Write a two-page overview explaining your findings on Cemex, to include answers to questions below and include

Part 1:Write a two-page overview explaining your findings on Cemex, to include answers to questions below and include them in your value proposition.

Cemex and Cement Industry Background

Cemex

Cemex, the world's fifth biggest cement manufacturer, is a Mexico-based multinational company that was founded in in 1906. The company has a total capacity of 87 million tons, and 56 production facilities worldwide (Global Cement, 2017a). In 2016, Cemex had a worldwide workforce of 41,357 employees, and net sales of $13.4 billion (a 3 percent decrease over 2015). Also, Cemex's 2016 operating EBITDA (earnings before interest, tax, depreciation, and amortization) as percentage of net sales was 20.5 percent versus 18.8 percent in 2015 (Cemex, 2017).

In 1994, Cemex entered the US market with the acquisition of Lafarge's Balcones plant in Texas, which is close to the Mexican border (Global Cement, 2017b). This was followed by other major acquisitions, and today Cemex owns 11 plants, 43 terminals, and 270 ready-mix concrete plants across the United States (Cemex USA, 2017).

US Cement Industry

The US cement industry is third largest in the world, with an estimated active and mothballed capacity of more than 113 Mt/year, behind China (more than 1400Mt/year) and India (more than 230Mt/year). In the United States, 40 percent of cement production, and about 50 percent of production capacity, is controlled by four major multinational companies; namely Lafarge, Cemex, Holcim, and HeidelbergCement (Global Cement, 2017a).

An increasing number of limestone discoveries in the east, as well as the ability to efficiently move freight along the Mississippi River system in the midwest have led to the rapid creation of a cement industry in the United States. Today, much of the cement (25 percent) industry is still concentrated in this area. In the early 1900s, the introduction of the rotary kiln helped US cement production take off. The Association of American Portland Cement Manufacturers (AAPCM) was established in 1902 to safeguard the interests of the industry. In 1916, the AAPCM was renamed the Portland Cement Association, or PCA (Global Cement, 2017a).

· Where are the company's production facilities located?

· What is Cemex's annual turnover in dollars and what is its annual production in tons?

· How does Cemex differentiate its offering in a market where cement is a commodity?

· Are there differences in product quality?

· Who are the major global and US customers?

· What benefits does Cemex offer to its customers?

Describe these benefits and tie them to your value proposition. A value proposition is essentially the promise that is made to the customer. The value proposition should be included in your report. Who are the major global and US competitors?

References

Cemex. (2017). Investor center: 2016 Q4 report. Retrieved from www.cemex.com

Cemex USA. (2017). About us. Retrieved on March 12, 2017 from www.cemexusa.com

Global Cement. (2017a). Cement in the USA. Retrieved on March 12, 2017 from http://www.globalcement.com/magazine/articles/698-cement-in-the-usa

Global Cement. (2017b). The top 100 global cement companies and global per capita capacity trends. Retrieved on March 12, 2017 from http://www.globalcement.com/magazine/articles/964-preview-the-top-100-global-cement-companies-and-global-per-capita-capacity-trends

Part 2: Conduct the following three analyses for Cemex: PESTEL analysis, SWOT analysis, and Porter's five forces analysis. Present your results in a four-page report (excluding cover page, reference list, tables, graphs, and/or exhibits). Be sure to support your work with scholarly sources, and reliable nonscholarly sources (such as Bloomberg, Yahoo! Finance, Money, Forbes, Fortune,and Harvard Business Review).

As a member of Cemex's marketing team, you use quantitative and qualitative market information to make important decisions. Your team will use the following tools to conduct an environmental scan:

• PESTEL analysis: A PESTEL analysis (sometimes called PEST analysis) enables Cemex to identify, analyze, and monitor the political, economic, social, technology, legal (including regulatory), and environmental factors that may impact its operations (Frue, 2017).
• Porter's five forces analysis: Porter's five forces analysis is a framework that can help Cemex understand the competitive forces at play in its industry. These forces may impact how economic value is divided among Cemex's competitors in the industry (Porter, 2008).
• SWOT analysis: A SWOT analysis is a planning and brainstorming tool that helps Cemex evaluate its projects and formulate its business plans. SWOT stands for strengths, weaknesses, opportunities, and threats. Cemex uses this tool to identify and analyze its internal strengths and weaknesses, as well as its external opportunities and threats. The results of this analysis may help Cemex improve its business or forecast how a new product will perform (Harmon, 2016).

Research the cement industry (domestic and international), research market trends, and identify market opportunities, threats, and Cemex's major global competition. Conduct a situation analysis including an internal analysis of Cemex, customer analysis, and an analysis of the macro-environment (external environment). Which elements have the biggest impact on Cemex's success? What factors impact Cemex's business buyers?

References

Frue, K. (2017). Why do PEST analysis for your business? Retrieved from http://pestleanalysis.com/

Harmon, A. (2016). SWOT analysis. Salem Press Encyclopedia [online]. Retrieved from Research Starters, Ipswich, MA. Accessed February 24, 2017.

Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 78-93.