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Lucent Technologies in France
Best in France Case Study
April 2004 - July 2004
By: Ms Cheong, Mr Coulom, Mr Girma, Mr Moreno, Mr Remmele
Executive Overview
• What's your business?• Company products
and clients• Do company values fit
the French culture?
• Constraints in France• Adaptation to France• Key Constraint Costs• Key Benefit Numbers• Essential Advice
Lucent Technologies
• Acquisition of TRT (France) from Philips in 1996
• Telco equipment Supplier• World Sales 8.5 B$• European Market 500 M$
Company products
• No Production in France
• Production Outsourcing: Factory sold to Flextronics
• 2004 trend to outsource R&D
Company's clients
• “Top 50 operators”
• Local Support
• Sensitivity to technical local support: example of the DSL expertise center with France Telecom
Why it came to France
• France, Alcatel
• Germany, Siemens
• Local Confrontation in their home market with direct competitors
Company values
• Creative Force/Produce growth
• Awesome execution
• Unmatched customer value
• Winning environment/Winning Team
Constraints in France• No constraints• Existing Structure• Social habits different from the US• Adaptation for international teams lead
by non-French managers• Lower Adaptability/Flexibility, projects
moved to Germany/Netherlands
Adaptation to France
• What kinds of adaptations did/is the company making to its people management systems?– Recruitment/Selection– Compensation– Management Development– Performance Appraisal– Motivation – Job Design, Job Assignment– Communication Policies– International Transfers, Use of Expatriates– Training– etc.
Key Constraint Costs• What are the key costs to coming to
France that are more or less than operating in other locations?– Any or all HR type costs (hiring, paying,
training, dismissing, etc.)– Other organisation structure costs (real
estate, travel, taxes, "cultural consultants," etc.)
– Communication constraints (language)– Integration of French managers into
global organization
Key Benefit Numbers
• What are the key benefits of being in France?– Revenue/profit (revenue/profit per French
employee)– Location benefits (transport, time zone, quality
of life, employee satisfaction with France)– Government assistance– Market Potential (product penetration or growth
potential, customer demands for cultural adaptation of product(s), launch platform for other European countries, etc.)
Essential Advice
• What advice do you offer to other companies in this sector concerning use of France as a location?– Real International Culture– Local Partners– Hiring the right Person– Flexibility with the local legal
constraints
We Thank
• Manager 1: Virgine Robichon, HR Account Manager
• Manager 2: Marc Thivet, France Telecom General Account Manager
• Manager 3: Michel Muzy, CFO, Customer Group Central
Our Team
• Sze-Pei Cheong
• Vincent Coulom
• Eric Girma
• Christiano Moreno
• Claus Remmele