CEMEX: TRANSFORMING TRANSFO RMING A BASIC INDUSTRY INDU STRY COMPANY COMPANY
Submitted To: Dr. Rameshwar Dubey Submitted By: Nirja Desai(036)
EXECUTIVE SUMMARY
Founded in e!i"o in #$06% &'' today has dee*o+ed a hi,h*y su""ess-u* brandin, +ro,ram that in"*udes oer 000 inde+endent retai*ers and e!+anded its +rodu"t *ine to "onstru"tion materia*s beyond "ement. /t is one o- thewor*ds *ar,est ready mi! "on"rete "om+any with its o+erations s+read a"ross the ,*obe(Thai*and% 'uro+e% hi*i++ines% ',y+t%et") 1s &'' moed to more distant mar2ets% the arious sta,es in the e!+ansion +ro"ess o++ortunity identi-i"ation% due di*i,en"e% and +ost4mer,er inte,rationbe"ame more -orma*i5ed and ,reater attem+ts were made to standardi5e them% re-*e"tin, +ast e!+erien"es. The "ase throws o+en the dis"ussion on how -ar &''s "om+etitie adanta,e "an trae*. /t raises 7uestions oer "han,es that hae been im+*emented oer the *ast -ew years and i- more e--orts need to be ta2e to enhan"e the +osition in the bu*2 "ement "ommodity se"tor.
CASE ENVIRONMENT AND ANALYSIS
This "ase be,ins with a "om+etition within it.
brie-
oeriew
o-
the "ement industry and internationa*
/t then des"ribes the ,*oba*i5ation o- &'' and how it was
mana,ed. /t ta*2s about eo*ution o- &'' -rom a sma** *o"a* +*ayer in #$06 to one o- the *eadin, bui*din, so*utions "om+any. /t ta*2s about the "om+anys strate,y to ,row throu,h a"7uisitions. &'' was e!treme*y su""ess-u* in inte,ratin, a"7uired "om+anies by usin, te"hno*o,i"a* and mana,eria* +ro"esses% dee*o+ed and +roed in e!i"o% to "ut down "osts% im+roe o+erationa* e--i"ien"y and im+roe "ustomer seri"e. The "om+any -o"ussed on estab*ishin, the "om+anys brand in "ommodity mar2ets. Strate,i" and se*e"tie e!terna* "o**aborations are the 2ey to &'' su""ess. &'' initiaties: +roidin, added a*ue to "ustomers #) &onstru"tion So*utions &'' dee*o+ed a method to a""e*erate "onstru"tion -or *ow4in"ome housin, dee*o+ments. This initiatie he*+ed the "om+anies in ta"2*in, *abour shorta,e% "ut their "osts by about #8+er"ent and redu"ed "onstru"tions time by about ha*-. ar2etin, o++ortunities: &asts whi"h "ou*d e!+edite "onstru"tion +roje"ts "ou*d be used by se*-4 •
•
"onstru"tors &o**aboratin, dire"t*y with +roje"t owner and ar"hite"t by he*+in, out in desi,n and bui*d +ro"ess.
) &onstru"ard &'' introdu"ed a "redit "ard% 9&onstru"ard% in +artnershi+ with ;' &a+ita*. &ustomers who wished to bui*d or e!+and homes but "ou*d not ,et any -inan"in, were the +otentia* "ustomers. 3) atrimoniyo ) &onstrume! e!i"ans wor2ers in =S sent money ba"2 home to -ami*ies% whi"h were *ater used -or +ur"hasin, "onstru"tion materia* -or bui*din, homes. This ino*ed *ar,e transa"tion "osts and +roided no ,uarantee that money wou*d be used -or bui*din, homes. To ta+
this se,ment &'' introdu"ed &onstrume!. =nder this s"heme wor2ers were "har,es minima* ?# seri"e "har,e and &'' +roided "onstru"tion materia* to -ami*ies a*on, with te"hni"a* adi"e. This s"heme was a su""ess and was aai*ab*e to wor2ers in &a*i-ornia% Te!as and /**inois. @ey stren,ths uti*i5ed by &'' in enhan"in, its mar2et +osition and +ro-itabi*ity #)
&u*ture o- te"hno*o,y and innoation /n res+onse to the *owerin, o- trade barriers in e!i"o% &'' rea*i5ed the im+ortan"e o- bein, e--i"ient in order to "om+ete with *ar,e -orei,n "om+anies. &'A ambranos "ommitment and hands4on interest in /T *ed to the "om+anys bein, "anoni5ed as a master o- 9di,ita* business desi,n. Some o- the a"tion +*ans as *isted be*ow: &reated a sate**ite system to *in2 the trans-erred interna* oi"e and data •
•
• • •
)
"ommuni"ations to its own +riate networ2 /m+*ementin, '!e"utie /n-ormation System whi"h enab*ed o+erationa* trans+aren"y &onne"tiity ia internet to distribution and su++*iers &han,es in 'R system to hand*e new +rodu"t *ines Co,isti"s Te"hno*o,y roadma+ +roidin, too*s that addressed a** o+erationa* a
/m+roin, interna* o+erations /ntrodu"tion o- "ontinuous im+roement +hi*oso+hy Dramati" "han,es in the way the "om+any addressed its mar2et and su++*y • •
"hain mana,ement. Stru"tura* "han,e to enab*e de*iery o- the +rodu"ts as +er the "ustomers wish. 1n internet based 9Co,isti"s =niersity was estab*ished to ensure that the em+*oyees •
were we** a"7uainted with so+histi"ated too*s. &ourses dea*t with +o*i"ies% *o,isti"s +ro"esses% mana,ement and administration% inentory% trans+ortation% systems and or,ani5ation. &'' +aid attention to ea"h and eery se,ment o- the so"iety% be it end user or retai*ers. The -o"us was on he*+in, the "ustomer with any o- their +rob*ems whi"h wou*d *ead to in"reased sa*es o*ume. Fo**owin, are some o- the ste+s em+*oyed: A--erin, to mana,e inentory -or bui*ders.
and De*iery isibi*ity System Driers -or "han,e: Bu*2 &ement
Eith its "urrent +ositionin, the "om+any need not -o"us on brand mar2etin,. Dee*o+in, "ountries +roide ,reat o++ortunities in the -orm o- -orma* in-rastru"ture dee*o+ment su"h as roads% s"hoo*s% water treatment +*ants or hos+ita*s. /ntrodu"in, e!istin, initiaties and s"hemes shou*d he*+ in winnin, "ustomer su++ort. ;reater isibi*ity to ready4mi! (bu*2) is another drier. &om+any "an ta2e adanta,e o- this o++ortunity by +ortrayin, itse*- as a "om+any with the abi*ity to de*ier +rodu"ts as +er "ustomers wish (*o"ation and time). Stron, *o,isti"s ho*d and standardised +ro"esses are an ed,e whi"h the "om+any has oer other "om+etitors. /m+*ementation o- "han,ed +rodu"t *ine in the in-ormation system wou*d enab*e smoother -un"tionin, o- the su++*y "hain and ada+tabi*ity to "han,in, demands.
Conclusion
&'' needs to stri2e a ba*an"e between the +rodu"t o--erin,s that satis-y short term mar2et demand and those that are o- more im+ortan"e in the *on, run. &om+any needs to be a*i,ned with the sustainab*e "ha**en,es su"h as ener,y e--i"ien"y and emission redu"tions -a"ed by the "ustomers.
