No description available.

No description available.

<p>Today’s globalisation has opened up borders between countries as can especially be seen with the opening of the European Union. This has increased possibilities of communication and transportation, which has provided companies with greater expansion opportunities throughout the world. However, difficulties may occur when companies choose to establish abroad, for instance when French companies establish in Sweden through subsidiaries, the lack of knowledge and understanding, when it comes to the business culture, customs, and values within the host country, as well as the culture and the structure within the company, may contribute to misunderstandings and inability to work in an amalgamated manner. These barriers are a cause of unsuccessful penetration within foreign markets. In order to succeed French companies must create a well-functioning communication line between the parent company and its subsidiaries in foreign markets. The purpose of this study is to analyse and review different organisational strategies in order to establish how French companies can succeed in Sweden. The study is based on interviews with three French subsidiaries in Sweden.</p><p>The result of this study shows that the factors for successful survival for the French companies whom are setting up subsidiaries in Sweden are to; create a well-functioning two-sided communication strategy within the structure between the parent company and the subsidiary. This interaction has characterised the subsidiaries communication structure with a well-functioning internal two-sided communication between the management and the employees. Furthermore, the study shows that the cultural differences between France and Sweden have not had an impact on the subsidiary due to previous experience of internationalisation.</p><p>The conclusion of this study shows that the experience in internationalisation is vital for a company. In order to ensure a French subsidiary’s accomplish long-term survival in the Swedish market, the self-management of the subsidiary is crucial. It can also be concluded that more consideration is paid to the cultural gaps of the nations involved. When the cultural gap is substantial it can be more difficult for two countries with relatively homogenous cultures to cooperate. Heterogeneity could be an asset when a company expands into a foreign market.</p>

Today’s globalisation has opened up borders between countries as can especially be seen with the opening of the European Union. This has increased possibilities of communication and transportation, which has provided companies with greater expansion opportunities throughout the world. However, difficulties may occur when companies choose to establish abroad, for instance when French companies establish in Sweden through subsidiaries, the lack of knowledge and understanding, when it comes to the business culture, customs, and values within the host country, as well as the culture and the structure within the company, may contribute to misunderstandings and inability to work in an amalgamated manner. These barriers are a cause of unsuccessful penetration within foreign markets. In order to succeed French companies must create a well-functioning communication line between the parent company and its subsidiaries in foreign markets. The purpose of this study is to analyse and review different organisational strategies in order to establish how French companies can succeed in Sweden. The study is based on interviews with three French subsidiaries in Sweden. The result of this study shows that the factors for successful survival for the French companies whom are setting up subsidiaries in Sweden are to; create a well-functioning two-sided communication strategy within the structure between the parent company and the subsidiary. This interaction has characterised the subsidiaries communication structure with a well-functioning internal two-sided communication between the management and the employees. Furthermore, the study shows that the cultural differences between France and Sweden have not had an impact on the subsidiary due to previous experience of internationalisation. The conclusion of this study shows that the experience in internationalisation is vital for a company. In order to ensure a French subsidiary’s accomplish long-term survival in the Swedish market, the self-management of the subsidiary is crucial. It can also be concluded that more consideration is paid to the cultural gaps of the nations involved. When the cultural gap is substantial it can be more difficult for two countries with relatively homogenous cultures to cooperate. Heterogeneity could be an asset when a company expands into a foreign market.

The gas leak disaster in Bhopal, India, in 1984 illustrates a situation of catastrophe and mass torts resulting in loss of life and health as well as environmental degradation. The Indian company Union Carbide India Limited, who owned and operated the chemical plant that caused the disaster, did not have sufficient assets to compensate the victims in contrast to its financially well-equipped US parent company Union Carbide Corporation. The courts never reached a decision regarding parent company liability for the subsidiary’s debts arising from tort claims against the subsidiary. However, where the subsidiary cannot satisfy its tort creditors, as in the Bhopal case, questions regarding parent company liability become highly relevant in relation to both foreign and domestic subsidiaries. Therefore, parent company liability for subsidiaries’ torts is discussed in this thesis with reference to Swedish and UK company law and with a focus on the tort creditors’ situation and the business and human rights debate. From limited liability for shareholders and each company being a separate legal entity follows that a parent company is not liable for its subsidiaries’ debts in neither Swedish nor UK company law. These concepts serve the important function of facilitating risk-taking and entrepreneurial activities. However, they also contribute to the problem of uncompensated tort victims arising where a subsidiary is involved in liability- producing activities but lacks assets to compensate the tort victims. Where limited liability and each company being a separate legal entity leads to particularly inappropriate results, the doctrine of piercing the corporate veil in both Sweden and the UK allows the court to disregard the separate legal personalities and hold the parent company liable for its subsidiary’s acts or omissions. The doctrine is characterised by uncertainty and is seemingly only available under exceptional circumstances. The doctrine does little to mitigate the problems for subsidiaries’ tort creditors at large. The business and human rights debate calls for access to judicial remedies for victims of businesses’ human rights violations. As some human rights violations can form the basis of a tort claim, it is relevant to discuss parent company liability according to company law in relation to human rights violations. The United Nations Guiding Principles on Business and Human Rights emphasise the need to ensure that corporate law does not prevent access to judicial remedies. However, the company law regulation of liability in company groups seems in practice to function as an obstacle for access to judicial remedies for human rights victims, particularly when also considering the inadequate legal regimes in some host states and the hurdles of jurisdiction and applicable law in multinational company groups. It is concluded in this thesis that the company law regulation of liability in company groups is seemingly not equipped to meet the challenges arising with the development of company groups, the global reach of the private business sector, the risks of mass torts and the influence of the business sector on human rights.