AT

1
ATT

• Best in France Case Study
• December 2003

2
Business in France

• Companies having business in France have to make
  trade-offs between the attractivity of the
  country and some specific constraints.
• Since several months, the French government has
  launched some reflexions about attractivity of
  France which have come to the Rapport Huyghe
  released in November.
• But attractivity is not only a matter of tax
  rates.
• We have decided to ask a global American player
  in the sector of telecommunications to tell us
  about its view of business in France.

3
Group ATT

• ATT is expanding global reach, enhancing
  reliability, increasing network performance, and
  improving management tools to support critical
  enterprise communications with customers,
  suppliers, channel partners and employees.
• Main service Interconnect clients locations
  around the world regarding voice, data and video
  providing high performance and good prices
• ATT aims to be the leading provider of managed
  data and communications services.
• ATT is structured as a European wide company

4
Group ATT

• ATT provides data services in over 140
  countries, 38 within Europe, Middle East and Asia
  (EMEA).
• Employees 57,000 employees worldwide
• EMEA Over 3000 professionals
• Clients 4 million customers worldwide
• EMEA Over 15,000 clients
• Worldwide revenue 52 billions
• Number 15 in Fortune 100
• Third Quarter 2003 Earnings (Oct 23rd 2003)
• Third quarter earnings per diluted share from
  continuing operations of 0.58
• Consolidated revenue of 8.6 billion
• Operating income of 829 million

5
Why ATT is in France

• France is a key target location due to the
  industry of telecommunications Need to be where
  the customer is.
• The main objectives in France are
• o     Deliver business services for corporate
  customers
• o     Interconnect all locations around the world
• o  Be present in every place where a customer
  
• relationship must be built

6
ATT in France

• Turnover
• Europe represents around Euro 700 million per
  year
• France represents Euro 150 million per year
• France is one of the key markets in Europe, along
  with the United Kingdom and Germany (sizes of
  markets).
• European Headquarters are located in Paris for
  historical reasons. ATT arrived in France around
  20 years ago and chose Paris due to a historical
  relationship with IBM (IBM had its European
  headquarters located in Paris)
• La Defense is an attractive place to be due to
  business clustering for French and international
  companies (eg AXA, Societe Generale, and many
  international banks and consultancies such as
  Ernst Young.)
• In France, ATT has two main competitors Equant
  (group France Telecom) and Infonet.

7
Company values

• ATT France employs 300 persons, 99 of them are
  French
• ATT France adopted the American corporate values
  with no difficulties
• Dedication to customers
• Team Work
• Respect for individuals
• Innovation

8
HR Policy and management of expatriates

• ATT hires only French people since they feel
  that it is necessary to have French staff due to
  
• Cultural reasons It is something that French
  customers expect (language and culture).
• Organizational reasons there are local teams to
  develop functions such as Sales, MKT, etc
• Due to this policy of being local, the company
  does not move expatriates around the world. If
  the company needs to hire persons with skills
  that only can be gotten in the UK for example,
  the France office asks to UK office to hire them
  and after that they transfer the employees to
  Paris.
•  
• One international policy is not to have an
  American person as Country Manager

9
Adaptation of Products

• ATT provides services to global companies, as
  such their products need to be compatible
  globally.
• Their clients in France are global companies and
  demand the same products and level of service.
• As such ATT does not adapt their product to each
  specific market.
• Customers Expectations interconnect their
  locations around the world with high performance
  services (voice, data and video) and good prices.

10
Adaptation to France

• Due to its historical position in France ATT has
  not needed to make any major changes to business
  practices.
• The values of the company were applied without
  any major disruption to the French culture.
• Each country has its own constraints and the ones
  of France (taxes, social policy...) did not
  prevent the company from conducting its business
  correctly.
• The implementation of the 35 hours week has been
  quite smooth.

11
Adaptation to 35 hour week

• The change to the 35-hour week required a HR
  Manager to focus on its implementation but
  otherwise had no major effect.
• As ATT in France has no manufacturing
  activities, the implementation of the 35 hours
  did not cause any major disruptions.
• As a service company it was possible for ATT to
  implement the 35 hour week through the
  negotiation of holidays.
• Due to the two situations above ATT did not
  consider delocalising any of its activities due
  to the 35 hour week.

12
Company's clients

•         The company established its European HQ
  in Paris because it was strongly linked to IBM at
  that time
• The companys clients are Corporate Customers
• ATT must be present where the customer is, i.e.
  French customers want to deal with a French
  interface and not with a central office in New
  Jersey.
• ATT, as a service company, believes that
  cultural match is important for clients and as
  such provides local sales and support.
• An example of a French client is Lafarge with
  whom ATT has developed a long term partnership.

13
Key Benefits for the Company

• Paris and France have a skilled workforce well
  suited to the industry.
• There is a good infrastructure in France and
  especially Paris with consideration to Transport
  and Technology.
• As previously mentioned proximity to clients in
  La Defense is a benefit.
• Cultural fit with clients and employees allows
  for the development of long term relationships
  like with Lafarge.

14
Location attraction for Employees

• Paris and its facilities provide a good
  infrastructure
• Paris just as Paris is an attractive draw for
  expatriates and specialists who need to be posted
  for periods.
• As most employees are French therefore Paris
  provides a good cultural fit.

15
In Conclusion

• ATT located to Paris due to a historical
  relationship with IBM
• It has kept its European Headquarters in Paris as
  France is one of its 3 major European markets
• Due to the clustering in Paris and La Defense,
  Paris continues to be an attractive location.
• The labor is educated and skilled
• Have no problems with regulations
• Work with global companies and have established
  relationships in France with Global French
  companies.
• French and specifically Parisian life style is
  seen as one of the biggest selling points

16
We Thank

• Mr Tam Pham, Business Marketing Director
• ATT Business EMEA
• 1 place Jean Baptiste Clement
• 93881 Noisy le Grand
• tpham_at_emea.att.com, 33(0) 49 31 57 73

17
Our Team

• Brachet, Stanislas
• Davies, Wynn
• Diaz Clarke, Karla
• López Iervasi, Fernando J.