Cemex and Antidumping Harvard Case Solution & Analysis

Identify problem

The major problem that has been identified in the case “Cemex and Anti dumping” is the fact that the leadership of Lorenzo Zambrano, Cementos Mexicanos, SA (Cemex) has been the largest cement manufacturer in the North American market and it is also the world’s fourth largest manufacturer in the world.

Being a part of the globalization strategy, Cemex has expanded itself in the country where it has built terminals and exporting cement from Mexico. Producers in the United States have been countering with an anti dumping petition under the Section 731 of United States trade law, complaining that their sales have been restricted because of the imported cement.

Along with this, the current situation presents that the cement market and the administrative process has resulted in a duty of 58% on Cemex imports. The above discussed have been the major problems that have been identified in the case. Along with this, Cemex had issues of stranded assets in distribution and terminal facilities in the country.

Prioritize problems

            The most obvious problem within the case has been the that the producers in the United States have been countering with an anti dumping petition under the Section 731 of United States trade law, complaining that their sales have been reduced and hurt because of the imported cement. Secondly, Cemex has been facing the issue of stranded assets in the distribution channel. Finally, the cement market has been imposed a duty of 58%.

Specify the criteria used to choose action

The decision criteria have been developed where the variables that have been included in the paper to analyze the alternatives are as follows. The alternative needs to be aligned with the objectives of the company. It should increase the revenues for the company. By opting for the alternative it should increase the level of customer satisfaction. Finally, abide the rules and regulations of the government.

Discover or invent feasible actions alternatives

The alternatives that can be used to overcome the issue presented in the case are as follows.

      Merge with a local player in the United States market

      Expand itself in the Asian market

      Follow the Anti dumping rules and regulations

Examine the probable consequences of action alternatives

Merge with a local player:

            Based on the problems that have been identified in the case, the first alternative for Cemex would be to merge itself with a local player in the United States cement industry. The reason for this alternative is solely dependent upon the fact that once Cemex shall be able to merge itself with a local player. Along with this, the government rules and regulations regarding the antidumping law would help the firm expand its reach in the United States market.

            The disadvantage of this alternate is that it would make Cemex dependent upon the new partner to drive the sales in United States market. Being one of the largest manufacturers of cement in the world, this move would make the company lose its credibility in the market.

Expand itself in the Asian market

            The second alternative for Cemex would be to expand itself in the Asian market. As for now, the sales for the company have been hindered in the United States market; therefore, to sustain its revenues and profits in the cement market of the world, the company needs to expand itself in new markets.

            Therefore, Cemex should expand itself in the Asian market which holds quite a large number of customer bases and untapped market. The disadvantage of this alternative is that the company has not been a part of the Asian market; therefore it shall face issues regarding the culture, business ethics and norms of the new geographic location.

Follow the Anti dumping rules and regulations:

            The third alternative solution for the company Cemex is to actually follow the rules and regulations that have been set by the United States anti dumping agency. The reason is simple; the current situation indicates that Cemex has been involved in the violation of anti dumping rules and regulations within the cement industry of the country.Cemex and Antidumping Case Solution

            Therefore, in the future to stay competitive and to overcome any such allegation in the future, the company should follow the anti dumping rules that have been set by the industry, which needs to be followed by the Mexican firms also....................

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