EADS : a cross cultural merger

Résumé du document

Since the early 1980s, mergers and acquisitions have been developing in Europe and worldwide. After the dramatic increase in the number of mergers and acquisitions in the second half of the 1980s, the 1990s leaves its mark by rapid cross-border connections and increased significant value of transactions. In 2000, the value of mergers and acquisitions reached more than 1000 billion dollars, half of which was carried out by European firms. Failure rate of mergers and acquisitions is relatively high, with around 50 % not reaching the desired objectives. The failure risks are intensified for cross-border operations where the organizational difficulties make the integration process more difficult. It is therefore, important to look more specifically at the organizational changes in mergers and acquisitions. Indeed, the comparison of the organizational structures of enterprises in different countries reveals many differences: there are centralized and decentralized, functional and matrix, formal and informal structures. We have to keep in mind that a change in organization is necessary for all mergers and acquisitions and we must consider the relationship between culture and structure.

Extraits

[...] The group Aerospatiale-Matra is managed by an Executive Board and a Supervisory Board. The group's activities are divided into four divisions: - Aerospace, - Defense - Space transportation, - Satellites, systems, services and telecommunications. In 1999, Aerospatiale-Matra has a turnover of 12.9 billion euros with a workforce of 52,387 employees. The German group DASA is the result of the consolidation of the German Dornier Messerschmitt-Bölkow-Blohm MTU München and Telefunken Systemtechnik (systems)(TST) in 1989. In 1997, the activities of Siemens Sicherungstechnik (security) are also integrated. [...]

[...] EADS : a cross cultural merger Summary Introduction Since the early 1980s, mergers and acquisitions are developing in Europe and worldwide. After the dramatic increase of the number of mergers and acquisitions in the second half of the 1980s, the 1990s leave its mark by a rapid cross-border connections and increased significant value of transactions. In 2000, the value of mergers and acquisitions reached more than 1000 billion dollars, over half of which was carried out by European firms. Failure rate of mergers and acquisitions is relatively high, with around does not reach the desired objectives. [...]

[...] In the daily management of the company, the Presidents Executives are assisted by an Executive Committee which is made by the directors of operational divisions and the heads of three major functional departments of the society. The Executive Committee consists of eleven members. The implementation of the merger has led to a reorganization of subsidiaries and divisions of the three Companies around five core businesses: - Airbus - Aerospace - Systems and Civil Defense, - Space, - Military Transport Aircraft III. [...]

[...] In 1999, DASA business amounted to 9.2 billion euros and the company employs in total 46,107 employees. Construcciones Aeronauticas (CASA) is a company owned by the Spanish State. In 1999, turnover is 1.2 billion euros and its workforce by 7430 employees. The company's activities are divided into three operating divisions: - Aircraft, - Space - Maintenance. The official announcement of the creation of EADS by the heads of the French government and German (15 October 1999 in Strasbourg, France) was preceded by lengthy negotiations between the three partners who have already been forced to work in the past in many areas. [...]

[...] In these areas, national interests play an important role. History associated companies, the strong involvement of the State and the weight of political European, national and even regional, had a strong influence on the organizational structure of EADS. These elements are clearly another dilemma, that of the competition and the cooperation between the actors involved. The idea behind the creation of a European group in aerospace was to end this competition, but it seems legitimate to to what extent it is now within the company itself. [...]