Cemex internal analysis

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Internal Analysis

Due date: August 28, 2010
Submission date: August 29, 2010

Introduction
The challenge for any multinational company is not only to remain in the global market but to growand offer a competitive advantage over its competitors. In order to achieve these goals the companies must be prepared to face certain obstacles that may come along. CEMEX is a Mexican cement companythat began its internationalization in the 1970s with exports, principally to the United States, after the imposition of trade sanctions by the latter CEMEX incorporate foreign direct investment to itsstrategy, focusing on acquiring existing capacity rather than building new plants.

By the end of 1999, CEMEX became the third largest cement company in the world in terms of capacity and thelargest international trader. CEMEX has managed to attain a high level of operational efficiency throughout its distributed operations without a complex organizational structure. However, increasingcompetition could affect the position of the company.

Major companies ruling the cement industry by 1999:
Holderbank
Lafarge
CEMEX
Heidelberger
Italcementi
Blue Circle

This report willfocus on the internal environment (strengths and weaknesses) of CEMEX to provide suggestions to improve its competitiveness.

STRENGTHS:
Marketing capabilities:
Marketing campaigns promoting theguarantee of 20 minute delivery went up customer willingness-to-pay.

Management capabilities
Cemex´s organizational structure differed in important ways from its competitors Country-level managersreported directly to regional directors. The plants were organized into 7-9 departments, each with its own vice president, every month the vice presidents reported to the country president. . At thetop of the structure is the CEO, Lorenzo Zambrano, he and his executive commitee met with country presidents and regional directors every month. Other global competitors held meetings less...
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