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Managing in Troubled Times Case Study
Case Title:
EADS: The Boardroom Battle at Europe's Aerospace Giant
Publication Year : 2005
Authors: Rupesh Kumar Madhogaria, Sumit Kumar Chaudhuri
Industry: Commercial Aircraft Manufacturing
Region: Europe
Case Code: TRT0063
Teaching Note: Not Available
Structured Assignment: Not Available
OR
Abstract:
European Aeronautic Defence and Space Company NV (EADS), Europe's largest and the world's second largest aerospace firm, has plans to venture into the US defence industry, which is dominated by US companies. Despite doing well on the business front, EADS is mired in a boardroom battle, which stems from its unique organisational structure. With the German and French shareholders failing to come to a consensus on the future management structure of EADS, many strategic decisions of the company have been put on hold.
Pedagogical Objectives:
- To highlight the power struggle within the EADS board
- To discuss how conflicting national interests in a company with dual command, might hamper its business prospects.
Keywords : Global aerospace and defence business; Global commercial aircraft manufacturers; Strategic partnerships in the defence industry; European aerospace and defence manufacturers; Managing in Troubled Times Case Study; Ownership structure of European Aeronautic Defence and Space Company NV (EADS); Relationships between principal shareholders of EADS; Voting rights at EADS board; Conflicting national interests at EADS board; Future business plans of EADS; Transnational ownerships and mergers; State ownership in European defence manufacturers; Multinational ownership and leadership struggles; Franco-German alliance in aerospace and defence manufacturing; Dual-command structure at EADS
