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.