Autonomous University of Nuevo León

COMP ORG 123

In this paperwork I am going to analyze why the Zeyco is the biggest company in
Mexico in the industry of manufacture and sale of supplies for oral health and what
they do to accomplish the goals that they have in mind, also the participation of the
CEO Luis Zepeda. The history of Zeyco starts in 1978 when the dentist Jorge
Eduardo Zepeda when he realized that many dental supplies weren’t produced in
the country, so he invests in the right equipment and machinery to start the
production of this metal dental alloys. He designs a plan to make the company
growth and the business begins to be recognized by the other dentist within the
country, so in April of 1980, Jorge Eduardo Zepeda thought that it was time to
create and society, he called his siblings and his brother-in-law, Federica Anaya, to
form the “sociedad Aleaciones Dentales Zeyco, S.A. de C.V.” the main purpose of
this company was to be dedicated to the manufacture and sale of supplies for oral
health through from wholesalers known as dental warehouses and with a clear
strategy: ora et labora. The sales were increasing along with the clients. With the
growth in the clients, the line of products was also increasing. In 1981 the company
starts to produce and distribute dry heat sterilizers, dental vibrators, and tri-distilled
mercury, in 1983, the first disposable dental needles were distributed in Mexico
thanks to Zeyco, and in 1984 the manufacture of alginate for dental impressions
began and the distribution of injectable dental anesthetics manufactured by a small
plant in Mexico City was obtained. In the first part of the long story of Zeyco we can
see that the founders’ goal was to make bigger the company, to become the
number one in the industry and to be recognized by the odontologist around the
country. In 1985 starts to move their offices to Guadalajara to make bigger offices
and warehouses. Another important event was the purchase of a laboratory to
manufacture anesthesia, this happened in 1986 when the laboratory moved to
Guadalajara. In the following years Zeyco keep increasing their sales, clients, and
product lines, for example, a giant in the dental equipment and X-ray industry
became their exclusive supplier, and they were able to get other very important
dental lines for Mexico. To maximize growth, it was decided to strictly follow one of
the maximum goals that Arturo Zepeda had set to underpin the company's growth:
invest the profits every month. By 1999, anesthesia became the most important
product of the company, the increasing demand forced the partners to move again
to Mexico City. With this new space, it was decided to increase the monthly volume
of anesthesia produced and in different presentations, and this led Zeyco to
become in 2005 one of the dental anesthesia laboratories with the greatest variety
in the world. The market served demanded rigorous quality standards, so they
implemented the ISO and GMP standards, and with this they decided to invest in
high technology, making Zeyco the national leader with the largest market share of
injectable anesthetics. So, what we can analyze from these years is that Zeyco
found the product that will make them important in the dentist industry, that was the
anesthesia, they realized that they could gain a lot of profit from this product and
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decide to invest more money in this that any other product, and they were right, the
results were as high as they were expected. It was a big discover for the founders
and they will take advantage to become more popular along the odontologist,
maybe their vision was to export by that time.
Now I am going to explain how the old members decide to leave the company, and
how the new members, the second generation of the Zepeda’s family took the
positions on the board of directors. In the following years happen big things,
starting with new members entering to the company’s board of directors. By 1996,
the second generation of the families’ founders were participating in the company,
mostly the sons of the founders. All the family members have the goal of create a
2.0 model for Zeyco where the purpose was to improve all the things that were
done until that moment. The first second generation member in taking an important
position within the board of directors was the Jorge Zepeda’s son, Jorge Zepeda
Anaya, taking the position of strategic director, his duties were to look for new
international markets, new products, or new business opportunities abroad. Then,