CEMEX: The Southdown Offer

QUESTION 1: This question focuses on business level strategy:
a) What generic business level strategy is Cemex following? Be as precise as possible. Describe in detail what data you are using to support your answer.
b) How is Cemex using innovation to support its business strategy? Support your answer with data from the case.

QUESTION 2: Cemex is willing to purchase Southdown for $65 per share. This would be the largest purchase in Cemexs history. Clarence Comer, CEO of Southdown believes this offer is too low (see endnote 40 for more information on this point). Taking into consideration the three basic criteria that Cemex uses to determine if a company is a good acquisition target what options are available to Lorenzo Zombrano the CEO of Cemex? What would you recommend he do? Answering this question well will require you to find and reference the three basic tests Cemex applies and use them to analyze data in the case to support your answer.