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CEMEX

Page history last edited by caloy 15 years, 11 months ago

CEMEX.doc

 

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

2.    The company has invested considerably in information technology over the years to boost productivity and manage its operations more efficiently. CEMEX takes pride in its operations and was recently the winner of the CIO-100 from 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 movement of every truck is monitored in real time, enabling on-time delivery of cement and ready-mix to customers.

3.    Social capital refers to connections within and between social networks. It is a core concept in business, economics, organizational behaviour, political science, public health, sociology and natural resources management

4.    Within a community, neighbours, families, and friends get together and form tandas or “pools”. The members of the tanda pool in money as and when they receive paychecks and if they have any money left to save. Once a week, one of the members can bid for the pool by deep discounting or can win the pool through a lottery. Typically this pool is used for unanticipated family emergencies, education, and sometimes housing.

5.    70 percent of women who were saving were saving money in the tanda system to construct homes for their families. The women actually manage expenses with the limited “allowance” that they receive per day from the men working. They have to find very creative ways to allocate money from the allowance as savings to build a house, spend on their children’s education, and so on.

6.    Guadalajara has been considered a traditional test market in Mexico for many reasons. First, the social and economic profile of low –income communities was very representative of most of the populated areas in Mexico. Second, CEMEX was gradually losing its stronghold in the second-largest city in Mexico. The third very subtle reason was that the construction methods in Guadalajara were different from that of other places.

7.    Socios are the actual customers who enrol in Patrimonio Hoy. The socios get together and form a group, restricted to three people. The reason for such small group size is that it is easier to enforce payment discipline in a smaller group, and the group tends to form stronger relationships to help each other out during an emergency.

8.    CEMEX was quick to realize it had no position itself as a complete solutions provider at low cost and not as a cement seller competing on prices, in order to tap into the huge low-income market. It also realized if it tried to sell just cement, it wouldn’t take too long for competitors to enter the arena.

9.    Promoters who identifies prospective customers, sells the idea of savings-credit to them, motivate them to enrol in the program.

10.     Promoters participate in Patrimonio for a social cause to build social capital. Patrimonio Hoy helps the poor build homes that might have been a distant dream otherwise. Patrimonio Hoy has steady demand for their materials and the quick growth in sales in locations of operations of Patrimonio Hoy. Patrimonio Hoy has effectively created a pull for cement, and CEMEX on the supply side pushes it, enabling push-pull strategy for cement sales.

11.    Patrimonio means families leaving wealth for their sons and daughters. Patrimonio Hoy enables poor people to pay for services and building materials to upgrade their homes.

12.     The goal of the program is to operate as a standalone, break-even unit, because the initial objective is to increase customer awareness, change consumer behavior, and establish a competitive position in the market.

13.     Patrimonio Hoy is able to charge a slight premium over its competitors.

14.     The huge rate of success according to Patrimonio Hoy program can be attributed to three important factors: group commitment, social capital, and the penalty fee structure.

15.     News simply spreads by word of mouth and he or she is more less ostracized from the whole process.

16.     By offering a complete and comprehensive solution for housing.

17.     The biggest challenge for Patrimonio Hoy is to retain customers for a longer period of time and motivate them to return for additional rooms or other expansions.

18.     Channel as large a share of the remittance flows of CEMEX.

19.     There are many poor people here in our country. The program of CEMEX can help the poor people to use services for their houses.

20.     Risk management system, Decision support System, Documentation management system, Fleet management system, Sales system, Inventory system, Payroll system, MIS, Organizational Memory system, Electronic data processing.

 

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