©2016 INSEAD Case Study
Get the case from INSEAD Case Publishing
The case describes the boardroom discussion at the time of the IT bubble in the early 2000s, when all major telecoms (British Telecom, Deutsche Telecom and France Telecom) had problems. BT is the first to react and decides on a major asset sale - including its mobile division - to restore the balance sheet (in view of much depreciated assets after the bubble burst). The case presents the very different tack taken by the management and board of France Telecom, inviting discussion as to why two companies facing similar conditions reach radically different decisions. This then involves discussion of the influence of stakeholders in governance and how they contribute to outcomes.