Academy of Economic Studies Fabiz EnglishBucharest 2013

LAFARGE Romaniabringing materials to life

Authors: Radacina Ioana Anca, Andreea Denisa Pasarin

Table of contents

Inroduction3

General description of the company.4

Organizational goals, values, performance...6Industry analysis..9

Analysis of the strategic capability within the company..12

Organizational structure and management system analysis..14

Nature and source of competitive advantage of the company.15

Description and implementation of the strategy of the company 17

Conclusions...19

References..20

1. Introduction

Lafarge is a company that operates within the construction industry, their main activity being related to the production of cement, aggregates, concrete and gypsum. Lafarge is considered a leader in buildings materials, using resources from the heart of the earth, as they say. The company is keen on offering innovative solutions to their customers requests and reliable products and services. The company seeks for establishing long-term relationships with their suppliers, employees, customers and shareholders. Therefore, they are striving to generate value to their customers, but also to deliver the valuable products that their shareholders expect. Moreover, the company is interested in giving their employees the best working opportunities and also the chance to develop their skills. The company was founded in 1833 as a limestone mining company. They have expanded themselves in 1864 when they got an important contract in Egypt, for the construction of the Suez canal. They were the first ones that created a research laboratory specialized in cement and through this project the scientist managed to invent the aluminous cement. The company managed to have the first patent for white cement in 1921, and since then, they have expanded within the globe, achieving a milestone by their current presence in 78 countries.In Romania, Lafarge Group bought in 1997 the cement producer ROMCIM S.A. As they planned, the old plant was totally modified from the building as a whole to the technological process. Their goal was to increase industrial performances but also security performances. At present, Lafarge Group is present in Romania through two cement plants one in Medgidia and the other one in Hoghiz, and a grinding station in Targu Jiu.

2.General description of the company

Lafarge S.A. is a Limited Liability Company (Socit Anonyme) incorporated in France under French law. We produce and sell building materials cement, aggregates, ready mix, asphalt, concrete, gypsum wallboard, and related products worldwide, mostly under the Lafarge brand name.

Our products are used to build and renovate residential, commercial and public works throughout the world. Based on sales, we are the world leader in building materials. Based on internal and external research, we are believed to bethe world leader in the cement market, the second largest aggregates producer, the third largest concrete producer and the third largest gypsum wallboard manufacturer worldwide.

Our reporting currency is the euro (). In 2010, the Group generated 16,169 million euros in sales, and posted a current operating income (as defined in Section 4.2 (Accounting policies and definitions)) of 2,441 million euros and net income, Group share of 827 million euros. At year-end 2010, its assets totaled 42,494 million euros and the Group employed approximately 76,000 people in 78 countries. Lafarge shares have been traded on the Paris Stock Exchange Nyse Euronext since 1923. They are a component of the CAC 40, the principal market index in France (and have been in such index calculation since the beginning). Our market capitalization totalled 13.4 billion euros at December 31, 2010.

Lafarge S.A. was incorporated in 1884 under the name J. et A. Pavin de Lafarge.Our corporate term is due to expire on December 31, 2066 and may be extended pursuant to our by-laws. Our registered office is located at 61, rue des Belles Feuilles, 75116 Paris, France, and our telephone number is + 33 1 44 34 11 11. We are registered under the number 542 105 572 RCS Paris with the registrar of the Paris Commercial Court (Tribunal de commerce de Paris).We began operating around 1833 when Auguste Pavin de Lafarge set up a lime operation in France. Through numerous acquisitions of lime and cement companies throughout France, we became Frances largest cement producer by the late 1930s.

Our first foray outside France took place in 1864 when we supplied lime for construction of the Suez Canal. Our international expansion continued in the 20th century when we set up operations in North Africa and the United Kingdom, and later when we began doing business in Brazil and Canada. Through our 1981 acquisition of General Portland Inc., we became one of the largest cement manufacturers in North America. We conduct these operations principally through Lafarge North America Inc., now a wholly owned subsidiary following our acquisition in May 2006 of the interests previously held by minority shareholders.

