smcemex-140319052259-phpapp01.pptx

7/25/2019 smcemex-140319052259-phpapp01.pptx

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By Bharathwaj Mohan LT 7A


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2www.cemex.com

CEMEXis founded in 1906 with the opening of the Cementos Hidago pantin northern Me!i"o#

Annual sales$%& '#1( )iion* +rodu"tion Capa"ity 96M tons

One of the leaders in each of our core businesses,"ement* aggregates* and ready-mi! "on"rete

Presence in more than 50 countriesa"ross the Ameri"as* .urope* Afri"a*the Midde .ast and Asia

Trade relationships in more than 100 nationsand one of the word/s toptraders of "ement and "iner

Product Backround

Cement was made )y adding "rushed o"ani" ash to ime and was ater"aed a 2po33oani"2 "ement

Compan! Backround


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3www.cemex.com

Target Market

"or

mal

#nformal

$e%enue

per

customer

"ormal consists of lare scale customers& middle and upper income

indi%iduals' ()0* of total population+

#nformal consists of do it !ourself homebuilders and lo, income

indi%iduals (-0* of population+


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4www.cemex.com

Strategic Group Data


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5www.cemex.com

PEST Factors

Political

Government controls the price of the cement.

The consumption of cement for infrastructure projects like buildings and roads.

Economic Currently there is boom in the industry. Favorable for the export segment of the industry as the number of infrastructure projects across nations

is increasing.

ocial Cement is the basic ingredient for construction of house !hich reflects the social status of an individual. Cement industry has both organi"ed and unorgani"ed sector.

Technological From mining to storage# the process is highly dependant on technology. $ecrease the thermal energy consumption# electrical energy consumption# cost of production of cement

and energy cost.


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6www.cemex.com

5 Forces of IndustryStrategic Group

%mong existing

players

Threat of &e!Entrants '(igh)

*argaining Po!erof *uyer '+o!)

Threat of

ubstituteproducts '+o!)

*argaining

Po!er ofuppliers '+o!)

Conclusion.4era* the industry is attra"tie#


7/237www.cemex.com

Strategic Maps !

H

5eiery M

L

L M H

Brand .uity

(olcim

+afarge

C,

Conclusion.C.M. has a )etter deiery )ut their )rand euity is medium#Maret share depends more on )rand euity#


8/238www.cemex.com

Strategic Maps "

H

8ineness M

L

L M H

Customer etention

+afarge

(olcim

C,

Conclusion. 8iner "ement is easier for "onstru"tion and hen"e "ustomers prefer)rands with finer "ement uaity#


9/239www.cemex.com

Strategic Maps #

H

+a"aging M

L

L M H

%trategi" A"uisitions

(olcim

+afarge

C,

Conclusion. :ood pa"aging of "ement heps redu"e wastage whie transportationand pays an important roe#


10/2310www.cemex.com

$ey % T&res&o'd Success Factors

Brand .uity

;n the "ase of "ement* the )rand re"ognition is important as it infuen"es the de"ision of the )uyer# The uaity isthe same for any )rand and o)iousy peope )uy the nown )rand#

5eiery The speed and effi"ien"y of deiery to the "ustomer pays a "ru"ia roe as peope prefer to hae ui" deiery#

+a"aging

The pa"aging materia is usuay paper or poyethane )ags# The )ag uaity is ery important as they are stored

in the open and moisture is harmfu to "ement#

Customer etention

Customers in"udes )ig rea estate )uiders who order in )u# Their demand for "ement is "onstant as they eep

"onstru"ting )uidings#

8ineness of "ement

8iner "ement is preferred )y the masons as it is easier to mi! with water and sand to mae "on"rete#

%trategi" A"uisitions

;t does not dire"ty infuen"e the de"ision of the "ustomer/s )uying pattern )ut heps "apturing new marets#

+ri"e

+ri"e of "ement is fi!ed )y the goernment and "ompanies tae adantage of effi"ient suppy "hain to redu"e

"osts#



(ompetiti)e Matrix

Conclusion. The "ustomers prefer a )rand )ased on )rand euity and 5eiery"apa)iity and +ri"e is a threshod as it is fi!ed )y the goernment#



Triang'e Mode'

Vision/MissionKey Success Factors

Brand Equity

Delivery

Packaging

Cut!"er #etenti!n

$inene !% Ce"ent

&trategic 'cquiiti!n

Price

Strategic

Competencies

(ig) Pr!ducti!n Ca*acity

E+cient ditri,uti!nnet-!rk

.ean /anage"ent

Pre"iu" ervice !ering

Patrimonio Hoy *r!gra"

i"ely delivery !% ce"ent

/ai"iing !verall *er%!r"ance

Value Proposition



Mission*ision*a'ues of (EME+

Mission /tatement.

4ur missionis to sere the go)a )uiding needs of our "ustomers and )uid aue for our staehoders)y )e"oming the word



,adder Mode'

Resources:- Product- People- Capital- -no!ledg

e- Technolog

y- uppliers

Incompetency

Competencies:- trong supply

chain-

elldistributednet!ork

- /olume ales- ell located

shops- Technology- Cost Culture

- Product ,ix- Timely

delivery- Consistent

production

Strategic

Competencies:- trong supply

chain- ell distributed

net!ork- /olume ales- Technology-

Cost Culture- Product ,ix- Consistent

production

PeripheralCompetencies:

- ell locatedshops

- Timely delivery

ThresholdCompetencies:

- /olume ales- Consistent

production

DistinctieCompetencies- trong

supply chain- ell

distributednet!ork

- Technology- Cost culture- Product ,ix

Competitieadantage:

- Technology- ell distributed

net!ork

Sustaina!le

Competitieadantage:

- trong upplychain

- Cost culture- Product ,ix



,ong Term -/ecti)es

4era* C.M. has identified "ose to $%&'00 miion in re"urrent

annuai3ed "ost redu"tions# %ome of the "ost redu"tion initiaties in"ude )udget "ut)a"s* "apa"ity

"osures* and head"ount redu"tions#

Continue to re-eauate a of the pro"esses and pro"edures of the)usiness* on a go)a )asis* with a iew towards a"hieing signifi"ant oera

"ost-redu"tion and appropriate rightsi3ing of the )usiness#

Ground!ork for0nternationali"ation

tepping1ut

Gro!ing

2p

tepping2p



0ew Triang'e Mode'

Vision/MissionKey Success Factors

&u,titute %!r li"et!ne

e !% alternative %uel

Packaging

Brand Equity

Delivery

Cut!"er #etenti!n

Price

Strategic

Competencies

(ig) Pr!ducti!n Ca*acity

E+cient ditri,uti!nnet-!rk

.ean 'gile /anage"ent

Pre"iu" ervice !ering

.een t)e )!uele *e!*le

i"ely delivery !% Ce"ent

/ai"iing !verall *er%!r"ance

Value Proposition



0ew Matrix

$ey Success Factors 1eig&tage (emex 2o'cim,td ,afargeS.3

&u,titute %!r li"et!ne 25 8 9 8

'lternative %uel 15 9 8 7

Packaging 15 8 9 8

Brand Equity 15 8 9 8Delivery 10 8 8 8

Cut!"er #etenti!n 10 8 7 8

Price 10 8 8 8

Tota' scores !44 6.#5 6.75 6.45

Market S&are !44 !6 #4 "8

Conclusion. Limestone whi"h is the raw materia and Coa whi"h is fue used for firingis a non renewa)e resour"e and hen"e there wi )e a need to find a asty aaia)esu)stitute to meet the future demand on"e the deposits are e!poited#



S1-T Generation of Strategic -ptions

S"#T $nalysis

Strength

S% *rand 0mage3+oyalty

S& 4uick $eliveryS' $ominant position local

market

S( (igh 56$ 0nvestments

"ea)ness

"%+ack of identifying proper partners

"&5esource constraint in 0nternational$ivision.

"' Poor 0nternational brand name.

#pportunities

#%Globali"ation

#&First time

Constructors

#' *etter ,arketing in

Emerging ,arkets

trategic 1ptions

S% #& *etter *randing

S& #' 0ncreased customer

base.

trategic 1ption

"% #' Choose international

partners carefully.

Threats

T%5ivalry !ith small

cement producersT&Competition from

ne! entrants

T' Changing Customer

$emands

trategic 1ption

S( T' Product 0nnovations

S' T& %c7uisitions

trategic 1ptions

"& T% %lternative ra! material

"' T& *etter ervice


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19www.cemex.com

-ptions Fi'ter

&trategic*ti!n

.30

P30

rganiati!nalCa*a,ility

30

'lign"ent

-it)/ii!nii!

nalue10

!tal&c!re

Better Branding 8 7 8 8 7:7;ncreaedCut!"er ,ae 7 8 8 9 7:8Pr!duct;nn!vati!n 7 7 9 8 7:7&trategic

acquiiti!n 8 7 8 8 7:7'lternate #a-/aterial 6 5 7 7 6:1

Better &ervice 7 8 7 8 7:4


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20www.cemex.com

n core business of cement& areates and read!mi2 concreteustomers ,ith the best %alue proposition

nancial fle2ibilit!

operational efficienc!

stainable de%elopment

S&ort % ,ong Term 9ecommendations

"ind an alternate source of ra, material as limestone is non rene,able' 4se of alternate source of fuel apart from coal for firin purpose' ean manaement techni6ue to eliminate ,aste and impro%e process' #nno%ati%e ,a! of deli%erin cement to the poor ,ho are potential

customers'


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21www.cemex.com

:IG; : Framework

This Mode is )ased in > o)je"ties and fo"uses on 7 a"tion oriented priorities,

Enhance alue Creation? Lead in %ustaina)e Constru"tion? Low ;n"ome Housing @ ;nfrastru"ture

Manae "ootprint

? .nhan"e our Car)on %trategy? .!"een"e in .nironmenta @

Biodiersity Management

Enae /takeholders

? High +riority to Heath @ %afety? %trengthen o"a "ommunities? +artnership with ey %taehoders


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22www.cemex.com

Sources

www#"eme!#"om

http,www#domini"antoday#"omdre"onomy01077>6((print

http,www#managemente!"hange#"omstoryshift-"hanges-way-"eme!-wors

http,www#"risi#"omatings%e"torMethodoogyMethodoogy5o"sC;%;L-atings-"rieria-"ement-industryD007#pdf
http://www.cemex.com/http://www.dominicantoday.com/dr/economy/2010/7/7/36244/printhttp://www.managementexchange.com/story/shift-changes-way-cemex-workshttp://www.managementexchange.com/story/shift-changes-way-cemex-workshttp://www.crisil.com/Ratings/SectorMethodology/MethodologyDocs/CRISIL-Ratings-crieria-cement-industry_2007.pdfhttp://www.crisil.com/Ratings/SectorMethodology/MethodologyDocs/CRISIL-Ratings-crieria-cement-industry_2007.pdfhttp://www.crisil.com/Ratings/SectorMethodology/MethodologyDocs/CRISIL-Ratings-crieria-cement-industry_2007.pdfhttp://www.crisil.com/Ratings/SectorMethodology/MethodologyDocs/CRISIL-Ratings-crieria-cement-industry_2007.pdfhttp://www.managementexchange.com/story/shift-changes-way-cemex-workshttp://www.managementexchange.com/story/shift-changes-way-cemex-workshttp://www.dominicantoday.com/dr/economy/2010/7/7/36244/printhttp://www.cemex.com/


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