Paradigm shifts.....

A few weeks ago I posted my opinion on European Aeronautic Defence and Space (EADS) and its associated companies (including Boeing).

EADS is "the standard-bearer of the European aerospace and defence industry" an answer to America's Boeing. At some point EADS had two chairmen and two chief executives—one German and one Frenchman for each job which was an obstacle to decision making.

But according to a recent article in The Economist, this issue has now been resolved and the many political wrangles that were part and parcel of the company are now seemingly resolved.

"EADS will now have a German chairman (Rüdiger Grube, one of the co-chairmen) and a French chief executive (Louis Gallois, one of the co-CEOs). Tom Enders (a German and the other co-EADSCEO) will become sole boss of Airbus; and its COO will be a Frenchman, Fabrice Brégier, who turned Eurocopter into the world's leading commercial helicopter company. "

So it goes without say that this resolution can be accredited to Mr Sarkozy's commitment to reforming French (and European) businesses.

Now all that is left is for them, EADS, to source a cheaper cheap, adopt flexible business practices, share the risk with its suppliers and get manufactured parts at much lower costs than what is incurred presently in Europe. A move away from the nationalistic tendencies that epitomized the management style of the past will allow Airbus to become more competitive in the industry.

Globalization has changed the way business is done today, and given the fact that Tata an Indian company, could soon be launching a bid for Land Rover, once the bidding starts, the modern business paradigm has shifted and so EADS need to get with the times.