Question

1. What major factors led CEMEX to go into international business? [ 1 page : 1. What major factors led CEMEX to go into international business? ]

Answer 1

Answer:

CEMEX is an business engaged in the cement product business in the global market.

Major factors led CEMEX to go into international business are as below

• Manage the business cycle risk: The cycling trend in the business impacts the cement industry as some of the seasons are having les demand than others. Hence to balance the business cycle, CEMEX explored the entry in global market
• Explore cheaper labor and resources in global market: World market has many locations where they can find the cheaper resources and labor for the cement manufacturing. So they are willing to explore the cheaper labor and resources so that they can explore better business revenue and profits.
• Explore larger market and customers: so that the market share can be increased of the business and can improve the customer base and improves the branding in the global market.
• Explore operation efficiency in global market: Cemex has the competency in operational efficiency achievements. Hence they would like to explore their competency in the global market so that they can achieve the desired growth for their business using their core competency.
• Larger opportunity in global market for cement products as the competition base is weak and they can explore it for betterments of their business.
• Manage rebates and tax benefits in key regions of the global market so that they can leverage the incentives and rebate benefits in the global market.
• Increase sale for the business by exploring the international market.
• Strategic plan to capture global suitable market so that they can develop global brand in the future and achieve higher success and growth for their business.