Governance and Control at AXA
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Case Code: BSTR224 Case Length: 18 Pages Period: 1991-2006 Pub Date: 2006 Teaching Note: Not Available |
Price: Rs.400 Organization: AXA Industry: Banking and Financial Services Countries: India, Japan Themes: Corporate Governance, Control |
Abstract Case Intro 1 Case Intro 2 Excerpts
Abstract
The case examines the dual corporate governance structure of France based AXA, one of the leading insurance and investment management companies in the world. In a span of three decades, AXA acquired several financial services companies globally. When AXA aimed at becoming a truly global company and started consolidating its global operations, the company felt that a judicious mix of centralization and decentralization of activities was required. AXA centralized its operations to the extent necessary and its subsidiaries in different countries had complete freedom to operate according to the local conditions.
The case discusses in length about the roles played by AXA's management and supervisory board to maintain a firm control over the operations of the company.
Issues
The case is structured to achieve the following teaching objectives
- Study the importance of strong governance practices in companies having global operations
- Understand the need for a dual corporate governance structure
- Examine the need for a smooth coordination between the subsidiaries and the headquarters to run a company's global operations efficiently
- Study the corporate functions that are centralized by AXA
- Appreciate the benefits reaped by AXA after decentralizing few of its corporate functions
Contents
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Introduction
Background Note
Going Global
The AXA Board
AXA - Centralizing Business Functions
AXA - Efforts to Decentralize
The Benefits
Exhibits
Keywords
AXA, Governance Structure, Globalization, Control Systems, Centralization, Decentralization, Corporate Governance, Operational Excellence, Supervisory Board, Management Board, Key Performance Indicators, Centrally Managed Functions, Localization
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