Stock price decreased by 8% from €18,75 to € 17,30

There are several example out of this corporation that might useful for MGT656:

1. Vivendi is a highly diversified company. It is critical issue to decide whether the company is related or unrelated. Since the core competence is "entertainment", one might suggest that the company is strongly related.
Here is my theory: There might be a relation between Telecom France and Telecom Marocco where Vivendi is using a common core competence.
But again the other business units, even though they all are related with entertainment, they are not closely related to each other since each business unit is dealing with different products. The closest relation I can think of is putting a song published by Universal Music into a VideoGame which is produced by Activision Blizzard.

2. Universal Music is a perfect negative example for short-term thinking versus long-term thinking in terms of Strategy. Even though the music business is shrinking, Universal suceeded to maintain its position over the years. Thus, Universal was able to adapt and change its strategic direction due to environmental changes

3. Last but not least, Vivendi is a very good example for today's globalization. It owns companies that are worldwide established but have their origins in different countries. Vevindi is also a good example of a company that has not built its own competence but bought its competences by acquiring other companies....this is also a Corporate Strategy maybe


Answers to your questions:

I really think I would love to work for Vivendi, especially at Universal Music. The reason is because it is going to be very interesting how the music industry will continue. I am interested in how the music industry will find the way to sell its products and as result how to overcome the current situation. New methods need to be invented in order to ensure growth in the mature market

I would recommend to invest in this company since it is well diversified, thus, risk in one business unit level can be lowered by stable or growing sales in other business segments. But for sure, investing in this corporation would be long-term decision, since business models are changing due to changes in the "entertainmen industry". Right now, it is time to invest by a low stock price; I expect for instance the music industry to improve in the next few years since regulations and partnerships in the online segment will occur.



Oil Price: I expected the oil price to rise to $3.20... I thought about the summer break where people would demand more gas but it did not work...so I saw that the current oil price is 2,35. Apparently I overestimated some things :-)