France finds itself at a difficult crossroads as the cold economic climate post-2008 challenges the viability of the country's traditional social models.  With unemployement running around the 10% mark and many people calling for even further pro-market reforms, the modernisers find themselves at odds with tradional vested interests - and these vested interests have been historically highly influencing in shaping both internal policy and approach to business. It could be said that two particular elements play a greater role in approach to business in France than in any other industrialised economy (other than possibly Japan). These two essential ingredients are the role of the government and the importance of a certain type of education. The French government has played a central and vital role in the shaping and direction of French companies ever since the end of the Second World War. Indeed the government, even in the late eighties, was actively fostering the development of a number of 'national champion' companies which would be large enough to face up to global competition. One of the interesting aspects of these interventionist policies is that they have been largely accepted by mainstream business, which has worked hand in hand with senior civil servants in the ministries. This level of co-operation between the government and industry has been aided by the influence of the French education system, which pushes the brightest pupils through a system of elite schools known as the Grandes Ecoles. Graduates of the Grandes Ecoles tend to enter either large commercial organisations or the civil service and this educational brotherhood has created an affinity of thinking across the senior echelons of French business society. It has even been said that the best way to become a PDG (CEO) of a major French company is through a senior position in an important ministry. France remains the 5th largest economy in the world and boasts world leading organisations in banking and finance, aeronautics and many hi-tech fields. .

1. France finds itself at a difficult crossroads as the cold economic
climate post-2008 challenges the viability of the
country's traditional social models. With unemployement
running around the 10% mark and many people calling for even
further pro-market reforms, the modernisers find themselves at
odds with tradional vested interests - and these vested interests
have been historically highly influencing in shaping both
internal policy and approach to business.
It could be said that two particular elements play a greater role
in approach to business in France than in any other
industrialised economy (other than possibly Japan). These two
essential ingredients are the role of the government and the
importance of a certain type of education.
The French government has played a central and vital role in the
shaping and direction of French companies ever since the end of
the Second World War. Indeed the government, even in the late
eighties, was actively fostering the development of a number of
'national champion' companies which would be large enough to
face up to global competition. One of the interesting aspects of
these interventionist policies is that they have been largely
accepted by mainstream business, which has worked hand in
hand with senior civil servants in the ministries.
This level of co-operation between the government and industry
has been aided by the influence of the French education system,
which pushes the brightest pupils through a system of elite
schools known as the Grandes Ecoles. Graduates of the Grandes
Ecoles tend to enter either large commercial organisations or
the civil service and this educational brotherhood has created an
affinity of thinking across the senior echelons of French
business society. It has even been said that the best way to
become a PDG (CEO) of a major French company is through a
senior position in an important ministry.
France remains the 5th largest economy in the world and boasts
world leading organisations in banking and finance, aeronautics
and many hi-tech fields.