Cemex Business Analysis

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Cemex Business Analysis

Introduction

The performance of the cement industry is intertwined with the construction, an activity which in turn depends heavily on economic policy decisions, particularly investment because of the large amounts of capital necessary for cement manufacturers. Then include the magnitude of this company and how impressive is that this transnational company Cemex developed within local markets in the world through economic strategy (economies of scale and alliances) and so it grows this way. Its experience and development in the local Mexican market allows individual countries develop their strategy, managing to achieve successful results and reach your goals (Chung, Paddack, Marchand, 2003).

The company offers products of high quality construction and reliable service to customers and communities in America, Europe, Africa, Middle East and Asia. Its operations network produces, distributes and markets cement, ready-mix concrete, aggregates and related products in over 50 countries, while maintaining trade relations with about 100 nations. In this paper, I will be focusing on the micro and macro analysis, internal and external value chain prospects and possibilities of the company. This company has been characterized by bold impacts in various fields. Examples of this are that:

Cemex is leading the production of white cement in the world.

It is the first trader (trader) of cement.

Has developed the most advanced information technology in the cement industry.

Has shown exceptional creativity in solving their financing needs.

Maintains the lower operating costs in the industry.

Cement and construction

The performance of the cement industry is intertwined with that of the construction activity which in turn is closely linked to economic policy decisions, particularly investment because of the large amounts of capital necessary to cement manufacturers. Therefore, we can say that the cement industry is an accurate reflection of general economic developments so does the production and sales of product and vice versa. Cement and concrete are two elements that made up more than half of the inputs required in the construction, said the IMCYC at the event occurred in Mexico in June 2007 called World of concrete (Pounder, 2011).

So Cemex not only owns half of the cement plants operating in the country, which generate 63% of domestic production of cement, but also has one of the largest clusters of cement in the world, located in Baja California Norte, Mexico. The plant is 30 years old, owned by Cementos Guadalajara, a subsidiary of Cemex. Works at 100% capacity and employs more than 200 workers. However, this cluster performs all the state's production, which accounts for 2.36% of national cement production (about 640,000 tons per year). Yet despite the enormous potential of the cluster, Cemex has faced situations that have turned into weaknesses and threats, and thus there is a brief SWOT analysis:

Strengths

Its geographical location

BC is one of the largest exporters of cement to the East Coast of the United States.

Semi-automated technology

Opportunities

Benefit as a result of NAFTA (higher quality inputs at lower cost).

Strategic Alliances

Investment growth.

Weaknesses

Laws and regulations that hinder development.

High port fees.

Strategic points not connected to the rail network.

Remoteness of the sources of raw ...