ENGIE: Strategic Transformation of an Energy Conglomerate Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

ENGIE: Strategic Transformation of an Energy Conglomerate Case Solution

The case is embeded in mid-2015, when leading management, encouraged that ENGIE had to develop a strong worldwide portfolio rapidly, obtained nine-year old French energy business Solairedirect for EUR200 million. The acquisition made ENGIE the primary solar business in France and provided it a worldwide existence and item pipeline. Solairedirect had a rewarding service design-- various from ENGIE's-- that allowed it to quickly construct energy scale solar photovoltaic setups at very competitive rates. ENGIE thought that purchasing the smaller sized business would bring a business owner spirit and brand-new method of believing to the business. Nevertheless, ENGIE had actually simply restructured along mainly geographical company systems, and Solairedirect did unfit into that organizational framework. Likewise, when ENGIE obtained Solairedirect, the solar business had actually simply experienced a not successful IPO effort. The concerns occurred regarding whether a business because circumstance was an excellent acquisition target; whether ENGIE paid the best cost for it; and how, and to exactly what degree, Solairedirect might or ought to be incorporated into the bigger company.

Knowing Objective

The goal is for trainees to discover the modifications in the international energy landscape and the strategic choices that have to be made to show the 2016 truth-- low nonrenewable fuel source rates and a shift towards sustainable. Trainees will likewise assess various organisation designs in the very same market; analyze the suitability of a purchase cost paid in an acquisition; and check out ways to incorporate little, entrepreneurial business into bigger, developed business.

In 2016, the EUR75 billion French international energy conglomerate ENGIE was enormously changing its strategic and functional important towards renewable resource. The 200-year old business owned Europe's greatest gas pipeline and was a significant worldwide manufacturer and provider of gas and other energy sources. ENGIE had actually revealed the improvement in 2014-- following a sharp come by worldwide nonrenewable fuel source costs-- seeing it as the start of a brand-new period in energy. ENGIE set objectives to double eco-friendly power capability for Europe over the next years, quickly broaden its eco-friendly footprint in high development areas just like India and China, slash its industries based upon products, and minimize expedition of oil and gas. CEO Isabelle Kocher's vision followed her belief that "the name of the game was to pioneer in the brand-new energy world."

This is just an excerpt. This case is about Business