No need to ship the goods across the border, therefore no tariffs on the delivery. o Risk diversification- CEMEX could well spread their risks. If one market is not performing well, it could depend on the other ones. So, assuming there isn’t a world-wide recession, the revenues of its will be more stable because of diversification. o Talent across markets- Ability to identify new emerging markets and having advantage of an already set up network system o Proximity to raw materials gives benefits on distribution channel.
By doing so, these cement companies could control the localized quarries, which give them the proximity to the raw material needed for cement production. No need to ship the goods across the border, therefore no tariffs on the delivery. On the other hand, as they acquired the local plants and built distribution terminals, these companies have gained a competitive advantage of transportation cost. If they choose to export, the cost of transportation may cost them a fortune, as the cement need to be shipped in special means. Thus, they will lose their competitiveness in price otherwise the margin.
CEMEX is one of the largest cement manufacturers in the world. It was founded in Mexico, but after becoming the Mexico’s largest cement producer and securing its positions in Mexico it begins the process of expanding abroad. The purpose of the Post-Merger Integration was improving the efficiency of the newly obtained operations and adapting it to CEMEX’s standards and culture in order to make top-managers and specialists from Mexico and acquired plant speak the same “language”. The PMI process involved integration at three levels: 1. the improvement of the situation at the plant acquired; 2. the sharing or replication of basic management principles; 3. the harmonization of cultural beliefs. The ways of implementing the Post-Merger Integration are the following.
ABC Chemical Company Goes Global* Driven by competitive pressures, and the attractiveness of the industry’s fastest growing market in the world, a U.S.-based chemical manufacturer, ABC Chemical Company (name changed to maintain confidentiality) considered expansion into Asia, specifically, China. William Smith is the International Marketing manager for ABC Chemical Company. William has been tasked with expanding ABC’s manufacturing and distribution to the Asia Pacific region. Many changes in the powder coating industry have forced ABC to reconsider its their global strategy. To date, they have exclusively manufactured and exported from the Americas.
The company does not jeopardize long-term growth for immediate, short-term results. It maintains a conservative financial posture in the deployment and management of assets. It continually strives to eliminate waste, minimize cost and implement performance improvements. Tootsie Roll Industries invests in the latest and most productive and technologically advanced equipment to deliver the best quality product to its customers at the lowest cost. In addition, it seeks to outsource functions where appropriate and to vertically integrate operations where it is financially advantageous to do so.
The switch is easy and cost-efficient. c. the ratio of fixed to variable costs is high: Inventec has to reduce prices to utilize installed capacity. (e.g. its new manufacturing compound in Pudong, Shanghai) d. OEMs own the distribution channel and make the rules. 2.
Target is also a discount store, but they offer a different spin. They are more focused on the style. Target’s corporate strategy is one that has changed little over the years: to provide high-quality, stylishly designed items plus all the essentials for life, displayed in a clean, organized and welcoming environment. Target’s size is most beneficial because they can cater their services and products to change with trends more quickly and at prices that are affordable to the customer. Target appears to run on a functional organizational structure.
The competitors have allowed their customers to crave the new technology of produced furniture by creating a lower price range. The simulation stated that housing were inexpensive, the location of business had mild weather, and beautiful scenery, along with uncongested roads a new International Airport and plenty of new development (University Of Phoenix, 2011). Alternatives To make a profitable decision the implementation of alternative needs to be considered. The three alternatives investment projects (the currently used approach, the high-tech approach, and the broker approach) needs to be categorized in a distinct order. The currently used approach consists of the company not changing their position, they will continue with their business lifestyle since the 1900s.
Do you think Altera’s new strategy will be successful? What are some advantages and disadvantages of the new strategy? Yes, I think their new strategy will be successful, because their new strategy offsets some of the risk associated with carrying too much inventory, since they only build finished products to customer orders and build die banks to stock. The intent of this strategy was to improve visibility into customer information, inventories and build plans, facilitate product development collaboration, and improve Altera’s inventory management. This allows them to reduce safety stock levels and inventory holding costs as well.
MUJI’s SWOT Analysis Strengths Provide solutions to easy living, MUJI’s products aren’t decorative or fancy by any means yet they are functional and do abide by MUJI’s ‘what you see is exactly what you get’ speech. Their simplistic designs and ‘no branded’ products are a marketing ploy in itself; they appear honest and loyal to their customers by not deceiving them with over packaged goods, yet create a brand that segregates itself from others in the market. MUJI has been successful at creating a perfectly clear and global brand personality. Concern to the people who live on Islands and some cities where no MUJI store there, MUJI is providing online shopping services. MUJI’s five principles for coexistence with the earth.