Cemex Case Essay

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Case Analysis Paper on the CEMEX Nowadays more and more companies for any reasons are getting involved in mergers and acquisitions. But if they succeeded in the Pre-Merger Planning and Merger Process itself, they will eventually face another challenge such as the Post-Merger Integration (PMI). Namely the Post-Merger Integration will test whether the merger is a success or failure. In this case CEMEX has shown well-planned and efficient PMI process. 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. 1. The creation of a PMI team. The PMI team helps to understand cultural differences and methodology of the acquired plant and also assistance in decision-making on the managerial positions. 2. The accelerated implementation of Information Technologies. That was a crucial decision made by CEMEX’s CEO Lorenzo Zambrano. The company’s IT department was targeted at creating a mechanism of information collection and making arrangements. Due to the constant flow of operational information, CEMEX management is able to keep up with all events in any of its plants and monitor their activities. Moreover it helps to optimize and

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