We further expanded internationally through the purchase of the British cement company Blue Circle Industries plc (Blue Circle) in 2001 and further acquisitions, mainly around the Mediterranean Basin, in Central Europe, and in Asia. The January 2008 acquisition of Orascom Building Materials Holding S.A.E (Orascom Cement), the Cement activities of the Orascom group, provided us with a leading position and unparalleled presence in Middle East and Africa.

This transaction represented a decisive step in the Groups Cement strategy, diversified our worldwide presence, and accelerated our growth in emerging markets. We are the world leader in the cement industry, with sites in 50 countries. We have also broadened our other product lines of aggregates, concrete and gypsum plasterboard. Our aggregates and concrete business, now operating in 36 countries, developed progressively over the years and made a significant leap forward in 1997 with the acquisition of Redland plc, one of the principal manufacturers of aggregates and concrete worldwide at the time, and to a lesser extent through our acquisition of Blue Circle in 2001.

We first entered the market for gypsum products in 1931, with the production of powdered plaster. Since then, we have become the worlds third largest wallboard producer, offering a full range of gypsumbased building solutions, with operations in 30 countries.

In February 2007, we sold our Roofing Division, which we acquired through our 1997 acquisition of Redland plc. We have an organizational structure based on our three Divisions, with decentralized local operations and strong corporate expert departments, which are involved in strategic decisions. We also draw on a shared culture and shared ambitions with all our employees,

The Group conduct its operations through more than 1,000 subsidiaries, out of which 82% are consolidated. Further to the divestment of a majority of the gypsum assets and the fundamental changes to the management structure, the Group has fully refocused on its core businesses of cement, aggregates and concrete. The strategic shift will accelerate growth and innovation.It has an organizational structure based on our three Divisions, with decentralized local operations and strong corporate expert departments, which are involved in strategic decisions. Cement: Lafarge has 161 plants in 58 countries Aggregates and Concrete: more than 1 395 production facilities and sales offices in 36 countriesThe headquarter of the Group is based on Paris (France).The objective of the Groups remuneration policy is to reward and retain key talent while providing managers and employees with an opportunity to share in the success of the Groups business through the grant of stock-options and performance shares (free allotment of shares), which are connected to the Groups long-term strategy. Stockoptions are granted to senior management and the Chairman and Chief Executive Officer. Performance shares are granted to middle management, expatriates and other employees in recognition of their commitment and achievements for the Group. Since the Board of Directors meeting held on March 15, 2011, performance shares may also be granted to the Chairman and Chief Executive Officer and senior management.In April 2013, Lafarge adopts a new brand baseline Building better cities. It reflects the Groups ambition to contribute to the improvement of cities by developing innovative construction products, solutions and systems.Lafarges contribution to better cities addresses some key challenges of urbanization:contribute to more housing in cities; contribute to more compact cities; contribute to more durable cities; contribute to more connected cities; contribute to more beautiful cities.On July 11, 2008, the Albany Times Union reported that Lafarge's Ravena, New York plant "was the greatest source of mercury emissions in New York from 2004 to 2006". According to the story, plans have been made to upgrade the plant to reduce the mercury emissions. A second story, published the following day, stated that the factory had emitted 400 pounds (181 kg) of mercury annually from 2004 to 2006. In November 2010 Lafarge, together along with other companies, opposes new EPA regulations that require mercury-emissions reductions at cement plants. Preliminary data published by the EPA for the year 2009 showed 145 pounds of mercury were recorded for the Ravena plant (total on- and off-site disposals). The plant has continued to perform within permitted limits.

3.Organizational goals,values, performance.

