Vivendi: Revitalizing a French Conglomerate(A) Essay

Words: 1907
Pages: 8

Executive Summary

CGE experienced glaringly different leadership styles as Jean-Marie

Messier succeeded Guy Dejouany. While Dejouany focused on vertically integrating

CGE and transforming the company into a conglomerate, Messier focused on

profitability and restructuring within the company. As Dejouany’s leadership ended with

a cash crisis and corruption scandal, Messier’s leadership led CGE’s stock to an

appreciation of 71.8% within two years after succeeding Dejouany. The leadership

change occurred at the right time. Dejouany looked at the big picture and maneuvered

CGE into a vast and profitable conglomerate at its prime, while Messier painted the

picture and refined CGE into Vivendi, focusing on
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Going through with this would mean that Vivendi

may not get the full benefit of the knowledge that Havas has in the communications

segment. If Havas is integrated into Vivendi, redundancies can be eliminated as well,

reducing the cost to do business. Also, many analysts had the belief that Vivendi’s

management would be able to add substantial value to Havas through operational and

financial restructuring (Montgomery, 13).

The water segment can continue to be serviced domestically while slowly

expanding internationally. It is their bread and butter as well as the most stable service.

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Vivendi should gain the trust of the people and government which are key factors to

succeeding domestically in this service area. Slow and steady international expansion

will add more potential for cash flows. The resulting cash flows can provide a very

stable source of funds for other expansions. However, focusing more on the water

segment could possibly mean missed opportunities in other growing areas.

Vivendi could also expand its communications domestically as well as

internationally. The communications segment provides new opportunities for profitability

in the future. The internet is also gaining in popularity among the masses, making this

option more attractive. This segment can be be invested in by the cash flow from the