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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

BEST IN FRANCE CASE STUDY

Macha Brazovskaia, Kathy Brustad,

Ramesh Mantha, Alfonso Ramos-Sandoval, Lionel Roux

best in france case study on aol france
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 france1
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

best in france case study on aol france2

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

best in france case study on aol france3
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

best in france case study on aol france4
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

best in france case study on aol france5
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

best in france case study on aol france6
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

best in france case study on aol france7
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

best in france case study on aol france8
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

best in france case study on aol france9
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

best in france case study on aol france10
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