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Vivendi

In: Business and Management

Submitted By joseh
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What is Vivendi’s corporate vision? How does this firm intend to create value?
Ans: Vivendi, which also known as CGE in it’s initial days started as a water utility company in France, Under Guy Dejouany leadership, CGE diversified into a wide variety of businesses including telecommunication, healthcare and real estates. It was Dejouany’s vision, which became corporate vision a d guiding force for the CGE’s aggressive diversification. Dejouany used cash flows from core businesses of water supply, water treatment and waste management, to finance the new ventures. However due to recession and economic downturn by mid 90’s CGE started to feel the pressure and hence came a new CEO Jean-Marie Messier.

Messier redefined CGE’s vision to return to its core competencies and these were utilities (water, waste, energy and transport) and communication (telecommunications and multimedia) and Constructions and property while more emphasis on former two. Messier started to consolidate CGE’s 2714 subsidiaries into centralized controlled line of businesses. The important and critical to CGE’s corporate vision was to expand his horizontal boundaries into different businesses like Telecommunications and then vertically integrate with other companies in that business to become a major player. Messier established a corporates office and policies for capital allocation along with resource management and incentive system. In 1998 Messier changed the CGE’s name to Vivendi and reviewed the Vivendi’s corporate vision to become a major player in communications and media business through their integration with Havas and Canal plus. As per their vision Vivendi acquired Seagram in 2000 and become a global player in media and communications industry, along with the acquisition of U.S filter corp. to strengthen their core utility and environment...

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