1. Strategy Final Paper
MBA 580
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2. Company Background
Revenues
 Schneider Electric is a 177 year old multinational company with annual
revenue of 24 billion Euros.
People
Schneider Electric’s has offices worldwide with more than 140,000
employees
CoreBusiness
Schneider Electric’s core business units are Power, Infrastructure,
Industry, IT, and Buildings
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3. Company History
Roots
 Schneider Electric started in the iron and steel industry, heavy machinery,
and shipbuilding.
Transition
 The company gradually moved into electricity and automation
management.
Since 1836 to today, Schneider Electric has transformed itself into the
global specialist in energy management.
Company Mission
After 170 years of history, Schneider Electric has become today the
solution provider that will help you make the most of your energy”.
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4. Energy Dilemma
What the International Energy Agency says…
 With good energy efficiency programs implemented between 2012 and
2035, the need for 230 gigawatts of energy from coal-fired power plants and
another 120 gigawatts from gas-fired plants will be eliminated.
The world in 2030
 8 billion inhabitants, 60% will live in cities
 2 billion will join the middle class
 Demand for electricity will be 76% higher than in 2007
 China and India alone will represent over 50% of incremental energy
demand
 1.3 billion people will not have access to electricity, mostly in Africa and
India
 Electric vehicles will represent 60% of world share in passenger vehicle
sales
 Renewable energies will have a 22% share in the global energy mix
(Sources Robert Garner - Trends compendium -2008, World Energy Outlook 2009 - AIE / OCDE)
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5. Current Strategy
Global Outreach
 The company strives to be the ‘global specialist in energy management’.
 Presence of the company’s products is currently not in every corner of the
world.
Growing Economies
 Targeting growing economies such as Brazil, Russia, India and China
(BRIC)
 Deliver electricity to communities that have no or low access to power
Securing Raw Material
 Increasing operations in countries that mine metals such as gold,
platinum, copper, nickel etc.
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6. Current Strategy
Power Reliability
 Investment in Smart Grid technologies by making components enhancing
power reliability
EnergySolutions
 Providing solutions to customers to improve their energy efficiency
 such as Ford saving up to 30% on energy consumption based on
Schneider Electric products and services
Acquisitions
 Ongoing acquisitions of different services and products that complete the
company’s energy solutions packages
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7. Challenges
Competition
 Highly competitive market with ABB, Honeywell, GE, Johnston Controls,
Eaton, Rockwell Automation, and Siemens all having cutting edge
DiverseOperations
 With so many recent acquisitions, Schneider Electric needs to consolidate
its companies
EnergyDilemma
 Schneider Electric is operating constantly in a highly challenging
environment with growing energy demand
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8. Strategy Recommendations
SwitchtoMatrix Structure
 Currently, the company is at life cycle stage of elaboration that matches
with the structure proposed (Matrix) and responses to the challenges and
threats of current times.
 A matrix structure will allow the integration of different regions of the world
more efficiently with each key department of the organization.
Dual Mechanistic and Organic Structure
By introducing more horizontal structures, the company will encourage
decentralization of power, and consequently decision making is delegated to
middle and lower level managers.
 With a dual mechanistic and organic type structural strategies, the
company can deal better with structural changes in a smoother fashion.
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9. Strategy Recommendations
Drive Regulations
Schneider Electric should participate in driving policy in Washington DC so
that the market is regulated by greenhouse gas reduction mandates.
Schneider Electric will get opportunities to sell more of its services and
solutions.
Penetrate the India and China market
 The company is currently not penetrating into this growing economic
sector as much as the market in this region is growing.
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10. 2013 Schneider Electric Organization Chart
President & CEO
Jean-Pascal Tricoire
Global functions Supply chain Businesses Operations
Global Smart
Finance, Control, Supply Infrastructure Global
Legal affairs Chain Operations
Emmanuel Babeau Cities Energy
Business Julio Rodriguez
Annette Clayton End
User Professional
Human Laurent Services
Resources Business Vernerey
Karen Ferguson Group Buildings
Laurent
Vernerey Industry Business
Information, Process
Clemens Blum
&Organisation
Herve Coureil IT Business
Daniel Doimo
North America
Strategy Operations
Partner Partner Projects
Michel Crochon Business Chris Curtis
Retail
Philippe
Delorme EcoBusiness China
Global Marketing Operations
Aaron Davis CST
Eric Pilaud Zhu Hai
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