Magdalene Telecom
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Transcript Magdalene Telecom
Magdalene Telecom – in France
Best in France Case Study
Jan. 2004 - May 2004
Vaughan Chandler
Michel Le Bars
Atsushi Masai
Boris Polivka
Kurt Weber
Contents
1 Executive Overview
2 Magdalene Telecom
3 Starting a business in France
4 Constraints & Benefits
5 Essential Advice
1
Why did we choose Magdalene?
Nicolas Grante
Entrepreneur experiences in Netherlands, UK, Poland
Owns several individual companies in France
Has worked in Denmark, Eastern Europe, Switzerland,
Nigeria…
Start-up
Initiated in December 2003
Provides a different perspective on HR issues from the
established corporate perspective
2
Executive Overview
Magdalene Telecom is a British company that provides
outsourced technical support to telecommunication providers
Reasons for locating in France:
To address the opportunity of a large tender
To support France and French speaking markets
It was easy to replicate from the UK business model
There are no significant benefits of being located in France,
besides access to the market
There are many small issues about being located in France –
none of which are ‘showstoppers’
3
Introduction to Magdalene Telecom
It’s Our People That Make The Difference
4
Company Overview – Magdalene Telecom
Established in UK in 1996 to provide high quality infrastructure
support to telecommunications providers
Focussed on products seen as ‘non-core’ by Telco providers
(e.g. GSM networks)
Opened office in France in 2003 – A start-up
Over 210 employees Globally
10 Employees in France
5 on secondment from the British office
1 for sales & Marketing, 9 service engineers
Heavy reliance on Nokia (currently 70% of business)
5
Activities & Structure
Nokia TETRA
VAR
GSM 2.5 / 3G
Nokia Mobile
Phones
Reseller
Cellular
Support
Services
Nokia Care
Partner
Marconi Care
Partner
Network
Management
Systems
Active
Subsidiaries
Netherlands
Africa
France
Italy
Finland
6
Current Clients Base
Key Product
Suppliers:
Nokia
Marconi
Harris
Lucent
Nortel
TS Comms
Savox
Aircom
Operators:
Private Networks:
Orange UK
Orange France
T-Mobile
C&W
Global Crossing
H3G
Moratel, Morocco
NEOS
O2
Opal
Your Comms
Cegetel
Band X
O2 Airwave
Anadarko, Algeria
BBC
Dolphin France
Highways Agency
Irish Rail
Network Rail
Scottish Ambulance
WS Atkins
Sussex Police
Cheshire Police
7
Turnover worldwide
18
16
Turnover MGBP
14
12
10
8
6
4
2
0
96/97
97/98
98/99
99/00
00/01
Financial Years
01/02
02/03
Est.
minimum
03/04
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Why Magdalene came to France
Magdalene’s first purpose was following a large tender in the French market
This tender was not successful
The French market was also a desirable target market
Large enough to support a full office
Provides access to other French speaking markets:
–
Belgium
–
Switzerland
–
Northern Africa
The market allowed the best duplication of the UK business model
The other large market, Germany, operated in a different manner
This would have meant significant changes to Magdalene’s business model
9
Benefits of being located in France
Access to a large and developed market
Better access and service to French speaking markets (Europe and North
Africa)
Relevant education for desired workforce
Provides a European identity
European mobility
Others???
10
Constraints in France
In establishing small-business in France
Rules and regulation
Not transparent
Can be incorporated in 2-3 days at a bare minimum
Must advertise creation of company – perceived as useless and a waste of money
Process & procedures
Guidebook (became available recently)
Has improved process, but there is still a way to go
Public administration
Public administration will not adopt a business related focus
Dealing with public sectors for licenses
Many small and convoluted taxes mean it is difficult to generate accurate forecasts
Establishing Office space Expenses
Required upfront payment of 1 year
Key Takeout: France is not conducive to setting up a new business
11
Constraints in France
In operating small-business in France
Employment contract
35 hour work week
– Manageable, but does result in some loss of competitive advantages
Public administration
Public administration will not adopt a business related focus
Dealing with public sectors for licenses
Many small and convoluted taxes mean it is difficult to generate accurate forecasts
Key Takeout: France does not provide a competitive edge
12
Differences in employment
French prefer salaried approach, even with significantly lower salary
e.g. Annual Salary of 36,000 Euro chosen over 350 Euro per day on a contract
basis
Termination of contract requires 1 month notice
The UK encourages a “mercenary approach”
40-50 self-employed in the UK (on contracts)
Encourages a “mercenary approach”
Profit Sharing by all employees: 20% of total Global profit
Training
5000 Euro per person
2 week Training program in UK for new employees
“No competition clause”: exist, but they are difficult to enforce
13
Adaptation to France
The main adaptations from the UK model were all caused by the fact that UK was
established and France was a start-up
Recruitment needing to understand utilisation restraints and a short pipeline of sold work
Recruitment was set at market rates
UK staff remain on the UK package for 6 months
Recruitment of contractors is done through a third party rather than direct
Moves contractual obligations in France one layer further away
Little change was perceived in other areas including
Management Development
Workforce Planning
Performance Appraisal
Motivation
Job Design, Job Assignment
Communication Policies
Training
14
Essential Advice
What advice do you offer to other companies in this sector concerning use of
France as a location?
Before coming to France
Find a great accountant
Adaptation while in France
Get to know your great accountant
Future investments in Europe
Creating a subsidiary is a big investment (than one could expect.)
Things are improving, but are still not transparent
15
We Thank
Mr. Nicolas Grante:
Directeur Ventes et Operations/Head of Sales and Operation
16
Our Team
Vaughan Chandler:
[email protected]
Michel Le Bars
[email protected]
Atsushi (Andy) Masai
[email protected]
Boris Polivka
[email protected]
Kurt Weber
[email protected]
17