Cemex Rmc Acquisiton

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CEMEX – Cementing Relationships (2004 – 2007) 1. Executive summary CEMEX’s acquisition and post-merger acquisition of RMC inspected from a high-level helicopter view can be initially identified as a success. The change management analysis of the case, however, reveals several issues. The issues are not critical but are visible in case of all three fits of the congruence framework. In this analysis the environment is assessed by a SWOT analysis and findings from a PESTEL framework thinking. The congruence framework guided the logic of investigating the fit between the strategy and the environment and the throughputs. During the analysis several change management concepts have been addressed, most of which are around socio-cultural, strategic, and communication and involvement of people. 2. Situational analysis CEMEX is one of the world’s largest supplier of building materials (US $15.14 bln sales in 2011). The Mexican company founded in 1906 has long been a local, Mexican player but since 1992 it has stepped on an exponential „road” to become global. A key instance for this has been the appointment of Lorenzo Zambrano to be the CEO and Chairman in 1985. With his in-depth knowledge of the Monterey based company (grandson of founder and went through the ladder till becoming CEO), extensive business management skills (MBA, US universities), and openness to high-tech solutions, computer aided business (CEMEXNet) CEMEX acquired and developed the skills necessary to outperform its rivals in size, quality, and profitability. Success can be rooted to the strategy that CEMEX has been focused on emerging markets where profitability was higher versus developed markets. Prior to the 2004-2007 period CEMEX has made several acquisitions in Mexico and mainly in other Spanish speaking countries like Spain, Venezuela, Colombia, and Costa Rica but also countries like Egypt,

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