VisionThe companys vision is the following: To be the undisputed world leader in building materials. To accomplish it they are building within their organizational culture by strengthening their relationships with international partners and especially with their employees and shareholders. Moreover, they are continuously investing in research as to be ahead of competitors and develop new materials that will satisfy in an easier way the needs of their customers.MissionThe mission of the company is to provide construction industry with products, systems and solutions which are the most reliable, innovative and cost-effective. Their aim is achieved since they are the world leader in each of the business lines. This fact has contributed to the opportunity to shape and develop the future of the construction industry. Their goal is to strengthen the leadership position by being the best and their commitment to be the preferred supplier, company, partner and investment. Corporate ValuesThe main and solid values on which Lafarge Romania guides their actions are Respect, Care and Rigor. When it comes to the development of the company, Lafarge Romania takes into consideration integrity, ethics, courage, empathy, openness and commitment. Those are the essential values that are located at the basis of the consolidation of an international company.

Our goal is to create shareholder value.

To achieve this, the Groups strategy aims at strengthening our position as world leader in building materials, in terms of market share, innovation, recognition by customers, geographical portfolio, and profitability.

We have two strategic priorities: cement, primarily in emerging markets, and innovative products and solutions, particularly construction systems, including sustainable construction solutions. Over the past twenty years, world cement consumption has significantly increased with an average rate of growth above 5% per year.

Despite the economic and financial crisis, global cement demand grew by approximately 9% in 2010, supported by the dynamism of most large emerging markets, particularly China, Brazil, India and Sub Saharan Africa. Mid and long-term prospects for cement demand remain favorable, especially in these markets, where demography and urbanization drive the needs for housing and infrastructure. Emerging markets account for 74% of Groups current operating income (77% for the Cement Division) in 2010.

We believe that we are in a very good position to benefit from this long-term fundamental growth thanks to our well diversified geographical portfolio, strengthened during recent years by our cement capacity increase program and the acquisition of Orascom Cement in January 2008. Most of our new production capacity projects are located in emerging markets. The Group will seize the opportunities to participate in the consolidation of the cement market, including when necessary, by intensification of the aggregates and concrete vertical integration.

Our second strategic priority is to develop our sales of innovative building materials, systems and services that meet the expectations of our clients in terms of sustainable construction, aesthetics and cost. The experience accumulated by the Group in the developped markets was considerably enriched by our development in emerging countries.

The combined effect of the cross-fertilization between our various geographies and the increase of our Research & Development and testing capabilities has led to a broadening of our product range and services.

These higher value added products and systems aim at meeting the increased expectations of our clients in terms of performance, ease of use, reduced application time and recycling. Sustainable development is core to the Groups strategy.

It encompasses: preservation of the environment and combating climate change (limited raw materials extraction, emissions reduction notably CO2 and biodiversity promotion), health protection and medical care for our employees and neighboring communities, and more generally the Groups social involvement, as illustrated by the Groups actions following natural disasters.

Furthermore, Lafarge has three operational priorities:

the first is the day-to-day health and safety of the women and men who work for the Group, be they on the payroll or with sub-contractors, on site or on the road.Between 2008 and 2010 (based on our 2007 business scope), we managed to reduce by 36% the number of workplace accidents resulting in sick leave, demonstrating our commitment to deliverin this area;.

the Groups second operational priority is cost-cutting. This was reflected in the resilience of our operating margin permitted by 220 million euros structural cost savings in 2010, as we continued to optimize our industrial processes and organization;

OUR AMBITIONTo be a world leader in construction materials. Be recognized as an important participant and shape the future of our businesses through our capacity to innovate. Be a leader in a competitive environment. Pursue long-term strategies. Adopt an international approach.

4. Industry analysis

Industry drivers:

Key Drivers of Cement Industry: Bouyant real estate market Increase in infrastructure spending (budget spending) Various governmental prohrammes like National Employment Guarantee Low-cost housing in urban and rural areas under schemes like JAWAHARLAL NEHRU NATIONAL URBAN RENEWAL MISSION(JNNURM) and INDIRA AAWAS YOJANA

