Get instant access to this case solution for only $15

Vivendi B Revitalizing a French Conglomerate Case Solution

Solution Id Length Case Author Case Publisher
2721 1241 Words (6 Pages) Cynthia A. Montgomery, Rhonda Kaufman Harvard Business School : 703418
This solution includes: A Word File A Word File

Vivendi, a media company, expanded its capacity into the new realms of internet and globalization in the early 2000s, spearheaded by the company’s CEO Messier. The CEO anticipated the wide spectrum of opportunities offered by the internet and its ability to digitalize every sports and entertainment event; however, acquisitions were made beyond cultural boundaries by Messier. Thus, the board was forced to oust its reign after the exponential expansion of Vivendi Universe by the second quarter of 2002. In the case study, it is noticed that the company failed to maintain the stock prices of their purchased company and investors were losing their trust in the company while looking for cash settlements on their investment. The board, on the contrary, had other plans, which ousted the old CEO and replaced him with a compelling new CEO named Fourtou. The tenure of Fourtou began with regaining the confidence of French investors that highlighted the inception of the company.

Following questions are answered in this case study solution

  1. Did Vivendi achieve synergy among its many businesses? If so, what kinds of synergy, and how did they achieve that? If not, what did they do wrong? Be as specific as possible!

  2. What do you think are the reasons behind the various crises of Vivendi after 2002? Who and what are to blame? Why? Be as specific as possible!

Case Analysis for Vivendi B Revitalizing a French Conglomerate Case Solution

1. Did Vivendi achieve synergy among its many businesses? If so, what kinds of synergy, and how did they achieve that? If not, what did they do wrong? Be as specific as possible!

Vivendi comprehensively failed to achieve synergy among the new acquisitions it made during the early 2000s as part of the expansion strategy in the media and entertainment business. The business operated in the environmental sector, which was far from the operational capacities of the communication sector. The French company miscalculated the cultural gap between France and the western states. The entertainment industry is primarily observed as the cultural teacher for the upbringing of their locals, along with solidifying the backgrounds of the people. However, the acquisition of American media houses was the major setback for the company as their strategy was not backed by the French government. Moreover, the company which sold its primary business to step into the new ones was targeted as the company’s cumulative debt amidst expansion kept on rising. The acquired companies posed a significant threat to the traditional business of Vivendi as the newly acquired business inherited the debt along the change. Messier’s strategy in return for the existing debts was the sale of existing assets of the company in order to ensure cash flow to satisfy the board of directors.

The company significantly faced pressure from the government as they were inflicting a western culture on their people; however, it is noticed that the capitalistic nature followed in the west was not a part of Europe despite globalization. Vivendi’s expansions into the entertainment industry meant for it to preach the traditions of France rather than bring the western culture into France. Thus, the lack of trust amongst the board members led to a sudden end in the reign of Messier as Vivendi’s CEO.

Get instant access to this case solution for only $15

Get Instant Access to This Case Solution for Only $15

Standard Price

$25

Save $10 on your purchase

-$10

Amount to Pay

$15

Different Requirements? Order a Custom Solution

Calculate the Price

Approximately ~ 1 page(s)

Total Price

$0

whatsapp chat icon

Hi there !

We are here to help. Chat with us on WhatsApp for any queries.

close icon