Management of Innovation and Vertical Integration -Strategy
Scope of the Modern Company (100 points)
In this module, we looked at technology-based industries and the management of innovation. For this week’s assignment, review Case 12: Tesla: Eni SpA: The Corporate Strategy of an International Energy Major, p. 503 (in your textbook).
Case Study Questions:
Evaluate Eni’s corporate strategy in terms of its alignment with the characteristics and requirements of its industry environment and its resources and capabilities.
Looking ahead over Eni’s next four-year planning period (2019-22), what changes in Eni’s corporate strategy would you recommend?
How should Eni allocate its resources across its different businesses and between different geographical areas? In particular:
Should Eni continue to focus most of its capital investment on its upstream business?
Should Eni divest (i) its chemicals business, and (ii) its engineering, construction, and oilfield services subsidiary (Saipem)?
Should Eni continue with its vertically integrated strategy in natural gas?
Should Eni invest more heavily in renewable energy sources (e.g., wind power, solar power, and geothermal power)?
Evaluate the recent changes to the organizational structure that Mr. Descalzi has introduced. What further organizational and management changes would you recommend?
