Rockwell Automation Best in France Case Study by Mr. Sandeep, Mr.Ravi, Ms. Font,Mr.Alias and Mr. Buet

Executive Overview The Rockwell Company –Rockwell Products –Company's clients France – Reasons for Investing Constraints in France Adaptation to France Key Constraint Costs Key Benefits Essential Advice

Rockwell Automation Came to France in 1984 –Head quarters in Bruxels for the EMEA (Europe, Middle East, Africa) countries Sales and Consulting –Industrial automation power, control and information solutions Key figures (2003) –World Sales – $4.1 Billion –Sales in France- $ 711 Million –Profit - $ 1,352 Million

Company products Leading product lines –Allen Bradley, Reliance Electric, Dodge and Rockwell software Fabrication units –Brussels,Holland and other European countries, except in France No plans for any further expansion in France

Company's clients Clients - All industries –Michelin in Europe Competitors –Schneider and Siemens Expectations –High Quality Products, –Competitive Adv - Industrial solutions France –Important market for growth about 20 years ago

France – Reasons for Investing European Market –Growth Opportunities, Product lines which could be attractive Countries Considered –Belgium, Netherlands and Germany Why France ? –Concentration of Potential clients –US market is saturated –Good sales and Technical assistance

Company values Values which were different –No of working hours - 35 hr /week –Union laws – simple and contractual in US –US companies are primarily driven by profit motive Steps taken –Tried to adopt the French values rather than changing them –Hired french employees

Constraints in France Poor economic growth –Negative Profits margins –Culture Difference Rigid labor unions Rigid social laws Less working hours as compared to US More free days than Americans Translating english documents in french

Adaptation to France Adaptations made by the company –French employees in Franc Compensation –Union is voted in the firm –Followed the French working hours –Motivation –Training to sales men in French/English –Very few expatriates

Key Constraint Costs –Hiring workforce who can speak in French –Hiring French executives to guide in the setup process –Communication constraints –Belgium and Germany scored over France in the communication aspects

Key Benefits The key benefits of being in France –One of the largest global markets –Emergence of new technologies and industry –Creative and hardworking labor force –Potential to expand business Main reason for Rockwell to invest in France

Essential Advice Should take help from ministers of foreign affairs, from chamber of commerce about fiscal advantages Should take the help of few French personnel to introduce to the French culture and habits. Depends on your objectives

We Thank Pierre de Voisins Human Resources Manger , av de l’Europe Michael Segalla Professor in HEC

Bibliography References Annual reports

Our Team Nanduri Sandeep, E013, HEC Ravi Sagar, E013, HEC Candice Font, C203, HEC Clement Buet, K38, HEC Arnaud Alias, D89, HEC