BUSINESS STRATEGY & ENTERPRISE MODELING

(MM5012)

Mid Term Exam

Eric Wilson Tanubrata - 29318350

GM 8

Question :
1. How did CEMEX create its uniqueness in the first place? (15%)
- Identify the cement market first (How CEMEX could enter the market using PESTEL &
porter five forces)
- Identify cement industry (Yang gue baca2 dari internet juga, mostly cement company
rely on supply, demand dan juga competitor mereka)
- Ini bisa gaksih ngomongin, mereka juga punya global strategy, akuisisi berbagai cement
company all over the world
Its international business strategy enabled CEMEX to grow rapidly during the 1990s and
early 2000s, when it became one of the biggest cement companies in the world. Setelah
mereka udah luas nih link-nya baru mereka berinovasi untuk memperkuat market
mereka
- CEMEX has broken the stereotypical mold in the association between an archaically
perceived industry and innovative technology. By integrating a well-defined information
system built upon the latest advancements in tech, CEMEX has become a powerful
leader in their industry. The man responsible for this redefining business plan is Lorenzo
Zambrano
- Cement innovation in cement market (Digital innovation, back-office system mereka)
Disini keliatan kan benefitnya apa, misalnya dari purchase cuma butuh 20 menit untuk
langsung deliver
- Result (CEMEX stand out dari industry, berubah dari konvensional ke digital business
model) CEMEX delivers its way to play by excelling at five differentiating capabilities.
- CEMEX also targeting low-income family (resulting a huge demand in not only mexico,
but dominican republic also (liat paper untuk jumlahnya)
- BARU DEH ENDINGNYA MASUKIN BLUE OCEAN STRATEGY (Yang mereka create
beda dari competitor adalah sustainable living for low income and Digital Innovation,
cemexnet kalo gasalah)
- Gambar ERRC

2. Is cement industry is still attractive or unattractive? Explain. (20%)

- Its still attractive if we could overcome these barriers :
Markets (demand, distribution, etc), Cost (Transportation cost, economic of scale, Valuation),
Competitors (Global competitors, Protecting patent if any, etc), Government (Taxes, regulation,
trade barriers)
- Future prediction (apakah global consumption of cement akan naik) Cement
consumption is expected to grow 2.3% in 2019 and 1.7% in 2020. Overall, slightly softer
economic growth, suggests a gentler interest rate pattern as well as slightly less robust
conditions in the labor market. https://www.cement.org/economics/forecasts
- Liat juga kenaikan valuta asing misalnya di daerah yang emang heavy production of
cement. Ini nanti pengaruh kan ke trade juga harga semen.
- Labor market juga di cek, apakah orang masih tertarik kerja di pabrik semen atau
dengan adanya start up jadi shifting…. Kan kalo demand konsumen naik, tapi supply
labor dikit nanti ada scarcity, better gmana. Apakah going digitalize/ automation to fill the
gap?
 - Kalau misalkan masih akan ada kenaikan, tentu masih ada room for improvement for
innovation (possible acquisition maybe)

3. How does CEMEX transform itself to a healthy company? Explain. (20%)

- Kita lihat dulu dari operationalnya gmana, kan berhubungan dengan finance juga tuh.
Intinya kan perusahaan mau maximizing operational efficiency. Gmana nih yang udah
dilakuin sama CEMEX
- The downfall of CEMEX tuh pas kapan, pas dia udah mulai kelilit debt kan, kalo gasalah
pengaruh resesi juga, jadinya mulai angot2an utangnya. Apalagi dia baru beli
perusahaan australia Rinker. Tambah angot.
- Cemex has been focusing on strengthening their capital structure and regaining financial
flexibility by reducing debt, improving cash flow generation, and extending maturities
- The company’s strategy emphasized improving profitability through efficient operations.
The company also shifted from selling products to selling complete solutions. By this,
CEMEX has established a very strong brand managed to translate it into extraordinary
profits from a commodity-driven business.
- Kasih liat deh revenue growth di tahun sebelum resesi sampai sesudah
- Ada deh paper yang bilang kalo revenue growth tertinggi dia itu di 2016, hampir 10x lipat
dari tahun sebelumnya

4. Develop completely the Strategy Diamond Model (Hambrick & Fredrickson, 2001) for
CEMEX. (25%)
Ya tau lah yah gambarnya kayak gmana tinggal dijabarin aja hehehe

5. How do you relate business strategy and business model of CEMEX? Explain. (20%)
Business model : Dia gue liat ada 2 strategy, blue ocean dan internalization
Business strategy: differentiation , dia menyediakan sesuatu yang unik