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

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


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


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)



AOL France today 350 employees, 99% are French Good product supported by good

technology 11 Competitors #3 in the market



Labor law 35 hour work week Trade unions Cultural differences Business environment



Talent pool centralized in Paris European Market Low cost of highly educated workforce Productivity is high Lots of accountability, loyalty to employer



Change of Culture Ethic code (SOBC: Standards of

Business Conduct)

Change of Key programs/policies Appraisal system Compensation scheme (stock

options)




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



BUILDING TRUST HAVE MUTUAL RESPECT BE FLEXIBLE HAVE CONFIDENCE FOCUS ON THE RESULT, BUT

LEAVE THE MEANS



France is still competitive for highly qualified workers

France’s talent pool is attractive to technology companies

American company can still succeed in France



Special Thanks To:

Stéphane Treppoz

CEO

AOL France

Dorothee Burkel

Director of Human Resource

AOL France

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

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