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Analysis on the group of JC Decaux SA

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  1. Introduction
  2. Summary of the text
    1. Different internationalization strategies
    2. Organizing for the International
    3. Managing human resources abroad
  3. Application examples
  4. If Carrefour
    1. Presentation of Carrefour
    2. Carrefour and its general approach to international
    3. The method of remuneration of expatriates in the Carrefour Group
    4. Return management in the Carrefour Group
  5. If Nestle
    1. Career management group's international Nestle
  6. Personal analysis
  7. Conclusion

The group JC Decaux invests on an average of about 200 million Euros each year to fund its growth. It is important to note that the investment turns primarily to urban furniture as the detriment of other areas of strategic activity. This seems consistent strategy for several reasons: the group holds the free cash flow which is necessary to self-finance its growth and the company is not a contestable market.

Thus, JC Decaux ensures greater progressivity in general since it is the same information systems, the same recruitment techniques and same distribution techniques are used. The result is uniform and therefore supports the creation of value.

Thanks to its acquisitions policy, JC Decaux was capable to: Benefit from rapid growth, start new businesses and acquire quickly a new market share, particularly in transport and display activities, entering new markets which were difficult despite of the cultural barriers, better control lobbying which is now considered as a key element of success model.

Therefore, the strategy chosen by JC Decaux to grow depends on the markets in which it wishes to locate. Far from a rigid dogmatism, the company can be seen as a pragmatic, alternating partnerships and strategic acquisitions, thereby avoiding too much debt and therefore the destruction of shareholder value, as in the founding family of the group.

JC Decaux has made the strategic decision to focus its growth on the internationalization, diversification of supply and differentiation.Through these strategic choices, the group's turnover has grown steadily since 2003 to 1.9 billion euros in 2006.

This report will show that to tackle the outdoor market, growth is a condition of survival. Indeed, the search for a larger size allows JC Decaux not suffer the disabilities associated with competition (control of the forces of competition). First, through internal growth is justified to the extent that the companyis on a global carrier market located in a trade which it has control.

The growth of JC Decaux is reflected in the company's ability to develop new means of production and to respond, to increase its logistics capabilities, but also to increase the number of cities where it operates.

JC Decaux has indeed quickly realized that to occupy a leading position in the market, it had to turn to international markets.Thus the company began its internationalization in the late 90s with the objective the establishment of a strong external policy of expanding its business portfolio.

The work of JC Decaux is composed of three segments: the transport advertising, street furniture and signage. Internationally, it is the only player to perform all these activities on the market for outdoor advertising.

Diversification of the offer to customers is one of the strengths of the group and its growth in general. To meet the growingand maintaining a competitive advantage over its competitors, the group created a subsidiary, JCDecaux Innovate, responsible for the R & D group: this subsidiary has launched the first bus shelters equipped with interactive flat screen.

Throughout its development, the group sought new areas of activities to achieve critical mass and thus greater profitability. Reach a critical size also allows the group to limit the risks of an exclusive activity, and reduce the risk of takeover by foreign investors.

Tags: JC Decaux, analysis of the group, business strategy

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