stig’s blog

Why?

I did chose the AREVA website for this analysis because I used to work for this company few years ago – as an intern during 4 months – and I was actually curious to analyze their website, go further and learn what feeling we (the public) have when browsing it. This company is maybe today one of the most concerned by the global social responsibilities and business ethics obviously due to its nuclear activities. That is why it was interesting to experience the visit and see what kind of information is leading. And – well alright, this is a French company: I cannot resist!

What are the main sections of the website?

Besides the interface, which really needs a new design – it looks a little bit old and messy, and the template really needs space! There is also no new web techniques implemented as Ajax that could make the website less heavy to load. So – the first impression is that the company is clearly trying to communicate about environment and environment initiatives they support. After that there is also some other “live news” about the finance situation of the company as the current quote of the CAC40, the actual investment certificate price of AREVA at the Paris Stock Exchange… But lastly there is no information of what the company actually do on this main page (they just say as a webpage title that AREVA is about “solutions for nuclear power generation and electricity transport”): we have to click on the different links located on the top of the page to learn more about it. So the message is pretty clear: AREVA wants the public to know that they are socially responsible and aware of the climate problems firstly. And they are actually actives on these issues.
Well, these are the first feelings we can have when visiting the website for the first time. Maybe they just assume that we already know the core business or they try to show a good image of what they are doing? This website is obviously intended for a large public as the company is only making business with other companies or governments: this might be why they only need to show the good side of their business.

Is the company truly global?

By visiting the section “Group” we are finally able to learn more about the company. There are actually 5 different sub sections: Profile, Corporate Governance, Sustainable Development, Communications and Foundation.
Once again on 5 sections 2 sections are about their social responsibility and the environment.
In the Profile sub section we can acknowledge that AREVA is actually a real global company despite the very French history of it: AREVA was created in 2001 by the merger of Framatome, Cogema and the CEA (Nuclear Energy Commission), 3 French entities. AREVA is not only a company working on a global market as the manufacturing facilities are made in more than 40 countries and the sales network extend up to 100 countries. The international presence balance aimed between Europe, America, Africa and Asia symbolizes the strength of AREVA as a global company. The company owns headquarters in each of these continents: AREVA is not only trying to produce, develop, process and sell energy world widely but also being a company that can understand a country (or a region) in order to achieve its goal.

The sales revenues by region is dominated by Europe, but the other regions are important as well:

And due to the sector where AREVA works (energy), this is obvious that any people on earth are a potential (indirect) client so the strategy is very clear: be competitive on each region of the world. They are currently trying to win more and more contracts in Asia and North America where many people live.

Thus AREVA is definitely a global company – not only because their clients are all around the world, but also because in order to sell energy to these people they need to produce the energy close to them. Consequently they have to built, produce, transform and transport the energy is many different countries. This is why they absolutely need to show a faultless corporate image to the world – on their website.

What images predominate?

But this is maybe the only way this kind of business can be successful: there is a need of building nuclear power plants – or ERP – and it has to be accepted by both countries and their population. Furthermore this is a known fact that nuclear is a very sensible subject and policies are very different from a country to another. Many other organizations against the nuclear energy such as Greenpeace are also very powerful and a “good” relationship between a nuclear power company and them is vital.
This is why a company such as AREVA needs to be very committed in their social engagements and has to be extremely communicative about them. It is not like any other company that realizes some good ‘spins’ in order to improve their corporate image. In this case spins cannot be enough because the core business is immediately related to the environment and social responsibilities.
If AREVA does not have community involvements the corporate image will inevitably be unlikable in the public mind and then for governments decisions. Subsequently AREVA won’t be able to get approval for nuclear power stations creation: their business will be deeply affected. They just cannot ignore it.

“Making energy available to all, protecting the planet, and acting responsibly towards future generations.”

But the major challenge AREVA is involved in is the sustainable development. They made a commitment called “AREVA way” expected to be their “keystone” of their industrial strategy. The group appears to be really concerned about the responsibilities of their leadership position carries and of the role of nuclear power and electricity networks in the planet’s energy challenges. They even made a sustainable development policy structured around 10 commitments based on 3 major “pillars”: respect for the environment, economic development and social and societal expectations.

AREVA also provides a set of reports that can be downloaded as pdf documents, especially an annual “Activity and sustainable development report” which describes the mains achievements made in this sector.

Well, this is clear that AREVA is very committed in environmental, social and ethical challenges. The website – mainly bound to a public audience even if it is not their primary client (but indirectly) – try to point up all their engagements in these specific fields and as a result try to obtain a certain kindliness. This is the only way for the company to achieve their business goals and needs.

How much is true? How much is only because this is the only way to reach their objectives? Maybe both.
If they want to convince the doubted mind like mine they might ask to independent organizations to realize some reports of their sustainable activities and post them on their website. Because all I can read on the website are their own words, and that seems too easy for me. I would like to see the real results of all of this. I am not telling they do not, but I cannot find anything relative on their website which was not written by them (Note: In 2006, Fortune reported that AREVA was the “Most Admired Global Energy Company”)

Besides all these vital commitments close to the core business, AREVA launched in 2003 a foundation. It means that they help many humanitarian projects working on childhood, healthcare, development and energy/environment. I guess this is not relevant for the analysis as this kind of foundation is a “have to” in any international company and is not any close to the core business. This is also very small compare to the commitments discussed above.

What is the company’s competitive edge in the global market?

The most competitive advantage of the company in the global market is surely that they are the world leader in nuclear power but mostly also because they are the only company to cover all industrial activities in this field. Therefore they are inevitable for many countries in the world. That is why the need to have a perfect corporate image to convince and get the contracts. The only thing they also need is a good political support: recently (November 2007) the French president Nicolas Sarkozy went in China and helped the CEO of AREVA Anne Lauvergeon to the signature of a massive 8 billion euro contract to build nuclear reactors.