BEST IN FRANCE CASE STUDY Macha Brazovskaia, Kathy Brustad, Ramesh Mantha, Alfonso Ramos-Sandoval, Lionel Roux.

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Presentation transcript:

BEST IN FRANCE CASE STUDY Macha Brazovskaia, Kathy Brustad, Ramesh Mantha, Alfonso Ramos-Sandoval, Lionel Roux

Best In France: Case Study on AOL France  Evolution of AOL France  Before and After the merger  Constraints and Benefits  Changes and Adaptations  Essential advices

Best In France: Case Study on AOL France  Internet Service Provider (ISP)  Established as Joint Venture in 1994  Three stakeholders (reducing risks)  AOL  Bertelsmann  Vivendi  AOL and Time Warner merger in 2000  Wholly owned after merger Evolution Before & AfterConstraintsBenefits ChangesAdaptationsAdvices

Best In France: Case Study on AOL France Before Land of freedom (startup like) Plenty of money Powerful brand name Entrepreneurial spirit Problem with decision making After Culture change Market became more mature US Regulations imposed US drives local operation Employees freedom curtailed Change in key policies (e.g. compensation, appraisal) Evolution Before & After ConstraintsBenefits ChangesAdaptationsAdvices

Best In France: Case Study on AOL France AOL France today  350 employees, 99% are French  Good product supported by good technology  11 Competitors  #3 in the market Evolution Before & AfterConstraintsBenefits ChangesAdaptationsAdvices

Best In France: Case Study on AOL France  Labor law  35 hour work week  Trade unions  Cultural differences  Business environment EvolutionBefore & After Constraints Benefits ChangesAdaptationsAdvices

Best In France: Case Study on AOL France  Talent pool centralized in Paris  European Market  Low cost of highly educated workforce  Productivity is high  Lots of accountability, loyalty to employer EvolutionBefore & AfterConstraints Benefits ChangesAdaptationsAdvices

Best In France: Case Study on AOL France  Change of Culture  Ethic code (SOBC: Standards of Business Conduct)  Change of Key programs/policies  Appraisal system  Compensation scheme (stock options) EvolutionBefore & AfterConstraintsBenefits Changes AdaptationsAdvices

Best In France: Case Study on AOL France EvolutionBefore & AfterConstraintsBenefitsChanges Adaptations Advices Ethic Code Appraisal system Treatment of union Badly conceived because it was very culture driven Communication with US on conflicts with French law Partial implementation of Ethic code Very different view on trade unions Explain to US the necessity of unions US agree not to push the issue Small adjustments Make the US system French Full implementation of appraisal system

Best In France: Case Study on AOL France EvolutionBefore & AfterConstraintsBenefitsChangesAdaptations Advices  BUILDING TRUST  HAVE MUTUAL RESPECT  BE FLEXIBLE  HAVE CONFIDENCE  FOCUS ON THE RESULT, BUT LEAVE THE MEANS

Best In France: Case Study on AOL France EvolutionBefore & AfterConstraintsBenefitsChangesAdaptations Advices  France is still competitive for highly qualified workers  France’s talent pool is attractive to technology companies  American company can still succeed in France

Best In France: Case Study on AOL France EvolutionBefore & AfterConstraintsBenefitsChangesAdaptations Advices Special Thanks To: Stéphane Treppoz CEO AOL France Dorothee Burkel Director of Human Resource AOL France