THE GLOBALIZATION OF CEMEX Harvard Case Solution & Analysis

THE GLOBALIZATION OF CEMEX Case Solution

Introduction:

The purpose of this case study is to identify and realize the main contributors and critical success factors of the cement industry as a whole as well as the performance of the Cemex Company. The analysis of the organization will involve identifying the strengths, weaknesses, opportunities and threats for the business that the management of the organization must understand and attend in order to protect the long-term interests of the business in the markets it operates.

The paper will also identify the core competencies and the critical success factors for the organizations in the industry in order to facilitate the readers and shareholders in understanding the core operations areas and driving forces of the performances of the businesses in the industry. This will also assist the management of the company in identifying their core competencies and promoting or sustaining efficiency and effectiveness in them.

Question 1:How global is the cement industry? What main factors/forces drive or impede its globalization.

Answer:

The cement product was first discovered in the United Kingdom in the early 19th century and due to its quality in terms of firmness and the easy to make process, it became widely accepted and required ingredient in the construction by the population all over the world. The globalization of the cement industry has been mainly due to the modernized and sophisticated forms of construction requirements that the historical methods of construction or the products used for the construction cannot fulfill.

  • Rising needs and adoption of population all over the world.
  • Efficient and effective globalized supply chain of the industry.
  • Increasing competition.

Rising Needs and Adoption of Population All Over the World:

The rising needs and adoption of the societies and population all over the world have been one of the most critical elements of such fast paced expansion and presence of the cement industries and organizations all over the world including the developing and the developed nations. It can be clearly understood by a certain fact that the need for a product in the market is the cause or critical factor for its market penetration in any region.

The organizations cannot succeed in penetrating the market and gaining benefits from it if the product has no need for the population and customer base of the market irrespective of the industry or mode of products of the organization. The globalization of the cement industry is due to the transformation that it has brought in the construction industry and the quality of the constructed assets that it brings with itself along with the simplicity that it provides for construction.

The most critical reason for such massive transformation and adoption of the population towards cement has been due to the firmness and compactness that it provides while used with steel in the form of concrete. The other element is the simplicity of the process of making cement by mixing it with water and sand.

Efficient and Effective Supply Chain of the Industry:

The other most critical element that has contributed and supplemented the globalization of the cement industry is the efficient and effective supply chain that the management of the organizations of the industry has been able to adopt and implement while operating in their respective markets.

This is also the case with the multi-national organizations of the cement industry like the Cemex organization which operates in multiple markets all over the world. The most critical element that has supplemented these efforts of the management of the companies is the availability of the raw materials in the local or domestic markets of the region in which the company is operating...........................

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