Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • December 2020 (Revised June 2021)
  • Case
  • HBS Case Collection

France Télécom (A): A Challenging Restructuring

By: Cynthia A. Montgomery and Ashley V. Whillans
  • Format:Print
  • | Language:English
  • | Pages:29
ShareBar

Abstract

These cases explore the impacts of industry shocks, resulting corporate actions that had a devastating impact on employees, and the legal conviction of corporate leaders for “institutional harassment."

This case series follows the evolution of France Telecom from a national telephone monopoly to a private company facing two severe challenges: (1) The company’s competitive advantage as a land-line carrier is being challenged by mobile carriers and the entry of new competition from other countries; and (2) the workforce is much larger than required by the company’s new strategy, yet many employees are civil servants, making it very difficult to reduce headcount, despite many attempts to do so. As increasing pressure is mounted internally, the culture shifts from one where employees are proud to work to one described as “tense, even violent” and the physical and mental wellbeing of some employees becomes increasingly “fragile.” The further impact of these developments is outlined in the (B) and (C) cases.

The (A) case describes the development of the situation, the competitive challenges that prompted it, key decisions made by corporate leaders, and the impact of the same on various stakeholders. The discussion begins by asking students to apportion responsibility –how much is due to labor laws, to industry change; to past management; to current management; to the employees themselves? Have corporate leaders pushed employees too far, creating unacceptable levels of stress and unhappiness? What levers do leaders have to keep a business relevant and to do so in a way that is fair to all stakeholders? At its most fundamental, the case series helps students confront some fundamental tensions between the pressures and benefits of capitalism, the responsibilities of management, and the day-to-day and long-term impacts on employee well-being.

Keywords

Health & Wellness; Human Resource Management; Strategic Change; Leadership & Corporate Accountability; Leadership And Change Management; Leadership And Managing People; Change; Restructuring; Crime and Corruption; Ethics; Health; Human Capital; Human Resources; Labor; Labor and Management Relations; Labor Unions; Law; Social Psychology; Strategy; Leadership; Leadership Style; Organizations; Problems and Challenges; Relationships; Crisis Management; Organizational Culture; Employees; Well-being; Telecommunications Industry; Europe; European Union

Citation

Montgomery, Cynthia A., and Ashley V. Whillans. "France Télécom (A): A Challenging Restructuring." Harvard Business School Case 721-420, December 2020. (Revised June 2021.)
  • Educators
  • Purchase

About The Authors

Cynthia A. Montgomery

Strategy
→More Publications

Ashley V. Whillans

Negotiation, Organizations & Markets
→More Publications

Related Work

    • December 2020
    • Faculty Research

    France Télécom (B): A Wave of Staff Suicides

    By: Cynthia A. Montgomery and Ashley V. Whillans
    • December 2020
    • Faculty Research

    France Télécom (C): An Unprecedented Trial

    By: Cynthia A. Montgomery and Ashley V. Whillans
    • December 2020 (Revised June 2021)
    • Faculty Research

    France Télécom (A): A Challenging Restructuring

    By: Cynthia A. Montgomery and Ashley V. Whillans
    • March 2022 (Revised April 2022)
    • Faculty Research

    France Télécom (A), (B), and (C)

    By: Ashley Whillans
Related Work
  • France Télécom (B): A Wave of Staff Suicides By: Cynthia A. Montgomery and Ashley V. Whillans
  • France Télécom (C): An Unprecedented Trial By: Cynthia A. Montgomery and Ashley V. Whillans
  • France Télécom (A): A Challenging Restructuring By: Cynthia A. Montgomery and Ashley V. Whillans
  • France Télécom (A), (B), and (C) By: Ashley Whillans
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College