Risk Management of Saint Gobain
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Determine whether this firm had a serious set-back and/or drop in clippings and other information sources. Explain what happened if nothing negative has happened, describe what makes this company so successful (max 1-A4)
I choose Saint-Gobain which is list in the European Stock Exchange. This company is a famous and well recognized firm in France and all around the world.
The main question is how this shaper became a European leader in distribution of building material? We notice that this company is very unique and has its own strategy to become the most famous European distributor. The company, in ten years, makes many purchases and synergies of some other firms that permit to it to constitute a European pole of distribution which generate more than 40% of its turnover. We notice that in Saint-Gobain many jobs co-existed from searchers to technicians to casher and that represent the diversification of the culture and also the diversification of its main activities (glass, canalization).
The vertical integration and its numerous synergies are the result of Saint-Gobains success and that surprise many managers of other firms because the company succeed in this strategy whereas many others failed.
The strategy of Saint-Gobain was really innovative and well organized but it also thanks to its research and development center which permit to the group to propose to their customers the best technologies and innovative products which will revolutionize the world of building material.
With all its activities, Saint-Gobain has a repartition of its turnover of: France 27.2%; Europe: 40.7%, North American 13.1% and others 19%.
In 2005, Saint-Gobain was threaten by the European commission to make a part of the cartel with three others company about the flat glass market. Asahi, Pilkington, Soliver and Saint-Gobain received a fine of more than 1.3 billion of Euros because they shared an illegal market and exchanged commercial information regarding deliveries of car glass in European Union. That was a bad thing for the group, but it stills a leader on the European Market thanks to its popularity and its very good product.
I worked in Saint-Gobain as commercial for a year and their organization processes are well structured. In fact, the success of the company is its competitive technological advantage, its reputation and its knowhow. All customers that I take care of, where really satisfied of Saint-Gobain services and products.
Create a balance score card for this company, the information doesnt have to be factual right: it is your view on the company,
Fill out all four “dimensions” with at least five critical success factors of which three factors are risk management related
Develop an appendix next to the BSC describing the rational for CSF chosen, and how they fit the company mission and strategy, how to measure them, what is the critical level on which to act, and how to act.
Mission of the company: To delight to their customers by improving and expanding their portfolio of solutions through innovation and world class business practices.
Business strategy: the company developed its portfolio of activities and it is now focus on the habitat sector which is in high development. Moreover the company always follows its strategy of innovation in order to satisfy their customer expectation and to follow innovation and new demands.
Financial targets:
European Crisis and Development: I read an article on the internet about the group and its development in Europe, the CEO of the firm is not afraid about the European crisis because that permit to the company to make more sales in period of crisis. It could be a little bit paradox because it could be very risky but it is true. European Crisis and Development could destroy the company which is French because of the depreciation of the Euro and its presence in Span, Portugal and Greece. This could turn the company in a financial crisis because they will lose customers which are present in the European countries that suffer from the European crisis. They could try to find other clients in developing country like China which no suffer from the financial crisis.
Turnover increase between 2009 and 2010. And the ROI stay equal since 2007 (Around 17%) Saint-Gobain is a leader company present since a long time on the market and their customers believe in this firm. The risk is that Saint-Gobain suddenly has a bad reputation because of a cartel or a fraud.
Economical crisis affect all segments of Saint-Gobain, it was a hard year for the company but the firm still expand its knowhow. The Company has to turn on the habitat sector which is prosper that mean that they will increase their turnover thanks to that
Financial target are already defined each month by the zone director and they are reach thanks to the demand which is increasing in every countries.
Clients targets:
Saint-Gobain