EADS insider trading affair : Economic intelligence

Résumé du document

Nowadays, the globalization is in expansion and the competition is aggravated. In its economical war, the major stake is the information which became the key success factor for many companies. Indeed the information allows watching the firm's environment as well as the following of the concurrent behavior and strategies. It permits to forecast the market evolution as well as the development of new technologies.

A perfect know-how of its environment permits to a firm to anticipate and evaluate the threats on its market. Consequently the management can take more efficient decision contributing to their activities development. In brief, today the information became major to stay competitive and it's became the main factor of a firm's success.

Moreover as the environment is evolving a firm has to collect information continually. Consequently there are different ways to collect it such as through the economic intelligence process defined like the control and the protection of the relevant strategic information for every economic actor. It has for purpose the economy's competitiveness and the companies' security. It represents a multidisciplinary process: analyze the information suppose to combine technical, economics, commercials and financials competencies.

The protection of data or sensitive sites appealed to multiple specialties. That's why the implementation of a specific organization, in particular within the company, is necessary, as well as the appeal to all the useful resources, in particular those whom the administration gives available to all.

Extraits

[...] Through this power8 plan EADS has taken the choice to relaunch the activity by making a heavy human resources management within its group. Consequently, this strategy feeded «the anger of the employees of Airbus» who notice that they have staff which restructures short of thousand job losses» and who grants itself in secret of comfortable capital gains”. They had tried to solve the crisis by protecting the capital of the firm without taking care of the staff. This management had a negative impact on the brand image and contributed to destroy the trust of public opinion and damage relationship with customers. [...]

[...] A communication, even advertising, more than an information, answering short-term priorities, where the net profit can be expressed by 60 different manners, without elements of comparison and without interactions, unidirectional and not appealing to independent sources. This crisis communication plan impact Year 2010 was one year of sensitive progress for the company, with orders very superior to the forecasts, the record deliveries of Airbus, the regulation of the dispute on A400M and the progress were realized on A380. The plan Power 8 allowed Airbus to remain competitive with a dollar in euro. Other divisions make the same efforts. [...]

[...] In this case according to the bad executive responses we can judge about the intensity level of the crisis. Accuracy of the EADS crisis management: The financial communication of the group being questioned, what information others than the industrial setbacks, can be the object of a confidentiality without defect during months, was able to sharpen the sensibility of the market? The publication of the profits of the group in March 8th created an increase of the long-term debts from 5 to 25 billion euro between 2004 and 2005. [...]

[...] Yet the entire accused person denied their implication in this insider trading affair. In this second part, we are going to describe and analyze the crisis communication plan, intent and impact, set up by EADS to overcome this crisis. Human resources management: Power8 plan In order to face this crisis which has roughly touched EADS activities in terms of money and reputation, they launched the plan Power 8 that they wanted to launch before the crisis. The main objective of Power8 consisted in returning more effective and more competitive Airbus, so as to offer the most advanced and the most profitable products to serve better its customers in the future. [...]

[...] It has for purpose the economy's competitiveness and the companies' security. It represents a multidisciplinary process: analyze the information suppose to combine technical, economics, commercials and financials competencies. The protection of data or sensitive sites appealed to multiple specialties. That's why the implementation of a specific organization, in particular within the company, is necessary, as well as the appeal to all the useful resources, in particular those whom the administration gives available to all. The useful information is essentially "opened": of the strategic data are accessible on Internet, in the press or in specialized publications. [...]