Product Differentiiaton: India is producing different varieties of cement, based on different compositions according to specific end uses, like ORDINARY PORTLAND CEMENT (OPC_, PORTLAND POZZOLANA CEMENT (PPC), PORTLAND BLAST FURNACE SLAG CEMENT (PBFS), OIL WELL CEMENT, RAPID HARDENING PORTLAND CEMENT, SULPHATE RESISTING PORTLAND, CEMENT AND WHITE CEMENT, etc. The basic difference lies in the percentage of clinker used. These different varieties of cement are produced strictly unde BIS specifications and the quality is comparable with the best in the world Percentage of production of PORTLAND POZZOLANA CEMENT has steadily increased from 17.3% in 1989-90 to 60.12@ in the year 2006-07. This is favorable change in the product mix of Indian cement industry as PPC in more specialized type of cement

In an environment of growing competition witnessed in the post decontrol era, one of the major developments has been the introduction of higher grades of cement.

Industry Centralization: Through the industry saw consolidation by domestic players starting in te mid 1990s, it was only in the late 1990s that foreign players entered the market The structure of the industry can be viewed as fragmented, although the concentration at the top has increased, as the top 5 players control around 60.28% of market share, which was 55% in 1989-90, whereas the other 39, 72% of market share is distributed among 50 minor players The fragmented structure is a result of the low entry barriers in the post decontrol perod and the ready availability of technology

Industry Integration: Economies of scale resulting from the larger size of operations Savings in the time and cost required setting up a new unit Access ti newer markets Access to special markets Acces to special facilities/features of the acquired company Benefits of tax shelter.

The cement sector notably plays a critical role in the economic growth of the country and its journey towards conclusive growth. Cement is vital to the construction sector and all infrastructural projects. The construction sector alone constitutes 7 per cent of the country's gross domestic product (GDP). The industry occupies an important place in the Indian economy because of its strong linkages to other sectors such as construction, transportation, coal and power. India is the second largest producer of quality cement in the world. The cement industry in India comprises 183 large cement plants and over 365 mini cement plants. Currently there are 40 players in the industry across the country.The cement industry in India is experiencing a boom on account of overall growth in the economy. The demand for cement, being a derived one, depends mainly on the industrial activities, real estate business, construction activities and investment in the infrastructure sector.The cement industry of India is expected to add 30-40 million tonnes per annum (MTPA) of capacity in 2013. The industry has a current capacity of 324 MTPA and operates at 75-80 per cent utilisation."It is anticipated that the cement industry players will continue to increase their annual cement output in coming years and the country's cement production will grow at a compound annual growth rate (CAGR) of around 12 per cent during 2011-12 - 2013-14 to reach 303 million metric tonne (MMT)," according to a report titled 'Indian Cement Industry Forecast to 2012', by research firm RNCOS.

5. Analysis of the strategic capability within the company

SWOT Analysis

Strengths Worldwide expansion Best research facility Well known brand Environmental friendly Customer-orientedWeaknesses Costly industry Scarce resources

Threats Local competition Environmental damages Legal issuesOpportunities Emerging markets R&D laboratories

PEST AnalysisThe PEST analysis analyzes the external environment of a company by assessing the impact of generic forces, like politics, education, social and technology: Politics: In Romania, there is a general state of confusion and uncertainty and this is mainly because of the poor management of the state at macroeconomic level. Education: Within Lafarge the employees have a high level of education since the company conducts the recruitment process based on some specific standards settled at international level. None the less, the management of the company is not always pleased with the workforce that is available at present in Romania and they are constantly investing in their employees by offering trainings and studies inside the company in Romania or abroad. Social: Being a company that has expanded worldwide, they have learned that taking into account the intercultural differences that a new market implies are very important in developing an efficient business. Thus, the integration of the employees within the organizational culture in Lafarge is done since the very beginning of the recruitment process. Technology: Lafarge Romania develops the business in Romania in compliance with the model established by the Group, as all the equipments are standardized. They are working with the same type of equipment worldwide, including in Romania.

