Mateo, Alberto Nel R.

O0B

Answers to the Guide Questions of CEMEX Case Study

1. CEMEX changed its way in conducting business by also focusing with the low
income customer with a fixed rate of demand rather that on unstable high earning
customers.

2. Information Systems help CEMEX in improving their competitive advantage by

having organized information and being able to deliver quality products to their
customers.

3. Social capital is a kind of intangible investment that focuses on connections with

people and gaining their trust. CEMEX build their social capital through their high
quality products and punctual distribution of it. It also includes their customer support
that makes their customers feel important.

4. Low income savings is characterized by having a "tanda system" which is almost

similar in our country's "paluwagan". Aside from that, in their family, mothers are the
ones that budget their finite income. Men on their statutes are even able to engage
themselves in drinking even their income is oftentimes lacking for their basic needs.

5. The entrepreneurial characteristics of the women tied up with CEMEX BOP

strategy by means of having the conception to have better houses and being able to
save money for it.

6. The people in Guadalajara only spent less on cement because they used clay and
limestone for their alternatives. Thus, it has a different method of construction.

7. The role of socios in the Patrimonio Hoy is to expand the program by recruiting
other people to join the said program. They are important for the success of the
project because they are the ones responsible for the progress and continuity of the
program on a specific location.

8. It is important for CEMEX to position itself as a complete solution provider rather

than a product provider because creating solutions to problems with regards to
housing has a stable demand rather than just selling cement for constructing houses.
It's because cement is only a component of the total solution. Thus, revenue from
being a complete solution provider is better.

9. The social capital of Patrimonio Hoy promoters is related to economic capital in a

way that the program are able to invest secure revenue from the additional members
that were referred to by the promoters.

10. The value of Patrimonio Hoy to its promoters is the commission based strategy in
the enrolment of socios. For the socios/partners, they were able to build good quality
house in an average of 4 years. The suppliers benefit from the program through
having a stable demand for their products. The distributors benefit from high margin
material like gravel, sand and also through the steady demand on the cement.
11. Patrimonio means leaving something to the next generation. This helps them to
convey their message to the people that they must save in present to have a greater
quality of living in the future. Thus it is helpful in their marketing strategy to promote
the good essence of the program which at the same time being able to earn from it.

12. Patrimonio maintain their competitive advantage even having a slight difference
in price by means of providing cost-effective solutions which could help them
generate stable income.

13. Freezing prices encourage socios to do business with Patrimonio Hoy by having a
fix price at the whole 70 week of the program. Thus, socios don't need to worry about
increases during the whole program period which is beneficial for them.

14. It is profitable for Patrimonio Hoy because it depends on their social capital,
penalty fee system and the commitment of the group to participate in the program.

15. The role of community pressure in the lending model is through the establishment
of their credibility within their community. Thus, it helps the socios be punctual on
their payment schedules.

16. Patrimonio Hoy changed consumer behavior in a way that they would feel that
they are important and has the ability to do something with their own capabilities.

17. The challenge of the Patrimonio Hoy is the continuous participation in the
program. It may be influence by the mere financial state of the socios itself.

18. Construmex takes advantage of the remittance by having it directly transferred to

the program of building houses. This makes their business able to tap another type of
field.

19. The parallel between the Mexico and Philippine market is that they are both
receiving remittances from their relative abroad but the amount is only larger in the
Philippines than in Mexico.

20. As an IT practitioner, I may propose a Document Management System (DMS) for

file maintenance, Supply Chain Management (SCM) for easier contact with suppliers
and distributors, Human Resource Information System (HRIS) for participants record
management, Fleet Management System (FMS) for maximization of transportation
equipment, Transaction Processing System (TPS) for easy recording of Business
Transactions, Process Control System for monitoring quality of service and products,
Management Information System for Report generation and decision making,
Inventory System for the safekeeping of raw materials, Office Automation System
(OAS) for processing organization data which is in this case are the data from the
program and Enterprise Resource Planning ERP for a complete system solution rather
than different subsystems that are to be integrated in the end.