Restructuring of Canal Plus Harvard Case Solution & Analysis

A second strategy was that he decided to put into practice a different cutting edge marketing strategy. His idea behind this strategy was that the Canal Plus was a top quality product based on private or limited rights therefore; the channel should acquire benefits from premium marketing promotion. Canal Plus quickly became a unique, attractive brand recognized by its own distinctiveness. Getting the inspiration from the American channel, HBO, similarly Canal Plus had also developed a sequence of several programs to support and develop more optimistic relationship with its subscribers. Just in the three year span Canal Plus not only achieved its objectives, but even achieved more than expected.

From the starting of the year1986, the managing team of the Canal Plus kept it focused on amusement and sports reporting. Back in the November 1987, Havas, who was the vital shareholder of Canal Plus take this channel to the stock exchange. This move actually enhances the trust of all the people on the channel from all aspects. The brand positioning of the Canal Plus straight away showed its optimistic effects of increased in overall revenues. By this exceptional and quick success, the group came up with an International Development Department to prepare for global expansion, specifically towards Europe. The approach was entirely based on the fact that quiet identical offerings did not completely exist in some European countries and moreover there were some possible vacant economies of scale which can be achieved, especially in the area of buying movies right.

As the time passes, companies realized the need of a leader who could take bold decisions. In this specific setup there are no as such major suppliers and vendors, all the companies has the most effective and efficient leadership and employees. For further expansion in Europe, there were some new developments in the holding company and in 1996. Messier became CEO of the Generale Des Eaux and by 1999 he was able to increase his market share by three way merger between the Canada’s Seagram and Canal Plus.

This actually became possible due to a trade of shares with the famous Richemont group that actually led Vivendi to controlling around 49% of the company's overall capital. The French administration wanted the French channel to stay autonomous, so Vivendi Universal went for a deal in which it kept around 49% of Canal Plus SA, an openly traded body that possess the ownership of the French Canal Plus channel over all operations. Other procedures included the Studio Canal, production houses and the 66% owned Canal Satellite pay TV service. Following its restructuring plan, Messier changed the name of the company to Vivendi Group. Back in the year 2000, Messier completely handed over the water and waste management setup to Vivendi and enjoys the birth of a fresh media conglomerate named as the Vivendi Universal, that pushes business units in music, TV and film, which includes Canal Plus, Universal Pictures and world famous  Universal Studios, publishing, entertainment parks, telecom and Internet.

Restructuring and Poor Human Resource

Bertrand Moheut became the new CEO of Canal plus back in February 2003. As a major part of the restructuring Bertrand core objective was to reorganize the group on very urgent basis. A thorough presentation was delivered to investors back in November 2003 which provides a broad perceptive of Meheut's strategy. In this specific presentation a detailed analysis has been provided up to 2002. When, in spite of a revenue of 4.8 billion Euros, the net loss was about 325 million Euros and had a total net debt of around 5.1 billion Euros.

There were actually four reasons which were expected to be the reason for this unfavorable situation.

Here as per these problems it can be seen there is a presence of a poor human resource department because they didn’t simply hired the experts in the concerned department. Lack of strategy reflects that there is a shortage of top level leadership who could develop the strategy for the company. There is no long term planning which could give them a path to move on. Moreover, there was no approach to control the exceeding cost on a regular basis, which is contributing negatively to the balance sheet of the company. Financial structure was also lacking some serious shortage of competent staff members because it wasn’t managed properly at all. The most important problem which needs to be given extra importance is the insufficient or poor management team. Since these issues weren’t recognized on time, therefore company’s debt has been increased up to a greater extend and the company was facing serious losses.

Later on there were some changes which proved favorable later on for the company. A new board was set up by the Bertrand and finally new and fresh talent has been introduced in the company to play there optimistic role in improvements...............................

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