The future possible resistances

When it comes to future, Lafarge knows what the next steps to take are. Their main concern is to create sustainable development as this ambition is integrated in their day to day activity and also in their vision.Lafarge plans to implement within the plants from Romania strategies on major issues, such as the areas where the company has the biggest impact, the environmental and social challenges that the company faces but also the areas where the company can make a difference in order to positively influence the industry.At the management level, the Romanian subsidiaries offer a special care to the security of the employees as their target number is 0 since 2005, and the number of accidents on the job decreased since then. In terms of fair competition, it is annually tested in order to comply with the competition policy.In Romania, they aim to be a good neighbor for local communities and to contribute to the well-being and to the economic and social development of the community around the sites. They will also establish trainings on local stakeholder relationship management for the subsidiaries to conduct best practices.In order to assess themselves in terms of customer satisfaction, they are conducting annual surveys regarding customer satisfaction and their goal is to achieve in next the years exceeded annual sales in new products developed to meet customer needs. In order to achieve this objective, they have to commit to their employees also, since they are continuously investing in their employees skills. Lafarge is a company that puts value on the environment since they are conducting actions in order to preserve the biodiversity, due to the fact that the number of the quarries that Lafarge operates can have an impact towards biodiversity. Together with WWF, the company has developed the biodiversity index, which helps them monitor and manage the ecological evolution of its sites and preserve biodiversity. Another important aspect that contributes to the environmental protection is the actions driven by Lafarge in order to reduce the emissions of CO2 by using new technologies and substitute materials. They plan to reduce their CO2 emissions more than 20% in the future years.

6. Orgaizational structure and management system analysis

Management of the company

The theory says that within a business there are three types of processes: management, operational and supporting processes. While the management processes are the ones that govern the operation of the system and the operational one deal with the processes within the core business. The supporting processes are the ones that support the activity of the business such as accounting, recruitment or technical support.In this chapter the focus will be mainly on the management processes, thus, on the strategies that Lafarge implements within the Romanian market. The companys strategic planning in Romania is in concordance with their vision which is: To be the undisputed world leader in building materials. Their aim is to provide the construction industry with products that are reliable, innovative and cost-effective. They are committed to invest in their relationships and to strengthen them as to become the preferred company, supplier and partner.In which concerns their strategy, the main goal of the Lafarge Group is to create shareholder value and to achieve this, the company aims at strengthening their position as world leader in building materials, in terms of market share, innovation, recognition by customers, geographical portfolio and profitability on both global and local areas.One of their main priorities is the cement in emerging markets and innovative products and solutions in construction systems. Despite the effects of the economic crisis, the demand for cement in 2010 was of 9% and the consumption increased with 5% per year in the past 10 years over the world. Regardless of the fact that in Romania in the past 5 years the cement market stagnated, the company managed to remain on the first position among their competitors. The other priority of the company is to develop their sales of innovative building materials, systems and services that meet the expectations of their customers in terms of sustainable construction, esthetics and cost. In Romania, the company will seize the opportunities to participate in the consolidation of the cement market, by intensification of the aggregates and concrete vertical integration.

7. Nature and source of competitive advantage of the company

Competitive advantage emerges from internal sources where companies have greater creative or innovative capabilities and from external sources arround changing customer demands, prices and technological change.Any change in the external environment brings with it an opportunity for profit and entrepreneurship is the ability to identify and respond to that opporunity. With markets becoming increasingly turbulent, this ability to respond can be said to be a competitive advantage in itself, if it is a better ability in relation to other companies that is. It also means that you anticipate future changes and hence you need information (resource) and flexibility to respond (capability). This moves organizational structure, decision-making systems, job design, and culture to the center of an organizations capabilities. The faster you can respond, the less you need to rely on forecasts.We produce and sell an extensive range of cements and hydraulic binders for the construction industry, including basic Portland and masonry cements and a variety of other blended and specialty cements and binders. We offer our customers a broad line, which varies somewhat by market. Our cement products (all of which are referred to as cement in this report) include specialty cements suitable for use in a variety of environmental conditions (e.g. exposure to seawater, sulfates and other natural conditions hostile to concrete) and specific applications(e.g. white cement, oil-well cements, blended silica fume, blended fly-ash, blended pozzolana, blended slag cements and road surfacing hydraulic binders), natural lime hydraulic binders, masonry cements, andground blast furnace slag. We design our cements to meet the diverse needs of our customers, including highperformance applications for which enhanced durability and strength are required. We also offer our customers a number of extra services, such as technical support in connection with the use of our cements, ordering and logistical assistance to ensure timely delivery to the customers, plus documentation, demonstrations and training relating to the properties and appropriate use of our cements.We have developed significant expertise in cement manufacturing through our experience of operating numerous cement production facilities worldwide for over 175 years. This expertise has been formally documented and is passed on via our Technical Centers, which employ over 600 engineers and technicians worldwide. We strive to share our collective knowledge throughout the Group to improve our asset utilization, lower our production costs, and increase the product efficiency. Through this culture of knowledge-sharing, we also endeavor to disseminate best production practices and employ benchmarking tools worldwide to drive superior performance and unlock continuous operating improvements.

