To begin, they have added volume to their business which was not available locally. According to Gupta, Govindarajan, & Wang (2008), they have exploited economies of global scale. The only way to increase their business volume was to go global, and increase profitability. Localized plants can help reduce the time it takes to deliver cement to a customer, which will help increase their customer satisfaction, and gain them additional business. In addition, when CEMEX began expanding abroad, they used PMI teams to streamline a new firm, identify and retain talent, and adopt the key standards of CEMEX's business model.
| 1976 | In 1976 CEMEX made an initial public offering at the Mexican Stock Exchange. Later that year, CEMEX became Mexico’s market leader with the acquisition of Cementos Guardalajara. | 1985 | For the first time, CEMEX’s annual sales exceed 6.7 million tons of cement and clinker, and the annual sales of three cement plants–Monterrey, Guadalajara and Torréon–each surpass 1 million tons. | 1986 | Through co-investments with North American cement companies, CEMEX consolidates its export program. | 1987 | 1987 saw the acquisition of Cementos Anahua and started the implementation of a satellite system, CEMEXNet to connect the company’s facilities.
Case 1: Globalization of CEMEX 1. What benefits have CEMEX and the other global competitors in cement derived from globalization? 1, Deduction of tariffs connected with exporting. 2, Because of the internationalization of these companies that are able to spread their risk. Thus, if one market is not performing they can rely on the other 3, Across markets with talent 4, Ability to identify new emerging markets and having advantage of an already set up network system 5, Approach to raw materials gives benefits on distribution channel that is already organized by formers.
Kendle Net Income margin of 5.3 % in 1996 is much higher than 1.6% of the Quintiles which is considered to be the “golden standard” of the industry and more than double more than 2.2% net income margins average. These good financial ratios can be explained by the in-depth control of financial performance of the Company by its owners and Kendle preparation to the IPO process. By 1996, Kandle conducted clinical trials for 12 of the world’s 20 largest pharmaceutical companies. Research is a labor-intensive business and Kendle focuses a lot on maximizing labor utilization on 65 % to 70% utulazation rate to make sure that the profit margins are higher, especially on the operational level. With a qualitative and experienced management team Kendle organized the well-defined organizational structure where all the strategic business units carried profit responsibility.
Running head: Dollar General 1 Dollar General Columbia College RUNNING HEAD: Dollar General 2 Dollar General Dollar General is the leader when it comes to discount dollar stores with an annual profit of more than $12.73 billion a year. The major competition in the dollar discount stores for Dollar General in order are Family Dollar and the Dollar Tree. Another key player in discount stores is Walmart, although not a dollar discount store Walmart dominates all markets with $419.24 billion in revenue. 2011 brought on a year of expansion for Dollar General with plans to open up 650 new stores and remodel another 550 creating 6.000 new jobs in additional employees. Dollar General in owned by Koldberg Kravis Roberts & Co. L.P (KKR) who own more than 79% of all shares in Dollar General.
Changes in operations will help increase job exports. For the U.S., companies export new capital equipment and production to help create potential competitors. Importing countries demand that exporters shift part of their production to the purchasing nation in order to gain their sale over others. The emphasis on exports to developing countries combined with the focus on sales of new capital goods may introduce inappropriate technologies into nations with high unskilled labor pools. Exports of mining, petroleum, and infrastructure equipment may help multinational corporations and developed countries access cheaper raw materials, with few benefits for the residents of developing countries.
Finally we chose ICAPM because it captures substantial foreign risks. We will recommend DOW to bid the minimum price of $150m. Introduction Dow held a leading market position in the chemical industry. Chemicals, Plastics, and agricultures products are three major business generated annual revenues of $20.2 for Dow’s. Even though Dow has plants in over 30 different countries about 75% of its sales are from US and Europe.
The current ratio was 3.6 on February 29, 1988which mean that it has plenty of cash to cover any of its current liabilities. Moreover, Interco’s capitalized leases were 19.3%. The company was financially “overcapitalized”. When looking at the company collectively, Interco also looks healthy, with sales increasing 4.04% in 1987 and 13.4% in 1988.Growth in earnings moved Interco further toward its goal of a 14-15% return on equity: 1988’s ROE of 11.7% was up from 9.7% in fiscal 1987. However, if closer examination is undertaken, it is clear to see that the general retail and apparel businesses are struggling while footwear and furniture have been flourishing.
This led the government to solve the logistical problem due to the fact that Mexico`s transportation system was below average. NAFTA encourages Mexico to improve the transportation system, which lowers the logistical cost. Additionally, NAFTA allows foreign investment in Mexico. As a result, Wal-Mart was able to build manufacturing plants in Mexico because of the cheap labor. In this particular case we can observe how low labor cost contributes to obtain low import tariffs therefore leads to cheaper products.
Marketing Britvic Case Study – Assessment 1 1. Characteristics of the marketing concept. The Selling Concept – This concept doesn’t primarily focus on new consumer wants or desires but focuses on the selling and promotion of a particular already existing product in order to achieve the highest sales they possibly can. This technique is suited to companies who sell products which are in high demand and whose customers/consumers tastes are unlikely to change and lessen demand. The Production Concept – Companies focusing on this concept will primarily focus on achieving high production efficiency at low costs and mass distribution as they believe the consumers are primarily interested in widely available products at low prices.