Compagnie Generale des Eaux Case Study Example | Topics and Well Written Essays - 1000 words

Compagnie Generale des Eaux - Case Study ExampleThe efforts of Guy Dejouany declare the companys commitment in maximizing its financial resources by set them in different investment opportunities. The attracter should also be noted for his effort in minimizing company take chances by not frame inting all its investment in a single sedulousness. In contrast, he tried to distribute risk by putting the companys fund in various industries. Guy Dejouany also broadened intensified the influence of CGE by broadening its r all(prenominal) and market base. By establishing presence in industries where the company has no previous operation, CGE gained to a greater extent bargaining power through its large size and coverage. However, it should also be noted that the choice of which industry to diversify into is the sole choice of Dejouany according to his personal experiences and relationships instead of generating more formal business analyses. The drawing card has launched aggressive eff orts in mold to ward off competition or strengthen the business organizations gear up against its rivals.In terms of management style, Guy Dejouany can be characterized as a charismatic loss leader who influenced people through his personality. Though engaged in a wide array of businesses, decision qualification is highly centralized emanating from a superior who very much involved in the operations of each business unit. During his administration, transactions and relationships have operated on trust while no significant attention is put on the performance of his subordinates. Models of Diversification Employed by DejouanyKeeping in mind that CGE has started as a player in the water utility business, the companys efforts to diversify in health care, transport, telecommunication, and real estate sectors translate a move toward unrelated diversification. With this, it should be noted that Dejouany employed conglomerate diversification or opting to render new products to new mar kets which are the currently not served. In other instances, he also utilised vertical diversification by getting business organizations which are in the same value chain.Basing decisions alone in his relationships and personal experiences, Dejouany had undoubtedly entered industries which are highly unrelated. Conglomerate diversification has been used in order to manage the complexity of various businesses under a single portfolio. However, instead of utilizing the companys resources to execute similar processes at heart business units, CGE maintained the separation between its business entities. In contrast to the typical strategy of acquiring promising small companies, CGE opted to establish new companies which will serve new clients. There has also been no establish relationship between business units and often, subsidiaries are unaware that they are a part of a single organization. Problems in the 1990sThe year 1990s sees the near collapse of CGE because of its disastrous f inancial and boilers suit performance. The problems of the business organization can be traced to its larger business environment and issues inherent to its operation and governance.As discussed above, the decisions within CGE are solely made by Dejouany who build businesses