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BEST IN FRANCE CASE STUDY

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.

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BEST IN FRANCE CASE STUDY

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

  2. 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

  3. 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 & After Constraints Benefits Changes Adaptations Advices

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

  5. 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 & After Constraints Benefits Changes Adaptations Advices

  6. Best In France: Case Study on AOL France • Labor law • 35 hour work week • Trade unions • Cultural differences • Business environment Evolution Before & After Constraints Benefits Changes Adaptations Advices

  7. 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 Evolution Before & After Constraints Benefits Changes Adaptations Advices

  8. 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) Evolution Before & After Constraints Benefits Changes Adaptations Advices

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

  10. Best In France: Case Study on AOL France • BUILDING TRUST • HAVE MUTUAL RESPECT • BE FLEXIBLE • HAVE CONFIDENCE • FOCUS ON THE RESULT, BUT LEAVE THE MEANS Evolution Before & After Constraints Benefits Changes Adaptations Advices

  11. Best In France: Case Study on AOL France • France is still competitive for highly qualified workers • France’s talent pool is attractive to technology companies • American company can still succeed in France Evolution Before & After Constraints Benefits Changes Adaptations Advices

  12. Best In France: Case Study on AOL France Special Thanks To: Stéphane Treppoz CEO AOL France Dorothee Burkel Director of Human Resource AOL France Evolution Before & After Constraints Benefits Changes Adaptations Advices

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