In each of the major regions in which we operate, we sell cement to several thousand customers, primarily concrete producers, precast concrete product manufacturers, contractors, builders and masons, as well as building materials wholesalers. Our cement is used in three major segments of the construction industry: residential, non-residential construction and infrastructure projects. Cement performance characteristics and service requirements from our customers vary widely depending on the projects for which our cement is used, as well as their experience and expertise. We strive to meet our customers diverse requests and to deliver quality, distinctive and targeted solutions enabling them to create more value in their businesses.Our customers generally purchase cement from us through current orders in quantities sufficient to meet the needs of their building or renovation projects.

Innovation remains one of the Groups two strategic priorities. The Groups R&D activities focus on three main objectives: researching new products and systems that offer increased added value solutions to our customers,developing our product ranges to respect our commitments in terms of sustainable construction, and implementing processes and products that help reduce CO2 emissions. In 2010, the overall Group expenditure for product innovation and industrial process improvement was 153 million euros, compared to 152 million euros in 2009 .

Information on the share buyback program to be approved on May 12, 2011

Program objectives: the implementation of any Company stock-option plan under the terms of articles L. 225-177 et seq. of the Commercial Code or any similar plan; or the allotment or sale of shares to employees under the French statutory profitsharing scheme or the implementation of any employee savings plan under applicable legal conditions, in particular articles L. 3332-1 et seq. of the LaborCode; or the allotment of consideration free shares pursuant to the terms of articles L. 225-197-1 et seq. of theCommercial Code; or generally, to fulfil obligations linked with stock-option programmes or other share allotment schemes in favour of employees or executive officers of the Company or related entities; or the delivery of shares on the exercise of rights attached to securities giving rights to the capital by redemption, conversion, exchange, presentation of a warrant or any other means; or the cancellation of some or all of the shares purchased, pursuant to the 15th resolution approved by the Combined General Meeting on May 12, 2011; or the delivery of shares (in exchange, as payment, or otherwise) in connection with acquisitions, mergers, demergers or asset market-making in the secondary market or maintenance of the liquidity of Lafarge shares by an investment services provider under a liquidity contract that complies with the ethical code recognized by the Autorit des marchs financiers.Period 18 months, until November 12, 2012. As at February 28, 2011, the Company held 363,558 shares with a nominal value of 4 euros representing 0.13% of its capital stock, all of which are assigned to cover stockoptions or performance share grants.The Company has no open purchase or sale positions in relation to its share buyback program approved on May 6, 2010 on the date of publication of this Annual Report.

