysis, is a strategic analysis tool that evaluates the position of a firm by identifying strengths, weaknesses, opportunities and threats. According to Daniels, Radebaugh and Sullivan (2014,) SWOT analysis forms the basis of strategic planning when firms engage in international operations. A good strategy is one that focuses more on exploiting strengths
However, MacDowell Corporation believes that changing the relationship with San Fabian Supply Company will make it benefit more. On one hand, MacDowell has been marketing its products through an exclusive distributor only in the Philippines and the parent company wants to market the products same as in other countries. On the other hand, the demand for construction materials has decreased since the expansion of its plant in the Philippines before. MacDowell Philippines’ plant operating rate was very low, at only about 45% capacity, and the overcapacity plagued the company a lot. To get rid of this situation, MacDowell Philippines wants to increase sales and its new president believes that having more dealers can lead to more sales. So MacDowell wants to change the relationship with San Fabian Company in the