Cemex Raw Unfinish Work

Submitted by: Erika Lorenzo

Case study on CEMEX: Innovation in housing for the poor

1. How did CEMEX fundamentally change the way it conducted its business?

The company’s strategy emphasized improving profitability through efficient operations. The company also shifted from selling products to selling complete solutions. By this, CEMEX has established a very strong brand managed to translate it into extraordinary profits from a commodity-driven business.

2. How does information systems contribute to CEMEX' competitive advantage?

The company has invested considerably in information technology over the years to boost productively and manage its operations more efficiently. CEMEX takes pride in its operations and was recently the winner of the CIO-100 from the IDG’s CIO magazine. The company has gained a significant competitive cost advantage over its competitors by setting up an excellent distribution infrastructure and centralized, computerized delivery network in which every moment of every truck is monitored in real time, enabling on-time delivery of cement and ready-mix to customers. The operation in Guadalajara boasts a 97.63% on-time delivery of cement.

3. What is social capital? How does CEMEX build social capital?

Social capital describes the pattern and intensity of networks among people and the shared values which arise from those networks. While definitions of social capital vary, the main aspects are citizenship, neighborliness, trust and shared values, community involvement, volunteering, social networks and civic participation. (http://www.statistics.gov.uk/socialcapital/) CEMEX build social capital by supporting low-income housing in Mexico.

4. How are the low-income savings characteristics of Mexican society characterized?

Low-income families in Mexico follow a different savings method from that of middle- and upper-income families. Because low-income families don’t receive regular paychecks and don’t receive any government subsidies or...