AOL 2004 - HEC Paris
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Transcript AOL 2004 - HEC Paris
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 & After
Constraints
Benefits
Changes
Adaptations
Advices
Best In France:
Case Study on AOL France
Before
After
• Land of freedom (startup like)
• Culture change
• Plenty of money
• Market became more mature
• Powerful brand name
• US Regulations imposed
• Entrepreneurial spirit
• US drives local operation
• Problem with decision making
• Employees freedom curtailed
• Change in key policies (e.g.
compensation, appraisal)
Evolution
Before & After
Constraints
Benefits
Changes
Adaptations
Advices
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 France
Labor law
35 hour work week
Trade unions
Cultural differences
Business environment
Evolution
Before & After
Constraints
Benefits
Changes
Adaptations
Advices
Best In France:
Evolution
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
Before & After
Constraints
Benefits
Changes
Adaptations
Advices
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:
Ethic Code
Case Study on AOL France
• 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 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 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 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