Intercultural management: European Aeronautic Defence and Space Company (EADS)

Résumé du document

During the beginning of the 90's, the European industries of aeronautics and space already cooperate in many partnerships and common programs. Soon the need for gathering seems to be essential to the concentration movements on the US market. Indeed, Northrop and Grumman merged in 1993, as well as Raytheon and BAe Business Jets in 1994 and Lockheed and Martin Marietta in 1996. The objective of the "grouping" is to impose itself on the international market to a concentrated competition. It is in this context that EADS was born, which is a merger of not two but three companies: AEROSPATIALE MATRA SA, a French company, CASA, a Spanish company, and DAIMLER CHRYSLER AEROSPACE, a German company. In spite of the apparent geographical proximity, new important challenges appear including economical, financial, social, structural and cultural aspects. In fact, risks of failure are very important and increase by the cultural differences existing during the connection of the cross border companies. That why it seems to be essential to include measures which will take in consideration the diversity in the supervisory company.

Extraits

[...] The process harmonization EADS implemented a policy of human resources, which aims at building a common culture. To harmonize the practices and procedures of HR (human resources), of the building sites were set up. On the whole people were mobilized in order to work on these building sites. For example, plan ESOP envisaged returning to shareholders the employees to federate them around the new unit. But, plan ESOP was difficult to implement taking into account financial differences between the various French, German and Spanish systems tax. [...]

[...] In 1999, the group carried out a turnover of 1.2 billion euros and counted 7430 employees. CASA combined three divisions: Planes, Space and Maintenance Daimler-Chrysler Aerospace AG Daimler-Chrysler Aerospace AG also named DASA was a German group created in 1989 and initially named Deutsche Aerospace AG. With the merger of the companies Dornier, Messerschmitt-Bölkow-Blohm MTU München and Telefunken Systemtechnik most of German aerospace industry is integrated within the DASA. In 1997, the Siemens Systemtechnik (TST) activities were integrated. The international competitiveness of DASA could be assured thanks to the national consolidation German aerospace industry. [...]

[...] The activities of the group are then divided into four divisions: Aeronautics, Defence and space transport, Satellites Services and telecommunications. In 1999, the Matra group carried out 12.9 billion euros of turnover and counted 52,387 employees Casa Founded in 1923, the company CASA (Construcciones Aeronáuticas SA) was leader of aerospace industry and defence in Spain. Before the merger, the shares of the aerospace group were held by the holding of State SEPI (Sociedad Estatal de Participaciones Industriales). It acquired a solid experiment in the field of composite materials with carbon fibres. [...]

[...] Indeed, German describes French as being arrogant and of the people seeking the capacity. The taboos are the interdicts in an organization (events, situations which should not be evoked) The cultural dimensions With regard to intercultural management at EADS, it thus will be a question of managing the risks of cultural shocks and of transforming them into opportunities. In a more theoretical way, Professor Geert Hofstede, university of Maastricht, studied the impact of the national cultures on the organizational behaviors by identifying them like “programming of collective mentality”. [...]

[...] Taking in consideration the final assignment expectations and my choose to work on this subject I decide to study on the European Aeronautic Defence and Space company (EADS) case. During the beginning of the 90's, the European industries of aeronautics and space cooperate already together in many partnerships and common programs. Soon the need for gathering seems to be essential face to the concentration movements on the US market. Indeed, Northrop and Grumman merged in 1993, as well as Raytheon and BAe Business Jets in 1994 and Lockheed and Martin Marietta in 1996 the objective of the “grouping” is to impose itself on the international market face to a concentrated competition. [...]