Independent Research on CEMEX
Introduction
CEMEX is a company that deals with the provisions of quality products. The company also aims at being liable to the customers and the societies across the globe. The company deals in the production and distribution of cement ready mixed concrete and masses in companies more than fifty. Also, sells building materials to different countries with the maintenance of a good relationship with various nations. The companies’ description can be stated at its innovative, flexibility and efficiency nature.
The introduction of the practice of acquisition was developed in CEMEX by borrowing some of the methods used in other companies and comparing them with his thus choosing the best one for implementation (Hill and Jones 339). CEMEX considers the use of acquisition as a quick strategy as compared to Greenfields. Also, the operation of addition is termed differently because of its fast executions, the value of the assets and in its efficiency in acquiring resources. Moreover the use of information technology IT has led to the success of the company by noting the customers’ needs and demands and working for their satisfaction this makes them reliable to the clients and stakeholders (Robles 103). Also, CEMEX prefers using its capabilities to other companies. The reason why CEMEX does not like Greenfields is because it is inefficient in regards to the foreign investments schemes. Also, the use of Greenfields takes a long time and needs purchasing of almost everything like the factories and hiring of new laborers. This delay creates a long time for companies blending with the cultures and the establishment of customer’s brand loyalty, therefore, making it unsuitable. Consequently, acquisition follows some shortcuts for the companies’ dealings with investments. Also, CEMEX takes considerable measure for satisfying customers’ requirements and expectations dealing with the building materials supplies. Also, the acquisition helps the company in having local know-hows and contacts in different industries and enterprises ( Guillen and Esteban 200). Moreover, CEMEX gains partnerships with various companies, if the companies are inefficient CEMEX brings out their skills to the market, therefore, making them valuable, efficient and known to the market. Also, acquisition tackles with the situations of entrance obstacles by accessing the already present administrations thus decreasing the threat of competition.
Moreover, the use of acquisition has led to the improvement and the success of the firm by constant development of products and embracing of change. Also, the use of acquisition has helped the company in the acquiring of other businesses for themselves across the world. Additionally, the gaining of new enterprises increases the company’s financial status this is because it also gains profits from the other firms. The use of acquisition for CEMEX and any other companies enables the fast growth of business in the market sector. Moreover, it helped the company in getting and maintaining its position in the market therefore reducing competition and increasing the stocks in the market. Seemingly, the growth by acquisition is everything that Greenfield is not starting from speed; it is not costly, and it is less risky. Furthermore, it offers myriad advantages regarding available funding and immediate financial gauge (Guillen and Esteban 201). Also, it helps in strengthening the operations of businesses that are weak to compete with other companies. Notably, it is easier to fund development through acquisition other than Greenfields. However, the acquisition has its shortcomings like regarding finances profit; the company might not get the returns that were expected. Also, the constant consistency in acquisition might prevent the company’s development from within. Seemingly, the cost might be relatively high depending on the acquirer; furthermore, the hostile takeovers of other businesses management control might create problems for the enterprise.
Why Majority Control Is Important To CEMEX
The majority is critical to CEMEX because it wants to sustain control of its operations the expertise know-hows and its policies. Moreover, for the formation of internationalization was intended in the reduction of the dependence upon the countries market and increase stability regarding the demand for their goods (Ahmed 20). Also, they needed control because during the procuring of new companies their management controls are also transferred. Therefore, they need the power of governing the new enterprises as the mainstream. Seemingly it is noted that companies like Semen Gresik in Indonesia failed in keeping their promise that states the coming together of the two companies makes CEMEX the majority leader (Lessard and Rafael 39). The blocking of CEMEX position as majority leader was for the protection of the countries properties from falling under the control of foreigners. Also, CEMEX wants to get the position because it has its advantages like benefits regarding shares distributions. The company wants to get benefits from the other companies like the dividends (Lessard and Rafael 40). Also, CEMEX wants to create reassurance to his suppliers that there will be a constant and quality supply of products and services. To achieve the customer trust, they need to be the managing controllers of the merged businesses.
In conclusion, the use of acquisition has helped in the development of CEMEX regarding its strategies and its duties. Notably, Greenfield has proven to be undesirable because of its ways of operation. Consequently, the importance of majority control over new companies brought by CEMEX is understandable because the firm's shares are also involved. The use of acquisition has helped not only CEMEX Company but also other businesses that are using the strategy. It is noted that it helps in the saving of the costs of business; also, it helps in the efficient functions of the operations of the companies. Regarding majority control, CEMEX needs it for the maximum control of its products and in its suppliers. The aim of CEMEX in majority control is for the expansion of the market for their products. Moreover, the development of the market helps it not to be reliable to its local market but also outside the scope of its country’s market. Consequently, the hostile takeover of the other countries might not increase valued profits to the company. Furthermore, many companies that are merged with others do not like to be managed by foreign shareholders; this is because the countries want to safeguard their property.
Works Cited
Ahmed, Shameem. "Recruitment and selection process of CEMEX Cement Bangladesh Ltd." (2014). Print
Guillén, Mauro F., and Esteban García-Canal. The new multinationals: Spanish firms in a global context. Cambridge University Press, (2010). Print
Jones, Gareth R., and Hill, Charles, W., L. Strategic management essentials. South-Western Cengage Learning, (2012). Print
Lessard, Donald R., and Rafael Lucea. "Mexican multinationals: Insights from CEMEX." (2008). Print
Robles, Fernando. "Cross-border Acquisitions in Latin." Market Revolution in Latin America: Beyond Mexico (2001): 103. Print
