CEMENTOS ARGOSLeadership, Investment and Diversification.

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COMPANY

• Argos is an international producer and marketer of cement and concrete, with a presence in Colombia, the U.S. and the Caribbean.

• Argos is a leader in Colombia and in the cement business, as is the fifth largest producer in Latin America and second largest in the southeastern United States. It has nine plants in Colombia and two in the U.S..

• In the concrete business, Argos is a leader in Colombia and fourth largest producer in the United States. Has 308 plants in Colombia, United States, Haiti and Panama. The total installed capacity is 14.5 million cubic meters of concrete per year.

HISTORY

• Argos was founded in Medellin (Colombia) on 27 February 1934 Arango Jaramillo Claudino founded by Rafael and Jorge Arango Carrasquilla, Carlos Sevillano Gomez Ceballos and Carlos Leopoldo Ochoa Arango Velez.

• In October 1936 the factory started production. Making profits from the same year, which allowed to provide its first dividend in 1938.

• Back of its association with Cementos del Nare, Argos launched a business-building efforts in different regions of western Colombia.

HISTORY

• 1998 the Corporation acquired Andean Venezuela Cement and invested in Cementos Colon in the Dominican Republic and Haiti CimenterieNationaled'Haiti INCEM Corporation in Panama.

• 2005 it merged all its cement producing companies in Colombia.• 2006 acquires concreteraReadyMixed Concrete Company in the

U.S., merged its concrete production companies in Colombia (Agrecón, Western Concrete and Metroconcreto) and cement and acquires the assets of Cementos Andino and concreteros Concrecem in Colombia.

• 2009 acquires all of the investments in the Caribbean in Cementos Colon, CimenterieNationaled'Haiti and INCEM Corporation.

PRODUCT

• Cement: Cement is a substance that unites or brings cohesion. It comes in powder and is obtained by crushing hard rocks (limestone and clay). It hardens with water and produces compounds that are highly resistant. Its duration prior to use depends on the proper storage of cement is made.

• Gray cement: Argos has three types of gray cement, the general purpose used in the vast majority of the constructs, the structural use and the oil used.

PRODUCT

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TARGET MARKET

• Focus in buildings generally, so potential buyers would be those individuals and companies engaged in the construction area as workers, builders, engineers and contractors and large companies developing large urban projects and real estate.

• The cement has a very low differentiation so the target market focuses on features and additional specifications will be established by the product.

SWOT-STRENGTHS

• It is the largest cement manufacturer in the country, with a market concentration of more than 50%.

• Barriers to entry for other companies, since it is very difficult and expensive to establish the infrastructure necessary to establish a cement company.

• It has several manufacturing facilities in different countries located in strategic locations.

• Strategic planning of the organization is geared towards the internationalization of its processes and products so that it has adopted international standards in its production and administrative processes.

• One of the best companies with revenues in Colombia.

SWOT-WEAKNESSES

• There is strong stock level as their actions are most concentrated in a few holders to be part of the GEA Group.

• Argos aims to strategic management that is given from the highest levels of GEA so sometimes they are not consistent with the kind of business that the company develops.

• Decision making is slow because it needs a consensus to implement actions.

• The power in the management business managers possess but not shareholders which may ultimately pose a risk.

SWOT-OPPORTUNITIES

• The increase of public expenditure in Colombia in areas such as construction, expansion of roads, housing development, etc..

• Oligopoly of cement and concrete that is in Colombia provided to ensure a set level of sales, since it is quite difficult to compete in this guild.

• Colombia trade agreements with various countries can subscribe to facilitate the passage of the cement.

• The country's wealth in natural resources Argos gives a wide range of minerals needed for the production of their products.

SWOT-THREATS

• As the cement made from mineral materials, there is a risk that these shortages.

• Increased demands on environmental certificates both nationally and internationally that hurt production and higher costs may be awarded to the company.

• Climate change will cause some increase costs such as transportation.

ARGOS CEMENT COMPANY

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Country to export - Taking advantage of opportunities

Country to export - Taking advantage of opportunities

• It is a country that opens doors to Colombian businessmen, which has an open foreign policy which allows entry to the market with higher expectations.

• Similarly greatly influences the TLC between Colombia and Canada, because Canada is one of the major developed economies, generating 2.6% of global GDP and is a country with high purchasing power.

• Canada will contribute to the growth and potential growth of the Colombian economy and creating more development by NAFTA has been agreed with the country Colombia has preferential access to a market 33 million consumers with high income levels.

BIBLIOGRAPHY

• http://www.argos.com.co/• GUIA PARA EXPORTAR A CANADA. Ministerio de

comercio, industria y turismo, Colombia. Proexport Colombia. Año 2006

• http://www.argos.co/site/DesktopModules/Bring2mind/DMX/Download.aspx?Command=Core_Download&EntryId=8&PortalId=0&TabId=64

• http://datos.bancomundial.org/indicador