8. Description and implementation of the strategy of the company.

Strategy development & implementation

Even since 1833, the Groups strategy has been built on two pillars: development and innovations. Thus, their strategic priorities in the present are to continue the development of the production of cement in emerging markets as well as to accelerate the innovation process in sustainable construction and construction systems. They plan to have a rapid growth that will bring value to the customers. One of their objectives is to grow at a double-digit annual rate over time and they plan to achieve it by accelerating the internal growth through the development of innovative products, systems and solutions, developing other businesses related to the building materials that will help them become worldwide leaders.Steps must be implemented locally, therefore in Romania also, meaning that every country must contribute to the global development, as subsidiaries from Romania do, by motivating employees to express their talents, empowering them. They are also implementing several tools that will help employees to focus on adapting the best practices to local conditions and ways to innovate. As in Romania Lafarge Group is present in 3 cities, they try to offer differentiated solutions in order to meet customers needs by using a method of continuous improvement.Their practice in which concerns the customer, is to provide them the value to their businesses that other competitors could not. As they are a customer-driven organization, they are involving their employees in the process of making quality. In this regards they measure their performances in terms of customers loyalty and satisfaction.Lafarge is a company that relies on the environments resources, therefore their goal is to succeed in creating sustainable value by contributing to social, economic and environmental progress. They plan to achieve it through 3 main ways. Firstly, they will be focus on their internal resources, which are the human resources, as they are providing them the opportunity to develop in a healthy environment. Also, they ensure that the rights and well being of their employees are respected. Secondly, they are concerned about the environment, as they engage in activities that seek for environmental protection, in the mitigation of climate change and in the conservation of non-renewable resources. Moreover, they are committed to economic progress through healthy and vigorous competition, their actions being in compliance with local and international laws and standards, as it is about aligning their actions with their values.The ChallengeHeadquartered in Paris, France, Lafarge has approximately 68,000 employees in more than 60 countries generating annual sales of 15.2 billion euros. For many years, the company sought an efficient way to adjust the capacity oftraditional big-iron data centers to match business requirements. Lafarges experience with virtualization demonstrated the gains they could achieve. However, in order to move the ERP systemthe heart of the business to a virtual environment, the company needed a reliable infrastructure from a vendor it could trust. In Vblock Systems, Lafarge found the levels of availability and flexibility it requires.

The SolutionOne of the largest multi-national users of Oracles JD Edwards EnterpriseOne solution, Lafarge has taken the lead in optimizing the software to run in a virtualized environment on Vblock Systems. In addition, the company relies on its Vblock system to run IBM Cognos for business intelligence. Lafarge is rolling out its innovative data center strategy first in the Americas region, which accounts for 27% of its global sales. The Vblock Systems strategy enables the company to nimbly respond to changes in business conditions while making the most of regional IT resources.The new approach also abandons the traditional, warm-site, disaster recovery (DR) model in favor of a metro-cluster strategy that allows the company to use its DR resources for development, quality assurance, and other needs. The company will federate its original data center with a second center planned in close proximity to the firstoperating the Vblock Systems as a high-availability pair rather than as a production system and active standby.This will improve resource utilization and allow IT to migrate workloads on the fly between data centers.

9. Conclusions

Lafarge Company is definitely the leader in terms of cement production on the Romanian market since it provides differentiated qualitative products in concordance with the customers needs. Being a customer-oriented company their aim is to create sustainable development in both market and construction materials.They have achieved to be the world leader, benefiting from their well known brand all over the world, but also by implementing practices that are environmental friendly since their new production systems in Romania are cost and energy efficient, but also contributes to the reduction of CO2 emissions.Being a company that supports their employees by offering constant trainings, by encouraging them to share ideas and opinions, they have achieved in constructing a culture within their employees and also a high level of motivation among them.Moreover, the annual investments in research gives Lafarge a plus over the competitors since they are keen on offering new materials that could be of greater usage for the employees, environmental friendly and cost efficient.The overall opinion is that Lafarge is a complex company and not just a simple cement producer. Given the fact that they are involved in different social and environment activities, leads to the following thoughts: Lafarge is a leader not only in terms of sales but a leader in terms of business, offering a good example to others and being a role model of business for them.

References

1. Business Management, Prof. univ. dr Constantin Bratianu, Asist. Univ. drd. Simona Vasilache, Asist. Univ. drd. Ionela Jianu, Editura ASE, Bucuresti, 20062. www.lafarge.ro3. www.lafarge.com4. www.wikipedia.ro5. Course lectures

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