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 express the go withs loading in maximizing its financial resources by putting them in different investment opportunities. The leader should also be noted for his effort in minimizing company risk by not putting all its investment in a single industry. 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 reach and market base. By take a shiting presence in industries where the company has no previous operation, CGE gained more bargaining power through its large size and coverage. However, it should also be noted that the choice of which industry to modify into is the sole choice of Dejouany according to his personal experiences and relationships instead of generating more formal business analyses. The leader has launched aggressive efforts in order to ward off disputation or strengthen th e business organizations position against its rivals.In terms of recognizement style, Guy Dejouany can be characterized as a charismatic leader who influenced plurality through his personality. Though engaged in a wide array of businesses, decision making is highly centralized emanating from a superior who very ofttimes 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 c ar, transport, telecommunication, and real estate sectors represent a move toward unrelated diversification. With this, it should be noted that Dejouany employed conglomerate diversification or opting to deliver fresh products to new markets which are the currently not served. In other inst ances, he also utilized vertical diversification by acquiring business organizations which are in the same value chain.Basing decisions solely 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 inwardly 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 stuffy collapse of CGE because of its disastrous financial and overall 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