Introduction

This strategy case will focus on the strategic choices of Gaz de France, French energy group, from its nationalization in 1946 to nowadays new group GDF-Suez. In order to understand the complexity of GDF-Suez structure, we have to stress on its organization. GDF-Suez is composed of 6 business units: Energy France (Supplying of gas and electricity in France, Production of electricity in France, Services to energy for individual), Energy Europe and International (Production of electricity outside France, Distribution and supplying of gas and electricity outside France), Global Gaz and LNG-Liquefied Natural Gas (Exploration and production, Provision in gas, Arbitrage LNG, Trade of energy and supplying of key accounts in Europe), Infrastructures (Infrastructures of big transportation of gas, LNG terminals in France and Benelux, Stocking activities in France and International, Gas distribution network in France), Services to energy (Control of urban networks in France and abroad, Administration of energy, industrial and tertiary installations, Complete multitechnique offers), and Environment (Water and cleaning up services, Engineering of water treatment, Clean services).

Those business units are distinguishable from each other since they serve a defined external market different for each of them; they have their own missions, objectives and business strategies, and also their own budgets.

The stages of strategy development and their characteristics

Gaz de france was born at the same time of EDF during the electricity and gas nationalization in 1946. It was formed by the grouping of all private companies which activities where either production or transportation or distribution of gas on the French territory. The first step of their strategy is to produce and sell synthetic gas (gaz de ville) stocked near consumption areas.

The second stage is distinguished with a diversification strategy since Gaz de France in 1950 began to provide a new