Société Nationale Maritime Corse Méditerranée (SNCM): Sink or Sail?

Published 26 Jul 2019
Reference 6500
Industry Maritime
Region Europe
Length 16 page(s)
Language English
Summary

The case describes how a loss-making ferry company was brought back to financial health, modernised and recapitalised in less than two years, amidst a context of political pressure, stakeholder hostility and a €600 million fine from the European Union.
The Société Nationale Maritime Corse Méditerranée (SNCM) was sinking under the weight of French blockades and belligerent unions. Ferries were hijacked and a million people took to the streets to protest against potential job losses, disrupting passenger services to/from Corsica at the peak of the summer season.
In May 2014, Guillaume de Feydeau was appointed CEO to devise a turnaround plan to save the former state-owned company from bankruptcy. The new management team not only had to master the political and social intricacies of the situation, but time was of the essence: the majority shareholder wanted out and cash was running dangerously low.

Teaching objectives

The case focuses on:
• How to develop a turnaround plan.
• How to analyse stakeholders’ positions.
• How to navigate through a politically sensitive environment.
Key takeaway:
• Aligning all stakeholders around a common objective is vital to succeed with a turnaround plan, as well as ensuring on-going, open and transparent communication.

Keywords
  • Turnaround
  • Restructuring
  • Bankruptcy
  • Nationalisation
  • Trade unions
  • Corsica
  • Local government
  • European Commission/Union
  • Privatization
  • State aid
  • EU regulation
  • Q41819