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). Remember: A case study is a puzzle to be solved, so before reading and answering the specific case study questions, develop your proposed solution by following these five steps:

  1. Read the case study to identify the key issues and underlying issues. These issues are the principles and concepts of the course module, which apply to the situation described in the case study.
  2. Record the facts from the case study which are relevant to the principles and concepts of the module. The case may have extraneous information not relevant to the current course module. Your ability to differentiate between relevant and irrelevant information is an important aspect of case analysis, as it will inform the focus of your answers.
  3. Describe in some detail the actions that would address or correct the situation.
  4. Consider how you would support your solution with examples from experience or current real-life examples or cases from textbooks.
  5. Complete this initial analysis and then read the discussion questions. Typically, you will already have the answers to the questions but with a broader consideration. At this point, you can add the details and/or analytical tools required to solve the case.

Case Study Questions:

  1. Evaluate Eni’s corporate strategy in terms of its alignment with the characteristics and requirements of its industry environment and its resources and capabilities.
  2. Looking ahead over Eni’s next four-year planning period (2019-22), what changes in Eni’s corporate strategy would you recommend?
  3. How should Eni allocate its resources across its different businesses and between different geographical areas? In particular:
  1. Should Eni continue to focus most of its capital investment on its upstream business?
  2. Should Eni divest (i) its chemicals business, and (ii) its engineering, construction, and oilfield services subsidiary (Saipem)?
  3. Should Eni continue with its vertically integrated strategy in natural gas?
  4. Should Eni invest more heavily in renewable energy sources (e.g., wind power, solar power, and geothermal power)?
  1. Evaluate the recent changes to the organizational structure that Mr. Descalzi has introduced. What further organizational and management changes would you recommend?