Essay about Vivendi

Case Expression

" Vivendi”

In the industrialized sector, every companies find their progression through the field of expertise of a certain activity. Allocating every single resource to the exploitation of the main organization activity engenders the creation of a core competency exclusive to the firm in question. This competency will allow the company to get competitive advantage over rivals. After recognizing the business reason of existence, the subsequent step the firm must carry is usually to develop corporate strategies that outline how the business should be conducted. Locating ways to boost the number of organization activities; that happen to be in-line while using core from the business, allows the company penetrate untrained markets and remain competitive. The company must always alter its ways of doing or even their business activities when subjected to changes in the company environment. But the question this is until what point? The firm must find the right balance between the quantity of new developments that can be taken to the company as well as the expected benefit of these advances. The company need to assure that every single business activity is central around one particular core company activity and forgo the potential of earning substantial returns with an activity that is not related to the organization. Under Man Dejouany's control, CGE generated tremendous cash flows from your management in the municipal drinking water services in France. Because revenues kept on rising, CGE became a part of " votre noyaux durs” in France and made alone a popularity across the world. But at one particular point in time, Man Dejouany moved his methods based on value-creation towards the diversity of their business practices. Earnings from the core utilities businesses allowed CGE to diversify. Most of CGE's decisions were based in expanding in to new businesses. Dejouany's approach was to allow outdoors parties that he trusted to bring all their knowledge of the marketplace to CGE. The diversity strategy stemmed from the close interactions that Dejouany established...