Case notes (final)

Case notes(final) - Quick Tim eTM and a dec om pres sor are needed to see this pic ture Cementos Lima Macro-environmental analysis External

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Cementos Lima Macro-environmental analysis External environment STEEP/PEST Analysis Social Technological Economic Ecological Political o Conditions that the firm can’t change, but can adapt to Focus on environmental trends o What are the major trends o Historical evolution of these trends o What is the rate of change? o Which strategies maximize benefits/minimize costs associated with these trends? Environmental trends affecting Cementos Lima Demographic: population size, age structure, ethnic mix, geographic distribution, etc. Economic: interest rates, inflation rates, budget deficits, etc. Political/legal: laws and government policies Socio-cultural: cultural attitudes and views Technological: knowledge and innovation Global: from regional to national to global level of analysis Analysis of stakeholders Stakeholders: individual or groups who can affect, and are affected by, the strategic outcomes achieved and who have enforceable claims on a firm’s performance – any group or individual who can affect or is affected by the achievements of the firm’s objectives Types of stakeholders: local communities, shareholders, suppliers, customers, governments, and employees Activists representing interests of stakeholders: consumer advocated, media, unions, environmentalist, etc. Cementos Lima’s Stakeholders: shareholders, employees, government, and community Shareholders Founded by the Prado Family 68% family owns, 32% among domestic and foreign investors Small and larger shareholders, different interests/goals Shareholders that control the majority of share have control over the firm QuickTime an decompresso are needed to see t
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They make important decisions (e.g. appointment and layoffs) and inform management about these decisions Employees “In the middle of the country’s crises, Cementos Lima is the best employment option” The primary employer for people living in this neighborhood Higher salaries, health care and other social benefits, good working and living environment High influence if they are organized, weakened by outsourcing of important asks Government Affected by operations of CL because CL is o One of the main producers of cement needed for urban development plans of the Peruvian government o A large employer o A large tax-payer Interests/goals: social welfare, political advantages (support of voters, funds for political campaigns) Influence: government has authority to make decisions that profoundly affect CL’s business; but government is also dependent on CL in many respects and thus is willing to negotiate with CL mutually beneficial solutions Community Community is affected by CL’s negative impact on local environment (pollution, noise, etc) and CL’s financial support of community projects Interests/goals: better environmental conditions, funding of community development projects Influence: neighborhood representatives have to approve CL’s transportation projects
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This note was uploaded on 04/17/2008 for the course MGCR 423 taught by Professor Okhmatovskiy during the Winter '08 term at McGill.

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Case notes(final) - Quick Tim eTM and a dec om pres sor are needed to see this pic ture Cementos Lima Macro-environmental analysis External

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