CEMEX is the worlds third largest cementum maker and the second biggest producer in the US market. This guardianship follow started as a modest Mexican family-owned conglomerate, which grew through acquisition in its home market and also internationally.
Its spheric result was based on a focus strategy, were upright integration, geographic diversification of assets location, cost control and organic growth, were the find out factors to succeed. A major part of this success is linked with Mr. Zambrano, the company CEO since 1985.
Internationalization came as a solution to the exalted correlation between the cement industry performance (very alternating(prenominal) industry) and the Mexican economy evolution. Therefore, to minimize the high cash prey volatility and the high cost of capital, they settled operations in countries with counter cyclical economies.
When it comes to new investments, it is essential that CEMEX does not bias from its financial target and if it does, it has to be temporary in basis of capital structure. Key targets include maintaining a group take aim interest expense ratio of 4.5% and a net sugar before interest, taxes, depreciation and amortization (EBITDA) of 2.7%. The CEMEX acquisition strategy has mature over the years.
Its a lot more austere in evaluating merger criteria and post-merger integration.
Today, half of the companys gross sales be generated from markets outside Mexico, with operations spanning North, Central and South America, Europe, the Caribbean, Asia and Africa. Acquisitions are a core part of the companys growth and the single platform has been essential in making the musical arrangement more efficient. Managers use the group-wide IT system as a constant quantity window into the company process, so managers have a firm control over operations in different part of the firm at any given time.
Main challenges of the case
In 2006, the main challenge faced by CEMEX was, not macrocosm positioned, yet, in China and India. These two...If you want to get a integral essay, order it on our website: Ordercustompaper.com
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