Abstract
The Michelin Company was founded in 1889 in Clermont-Ferrand (France) by Edouard Michelin. Initially, Michelin employed 52 persons in a plant spread over 32 acres. Edouard Michelin benefited of his brother's (André Michelin) support. The two brothers were complementary: André was an innovator, and Edouard a charismatic leader. This family orientation is a key element for understanding the Michelin Company. The company has been led as one of the largest family businesses, which explains the tensions caused by relocation, or the uncertainty that followed Edouard's sudden death. Indeed, Edouard Michelin's disappearance from the firm was a veritable tragedy for the company. His father, François Michelin, was engaged with the international development of the company. Very early, François handed the reins of the company to his son Edouard. At the time of Edouard's death he was the youngest CEO on the CAC 40 (Paris Stock Index), at only 42 years old. After this tragic accident, Michelin's stock was going down and the future seemed uncertain. Now, for the first time, the reins of the company passed into the hands of a person who was not a member of the Michelin family. With the appointment of Michel Roullier, Michelin began to lose its old family structure (delocalization issue), and the company had to readjust its image to its values.
