Case Study RUPEE 25/11/2009
1. Presentation of GDF SUEZ Key figures Activities of the society 2. The Market Position in the market Competitors Clients & suppliers 3. The Strategy of the company 4. SWOT Analysis and IEDIS Analysis
1. Presentation of GDF SUEZ 22th July 2008 : Creation of the group Key figures for 2008 : employees throughout the world 83,1 B€ revenues
1. Presentation of GDF SUEZ
1. Presentation of GDF SUEZ Which Businesses ? All energy services : producing, selling, … All environmental business areas Which Energies ? Diversity of means of production 2 Key Energies : Natural Gas and Nuclear Energy
1. Presentation of GDF SUEZ
1. 2. The Market 3.4. Position in the Market NLG: 1st purchaser in Europe 1st importing company in USA 2nd owner of LNG tankers in Europe Electricity production: 5th producer in Europe 1st private producer in the world Energy services: 1st provider of communities and companies in Europe 3 rd stock capitalization of energy sector
Competitors The Market st $140 B 17% world gas production 2 nd $127 B 30 countries coworkers
Clients & Suppliers The Market 3.4. Widely international activity
10 Demographic growths Urbanization Economic/industrial development Energy demandEnergy reserves Sustainable Environment Core Strategy 4.
Diversity of the activities Improvement of productivity in nuclear power Business growth on the sale of gas Improvement of Profitability by actions takens under the plan Efficio Increase in the ordinary dividend Good level of cash to complete acquisitions and seated positions Experience and know-how Involvement in sustainable development The strategy of the company 4.
Instability of raw material prices Overflow of transportation networks Dependence on its domestic market Negative impact of the crisis Decline of net income due to an increase in debt Political and legal risk The strategy of the company 4.
Strengthen leadership Widen service for the customers Acceleration industrial development and electricity production Strengthen business growth in Europe Strengthen business growth in developing countries B€ investment in 3 years The strategy of the company 4.
14 ‣ Innovation New products and services ‣ Integration in the society Security, safety, transparency ‣ Know-How Skilled, motivated personnel The strategy of the company 4.
The strategy of the company 4.
09/10/09 "L'année 2010 pourrait décevoir le marché, et nous sommes moins confiants dans la capacité de GDF Suez à atteindre son objectif d'un excédent brut d'exploitation de 17 à 18 milliards d'euros en 2011 ». (analyste chez HSBC) «Plusieurs freins: une forte chute de l'activité de gaz liquéfié aux Etats-Unis, des ouvertures de sites industriels repoussées et un impact limité de la reprise des prix du gaz. » 29/10/09 « Dans le pays, le groupe français vise trois ou quatre réacteurs nucléaires à l’horizon 2020, dont un ou deux EPR. Depuis la crise russo-ukrainienne de l'hiver dernier, l'heure est à la sécurisation des approvisionnements en gaz en Europe et notamment en France. » The strategy of the company 4.
Strength Gas and electricity European Leader Energy field in development A Worldwide company Strong diversity (nuclear, renewable energies, gas) Since the merger between GDF and SUEZ, company is big enough to avoid takeovers and to reduce the shared costs: critical size and synergy Both Gas and Electricity offers for customers Gas can be stocked: Possibility to respond to the energy demand Weakness GDF Suez produces only 10% of its gas, and depends on competitors for gas production (Gazprom, Statoil, Sonatrach, Gasunie) GDF Suez weakened by the financial crisis: government contribution of 8 billion Euros Opportunity Investments in nuclear power plants (UK, France) and desalinization plant (Qatar) Opening of the European electricity market in July 2007: EDF has no longer the monopoly in France Threat Possible new gas crisis with Gazprom like in January 2009 (42% of EU imports come from Russia) Increased number of competitors due to the opening of the electricity market in July SWOT and IEDIS Analysis
SWOT and IEDIS Analysis Identification des risques Evaluer les risques Développer un plan d’action FinancierPerte d’un gros client FaibleEviter d’avoir 1 trop gros client, priviligier beaucoup de petits clients Non solvabilité d’un gros client FaibleContrat d'assurance avec les banques Impact de la crise : baisse des ventes FaibleDiversifier ses activités pour diversifier la palette des clients Arrivée d’un nouveau concurrent ImportantProposer de nouveaux services Risques naturelsCatastrophes naturelles touchant les ressources d'énergies MoyenRéaliser des études environnementales pour pouvoir mieux faire face Pénurie d'un type d'énergie Faible à MoyenDiversifier les formes d'énergie
SWOT and IEDIS Analysis Identification des risques Evaluer les risques Développer un plan d’action RéputationPerte de l'image de marque MoyenAssurer un bon suivi des clients, faire de la publicité. Incident technique, non approvisionnement des clients Faiblemaintenance préventive des installations Risques politiquesRisques politiques dans les pays où se situent les matières premières Moyen à ImportantEtude de marché avant de s'implémenter dans les pays, signer des contrats clairs,... Fluctuation du cours des matières premières FortOptimisation des coûts et revenus, diversification de l'origine des énergies Risques humains et environnement Evolution dans un environnement de travail dangereux, explosion, fuite de gaz Faible à importantMaintenance préventive des installations, installations de capteurs