GROUPS 3, 6 and 13

BAM 2204- STRATEGIC MANAGEMENT

CLASS CASE STUDY
Cemex: A Mini-Case
Cemex is the third largest cement company in the world behind France’s Lafarge and
Switzerland’s Holcim and the largest producer of Ready-mix, a prepackaged product that
contains all the ingredients needed to make localized cement products. In 2005, Cemex
acquired RMC for $4.1 billion. RMC is a large U.K. cement producer with two-thirds of its
business in Europe. Cemex was already the number one producer in Spain through its
acquisition of a Spanish company in 1992.

In 2000 Cemex acquired Southdown, a large manufacturer in the U.S. Accordingly, Cemex
has strong market power in the Americas as well as in Europe. Because Cemex pursues a
global strategy effectively, its integration of its centralization process has resulted in a quick
payoff for its merger integration process. To integrate its businesses globally, Cemex uses the
Internet as one way of increasing revenue and lowering its cost structure. By using the
Internet to improve logistics and manage an extensive supply network, Cemex can
significantly reduce costs. Connectivity between the operations in different countries and
universal standards dominate its approach.

REQUIRED
ASSIGNMENT ONE (5 MARKS)
1. Perform a SOWT analysis for this company and explain what would be the effect of
research on the firm’s competitive advantage. (6mks)
2. Explain any three strategic issues that would face this company if it were to expand into
Kenya. Give reasons for your answer. (4mks)

ASSIGNMENT TWO (5 MARKS)

3. Discuss any three strategies the company has adopted to enhance its success at home and
aboard. (6mks)
4. Explain four ways that the company could have used the Internet for its competitive
advantage. (4mks)