AIBUS GROUP, end of EADS
II- Aérospatiale-Matra, DASA and CASA background
III- EADS cultural experience
IV- Study about cultural perceptions and differences between three cultures V- Hofstede analysis
European Aeronautic Defense and Space company (EADS) is a European group industry present on the civil aerospace industry and military. In January 2014, EADS will be renamed AIRBUS GROUP because of the popularity of AIRBUS, well known in the world. This group was created in 2010 with the merger of DASA, Aerospatiale-Matra and CASA. Since the group's inception, French, German and Spanish are working together on many projects. To date, EADS soon AIRBUS GROUP have many subsidiaries (Airbus, Astrium, Cassidian, Eurocopter), more than 133000 employees in the world and 1033 billion profits. It’s an interesting case in the study of intercultural management because this group is the result of an important merger between different group, different nationalities and different kind of management. That the reason why in a first part I will speak about Aérospatiale-Matra, DASA and CASA background, after the EADS cultural experience. I will continue with the study of three different cultures and I will use hofstede analysis. After my recommendations and a short conclusion.
Aérospatiale-Matra, DASA and CASA background
This group is the result of an international merger between several European companies: Aérospatiale-Matra (French), DASA (German) and CASA (Spanish). Those three companies have collaborated for nearly thirty years.
- The French Group Aérospatiale-Matra was created in 1999 thanks to the merger between the public Aérospatiale Company and the private Matra Company owned by Lagardère Group. Activities were divided into four operational departments: Aeronautics; Defense and space transportation; Satellites; Systems, services and communication. - The German DASA Group comes came from the joint venture between Dornier, Messerschmitt-Bölkow-Blohm, MTU München and Telefunken Systemtechnik (TST) in 1989. In 1997, Siemens activities were also integrated. Then DASA became a subsidiary of DaimlerChrysler. Activities of the Group were divided into seven operational divisions: Airliners, Helicopters, Military Aircraft, Space infrastructure, Satellites, Civil systems and defense, Aircraft engines. - Construcciones Aeronauticas (CASA) was owned by the Spanish State. Activities of the company were divided into 3 operational divisions: Aircraft, Space and Maintenance.
EADS cultural experience
EADS is a merger between three European companies specialized in the same business area. By agreeing with this merger, EADS managers knew they had to face cultural problems. Three cultural identities were implicated: French, German and Spanish. Each culture had its beliefs, its set of values and rules, its own way of life, its language, its tradition… How to mix three distinctive cultures to build an effective intercultural management?
Negotiations about the merger involved French, German and Spanish governments. When each company agreed, EADS had a dilemma about the place of the decision power. Should it be a national centralization or a multinational decentralization? National centralization needs a central power in charge of strategic decisions while multinational decentralization allows several local powers in the framework of the functional powers. (E.g. Marketing, Human resources, Production…) This question of power involves three criteria: geographic location, the division of competencies and system of governance.
Location of the headquarters is very important because it is a key element of social interaction. Communication and collaboration between managers depends on the spatial organization of activities. Finally, they choose Amsterdam to...
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