1.What are the challenges facing CEMEX as it integrates with Rinker?

The competing demands in the IT group and unfinished integration work with RMC.

2.What are the advantages/disadvantages of preserving The CEMEX Way model in the
integration of Rinker?

What are the advantages/disadvantages of migrating to the Processes and IT (P & IT) model?
The CEMEX Way has been used for many years and proved that it reduced the duration of PMI
process from 25 months to less than five. The company has much experience in using the CEMEX
Way. Meanwhile, due to the effective learning process and fewer culture integration challenges
of Rinker, the CEMEX Way can be more easily applied in the integration process. But the CEMEX
Way also involved teams composed of experts in IT, the competing demands in the IT group
would impede the integration.

P&IT could reduce technology risks, lower the cost and better align IT initiatives with the business
strategy. On the other hand, the new IT organization help to manage the business, provide
specialized resources and accelerate process acquisition. However, P&IT model needs much more
upfront investment and fixed costs because of the replacement of the teams from operations
under the CEMEX Way. At the same time, company would need more facility space and find it
hard to employ the right staff. Also, P&IT model could be more risky since the operations scale of
CEMEX expand.

3. Which model do you recommend for the integration of Rinker?

I would recommend P&IT model. Since CEMEX is still expanding its worldwide market, it would
face integration of other companies in the future. It’s necessary to have a specialized and
permanent implementation teams to confront different situations and companies. Although it
would require significant investment and increase fixed costs, the expenses would not be
required for another time once the team is established. As it manage the business, provide
specialized resources and accelerate process acquisition, P&IT model could bring more profits in
the future.