Intercultural management is born from the process of expansion of business areas, or globalization. To expand business activities, companies can not only develop their industry on their own market, they also have to make strategic choices like joint venture, merger, acquisitions, alliances, and outsourcing in other countries. Nevertheless those choices are not easy to implement, companies that try to internationalize their activities have to face management issues, especially because of cultural differences. I have chosen to study the case of EADS because the merger involves three European companies. Even if the three companies are part of Europe, there are a lot of criteria to take into account. Through this document, we will analyze the organizational and managerial changes that occur during the merger of several culturally different companies. First we will take a look at the background of EADS, and then we will explain its cultural experience. We will also have an overview of main issues concerning the EADS merger. Afterwards we will make a statement of cultural differences between France, Germany and Spain and analyze them through the study of cultural differences and perception realized by EADS experts and Hofstede parameters. To conclude, we will try to make pertinent recommendations.
[...] Trainings were constantly adapted to EADS Group strategy. To follow progress of employees, people attending a training session were assessed. Their results were compared to their performance before entering the program. Recruitment New employees were hired: 1500 in 2001; between and each year since 2002. Employees came from everywhere in the world. Recruitment aims to renew the workforce but also to facilitate the creation of a new corporate culture. Workforce and its nationality At the end of 2004, EADS had employees. [...]
[...] We will next have an overview of main issues concerning the EADS merger. Afterwards we will make a statement of cultural differences between France, Germany and Spain and analyze them through the study of cultural differences perception realized by EADS experts² and Hofstede parameters. To conclude, we will try to make pertinent recommendations. Company's background EADS (European Aeronautic Defense and Space Company) is the result of an international merger between several European companies: Aérospatiale- Matra (French), DASA (German) and CASA (Spanish). [...]
[...] Each division is managed by only one leader to avoid misunderstanding. For keeping balance between all the countries and all the competencies, staff organization has been completely changed. To motivate its employees, EADS Group has improved work conditions by organizing training seminars, giving bonus to employees who had to move for their job. By observing the flowchart, it seems like officers are close at work but it is not true. CEOs, Executive committee and officers are spread everywhere, mainly in their firm of origin. [...]
[...] La métamorphose des organisations. L'Harmattan. Study about cultural differences perception at EADS realized by Michel Barabel (IRG/ Dever Research), Hervé Borensztejn (EADS Senior Vice- president/ Head Corporate Business Academy), Nancy Groesh (EADS), Gael Le Boulch (CREPA/ DISTEC) and Olivier Meier (IRG/ Dever Research). [iii] From Internet Web site http://www.geert- hofstede.com/hofstede_germany.shtml; http://www.geert-hofstede.com/hofstede_france.shtml; http://www.geert-hofstede.com/hofstede_spain.shtml . [...]
[...] They emphasize relationship management to achieve their objectives and build team spirit. Thirdly, the French are also characterized by using informal communication. This is contradictory to the first point mentioned, but it seems they also act informally. Then, we can note the French are committed to nationalism and politics. They are proud of them and trust French people before others. All of these criteria lead them to be perceived quite negatively. For foreigners, the French people are vague, too political, and arrogant. [...]
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