Cemex Case Study

Mexico’s largest cement manufacturer, Cemex, has become a global powerhouse in the cement and construction industry. It currently controls 60 percent of the cement industry in Mexico (Hill 2009). Cemex’s success is a result of a combination of efficient technology such as radio transmitters, satellites, and computer hardware that allow the company to anticipate changes in supply and demand and reduce waste.

Cemex’s success is also a result of an attempt to dominate the industry by acquiring and buying out competitors worldwide in order to expand. a.Which theoretical explanation, or explanations, of FDI best explains Cemex’s FDI? I believe that internalization theory best explains Cemex’s FDI because Cemex has taken the initiative to enter into many countries and instead of licensing; they bought domestic cement businesses and have grown into a worldwide powerhouse.

According to the textbook, internalization theory explains why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets (Hill 2009). With the advanced technology that Cemex uses, so licensing would not be the greatest avenue for the company to take in order to protect it’s “technological know-how” (Hill 2009). b.What is the value that Cemex brings to the host economy? Can you see any potential drawbacks of inward investment by Cemex in an economy? Cemex is the third largest cement company in the world, and a powerhouse in Mexico where it controls 60 percent of the market.

Cemex is highly focused on efficient manufacturing and customer service. Distributors are rewarded for their sales, as are users. The primary benefit Cemex brings to host countries involves these competitive advantages. Cemex acquires companies and then transfers technological, management, and marketing know-how to the new units, improving their performance. The company has brought several acquired companies back to full production, increasing employment opportunities in the host country as well. c. Cemex has a strong preference for acquisitions over greenfield ventures as an entry mode. Why? Cemex has successfully acquired established cement makers in many countries.

By acquiring companies rather than establishing them from the ground up, Cemex can avoid some of the delays that could occur in the start-up phase, while at the same time, capitalize on the benefits of an established market presence. Acquiring other businesses is effective because the host economy already knows the demographics and the market. Cemex would be able to make the business better with their technology and research. A Greenfield venture would be risky and not cost effective. d. Why is majority control so important to Cemex?

Majority control is important to Cemex because of the ability to implement its policy of transferring resources. When it does not have majority control it may not be able to transfer its own managing resources to newly acquired companies. Also, Cemex might want to take advantage of differences in factor costs across countries, so it will be allowed to import parts from other places to reduce costs.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyStudyWriters
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Human Resources Management (HRM)
excellent job
Customer 452773, July 17th, 2023
Business and administrative studies
great job as always
Customer 452773, February 26th, 2023
Business and administrative studies
Thank you for your hard work
Customer 452773, October 19th, 2023
Social Work and Human Services
Although it took 2 revisions I am satisfied but I did receive it late because of that.
Customer 452603, March 25th, 2021
Human Resources Management (HRM)
excellent, great job
Customer 452773, June 19th, 2023
Business and administrative studies
Thank you for your hard work and help
Customer 452773, February 21st, 2023
Looks great and appreciate the help.
Customer 452675, April 26th, 2021
excellent job made a 93
Customer 452773, March 22nd, 2023
Business and administrative studies
excellent job
Customer 452773, March 12th, 2023
10th grade English
very good
Customer 452773, March 26th, 2023
Thank you!
Customer 452545, February 6th, 2021
Business and administrative studies
excellent work
Customer 452773, March 9th, 2023
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp