Must read CeMEX case study and answer question with web reference. Answer no less than 500 words09-039
March 5, 2009
This case was prepared by Cate Reavis from published sources under the supervision of professor Donald R. Lessard.
Professor Lessard is the Epoch Foundation Professor of International Management.
Copyright © 2009, Donald R. Lessard. This work is licensed under the Creative Commons Attribution-Noncommercial-No
Derivative Works 3.0 Unported License. To view a copy of this license visit
or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.
CEMEX: Globalization “The CEMEX Way”
Donald R. Lessard and Cate Reavis
When one wants to globalize a company, especially when it is from a developing country like Mexico,
you really need to apply more advanced management techniques to do things better.
We have seen
many cement companies that use their capital to acquire other companies but without making the
effort to have a common culture or common processes, they get stagnant.
—Lorenzo Zambrano, Chairman and CEO CEMEX
On June 7, 2007 Mexico-based CEMEX won a majority stake in Australia’s Rinker Group. The
$15.3 billion takeover, which came on top of the major acquisition in 2005 of the RMC Corporation
– then the world’s largest ready-mix concrete company and the single largest purchaser of cement –
made CEMEX one of the world’s largest supplier of building materials. This growth also rewarded
CEMEX’s shareholders handsomely through 2007, though its share price had fallen precipitously in
2008 in response to the global downturn and credit crisis coupled with the substantial financial
leverage that had accompanied the Rinker acquisition.
CEMEX’s success over the 15 years from its first international acquisition in 1992 to the Rinker
acquisition in 2007 was not only noteworthy for a company based in an emerging economy, but also
in an industry where the emergence of a multinational from an emerging economy (EMNE) as a
global leader could not be explained by cost arbitrage; given cement’s low value to weight ratio little
product moves across national boundaries.
Much of CEMEX’s success could be attributed to how it looked at acquisitions, and the post-merger
integration (PMI) process that ensued, as an opportunity to drive change, and as a result,
continuously evolve as a corporation.
Since it began globalizing its operations in the early 1990s, the
John Barham, “An Intercontinent a l M ix; ”
, April 1, 2002.