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Strategic Management Concept - CEMEX

University: Staffordshire University

  • Unit No: 14
  • Level: Post Graduate/University
  • Pages: 4 / Words 912
  • Paper Type: Assignment
  • Course Code: BLB10089-8
  • Downloads: 458
Question :

The objective of this report is to evaluate strategic management practices and its requirement in business context. All these approaches will assist in analyzing how to analyze new strategic direction by considering:

  • Critically evaluate the key aspects of strategic management process.
  • Compare different theories and perspectives of strategic management in the context of CEMEX company.
  • Evaluate appropriate problem solving techniques for the complex problems of CEMEX company.
  • Analyze the ability to communicate the complex issues.
Answer :
Organization Selected : CEMEX


The concept of Strategic management is very necessary in every organisation in order to cope up with every activities efficiently. It is completely related to the concept which includes, identifying and describing the strategies that management adopts for improving the performance and getting a competitive advantage in the market. It is regarded as the continuous process which helps in the evaluation and controlling various types of businesses and related industries where the company is involved. The following report is on the CEMEX company which is the 3rd leading company in the cement industry and want to expand their business more in order to achieve an advantage over other competitors such as Lafarge (Hill, Jones and Schilling, 2014). The company is regarded as the player which is three legged in the countries such ad America, Europe and Asia. Also, they want to expand in the market of China and India which is emerging and regarded as giant. There are the three major steps which has been taken by the company which are consolidating in the Mexico market, internationalisation and also followed by the global management. The objective of the assignment is to critically analyse the vision, mission ans certain organisational objectives and the strategic capabilities of CEMEX along with the critical evaluation of the implications related to the strategic management such as international market expansion and the processes which are involved in management of risk. The explanation of various competitive capabilities have been provided for improving the margins in trade and provide focus on certain aspect related to it.

1.Critical Analysis of organisational

a. Vision

The vision of CEMEX is to become one of the top leading company in the cement industry which will provide them an unique recognition in an international cement market. This would lead to acquire the global market; thus, increasing the share in market that would lead to generate great profitability.

b. Mission

The mission of the company is categorised as the three major strategies which are consolidating their presence in the cement market of Mexico by acquiring the two major producers of cement, secondly bring out the concept of internationalism which is very important for the expansion and thirdly the global management which includes managing various activities and synchronising it with the other branches across the world for efficient delivery of the product and related services (Strategic Management for Competitive Advantage.2018).

c. Organisational Objectives

One of the important objective of the organisation was to acquire the market of Mexico as it is the 13th world largest consumer f cement, therefore it is the best opportunity for CEMEX in order to expand their market in the largest consumer country by applying various strategies as the country has more potential growth which defines the perfect scenario fro implanting the plants in that area in order to earn huge profit in that particular investment (Wheelen and et. al., 2017). It already has acquired the major cement producers and has become one of the major national leading company and the tenth largest cement producing company in the globe.

Another objective is to make the busiest international while establishing themselves I various countries across the globe as they the the major players in the market of America, Europe and Asia. As initially they use to export cement to the USA and Latin America which required a lot of transport cost, international trading with limited potential. Therefore this lead to an emergence of the idea for expanding the business globally which required lots of investment done in various areas where they found the certain characteristics to be beneficial for the expansion of the business.

d. Strategic Capabilities

Strategic capabilities is the ability of the organisation that leads to the successful implementation of various strategies that has helped CEMEX for effective controlling in various operations which are required for an effective production of cement and its high availability across the globe. This has been achieved due to implication of common technological platform, related structure of organisation and the culture of corporate that has flourished the economy with various aspects. Also there has been a strong relationship among the producers of cement and consumers worldwide. There is also a strong connection among the firm and independent production system. Also with development of a knowledge community that has lead to start a series of practices which is known as “CEMEX WAY” helping out several others for effective implementation of every activity which is related with all the processes. This community brings out the best plans and tactics which can be implied by the company in order to perform their best and produce better quality cement as compared to other competitors. It provides management principles and related system for the entire organisation (Moutinho and Vargas-Sanchez, 2018). Facilitate certain mutual learnings in every subsidiaries.

2.Critical Evaluation of Strategic Management implications in terms of:

a. International Market Expansion

International Market expansion is an essential steps to those companies who desires to get global recognition which is necessary in order to increase the market share of the company which would lead to provide various financial benefits to the organisation.

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