Suitable for GEMBA, Executive MBA, MBA, and executive education programs, this case uses CEMEX, a world-wide cement company based in Mexico, to set the position for unfolding an evaluation of a growth through acquisition strategy. It provides the opportunity to introduce fundamental fiscal, marketing, and operational terms that can be investigated in following categories and offers a discussion about the overall strategy of the firm to get on a worldwide scale instead of growing. The stuff includes a PMI procedure that further allows discussion on that technique. The case opens with a conference call and another barrage of questions for CEO Lorenzo Zambrano about his bid to purchase Australia- based Rinker Group in October 2006.
Until this point, CEMEX has had a long-standing habit of purchasing companies in emerging markets; this acquisition would be a departure from that strategy. It would be the single biggest acquisition in CEMEX's history, in case the deal goes through, plus it'd be among its few forays into a developed market besides in the neighboring United States. The organization has grown exponentially and successfully. Why would this attempt be any different? Was the acquisition an excellent idea or not? And if it was would convince others and Wall Street?
Taking a Mexican Company Global-The CEMEX Way case study solution
PUBLICATION DATE: December 05, 2011 PRODUCT #: UV6381-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION