09-039 March five, 2009
CEMEX: Globalization " The CEMEX Way”
Donald R. Lessard and Suspenso Reavis
When ever one desires to globalize an organization, especially when it can be from a developing country like Mexico, you really need to apply more advanced supervision techniques to do something better. We now have seen various cement businesses that use their capital to obtain other companies yet without making the effort to have a prevalent culture or common processes, they get stagnant. you —Lorenzo Zambrano, Chairman and CEO CEMEX On 06 7, 2007 Mexico-based CEMEX won many stake in Australia's Rinker Group. The $15. three or more billion takeover, which came up on top of the acquisition in 2005 from the RMC Organization – then this world's major ready-mix tangible company plus the single greatest purchaser of cement – made CEMEX one of the world's largest provider of building components. This growth also paid CEMEX's shareholders handsomely through 2007, although its reveal price got fallen precipitously in 2008 in response for the global recession and credit crisis in conjunction with the substantial financial power that had accompanied the Rinker purchase. CEMEX's achievement over the 12-15 years from its first foreign acquisition in 1992 to the Rinker purchase in 3 years ago was not simply noteworthy for the company located in an rising economy, nevertheless also in an industry in which the emergence of the multinational via an emerging economy (EMNE) as a world leader could not become explained by cost arbitrage; presented cement's low value to weight rate little product moves across national limitations. Much of CEMEX's success could possibly be attributed to how it looked over acquisitions, plus the post-merger the use (PMI) procedure that ensued, as a chance to drive change, and as a result, constantly evolve as being a corporation. Because it began globalizing its procedures in the early 1990s, the 1
Ruben Barham, " An Intercontinental Mix; ” Latin Finance, April you, 2002.
This case was made by Cate Reavis from released sources within the supervision of professor Donald R. Lessard. Professor Lessard is the Epoch Foundation Professor of Foreign Management. Copyright laws © 2009, Donald 3rd there�s r. Lessard. This kind of work is familiar with the laws under the Creative Commons Attribution-Noncommercial-No Derivative Works 3. 0 Unported License. To view a copy of this certificate visit http://creativecommons.org/licenses/by-nc-nd/3.0/ or send a letter to Innovative Commons, 171 Second Streets, Suite 300, San Francisco, Washington dc, 94105, UNITED STATES.
CEMEX: GLOBALIZATION " THE CEMEX WAY”
Donald Ur. Lessard and Cate Reavis
company was praised for its ability to successfully integrate it is acquisitions by, at one and the same time, bringing out best practices that had been standardized through the corporation and making a concerted work to learn guidelines from the bought company and implement these people where appropriate. Known inside as the CEMEX Approach, CEMEX standard business operations, technology, and organizational structure across all countries although simultaneously granting countries particular operational versatility, enabling them to react more nimbly to local operating environments. Additionally , CEMEX was known as a great innovator, especially in functions and advertising, and the CEMEX Way urged innovation, particularly if it could be utilized throughout the firm. For CEMEX, the causing innovation and integration process was a continuous effort as it recognized the cost of " constant improvement. ” The development of CEMEX's growing worldwide footprint as well as the associated learning process could be divided into several stages: Lounging the Foot work for Internationalization, Stepping Out, Growing Up, and Upgrading. (See Stand 1 . ) This case information how CEMEX has used its main competencies, in the beginning generated at your home, and enhanced these with learnings from new countries, to begin the cycle again. Table one particular CEMEX Internationalization Timeline
Stage Laying the Research
Key Steps in...