Abstract
Alcatel Lucent Technologies is a builder of network base stations, towers, and end to end networks IP solutions for the construction of 3G/4G wire and wireless technologies. Alcatel-Lucent Technologies have unique research environment; Bell Labs. Employments benefits and multi-cultural environment are key merits at Alcatel-Lucent Technologies. Workforce reduction process and lack of strategic business decision are the main drawbacks of Alcatel-Lucent Technologies. With Nokia acquiring of Alcatel-Lucent Technologies, a new giant company is formed to better compete with infrastructure telecommunications as Cisco, and Ericson.
Keywords: Alcatel-Lucent, Bell Labs, Business, Multi-cultural
Assignment 1: Business Analysis
Alcatel-Lucent is leading converged IP networking, ultra-broadband access, and could technologies company. On November 30, 2006, Alcatel-Lucent Technologies merge occurred by 25-billion-euro balance. It employed about 80,000 people worldwide and has annual revenue of about 16 billion euros. Alcatel-Lucent technologies combined two giant companies - Alcatel and Lucent Technologies. Lucent Technologies was spun off from AT&T while Alcatel parent company was CGE (la Compagnie Générale d’Electricité).
Alcatel-Lucent Technologies Business Performance Three factors, either economic, social, or both, impacting the performance of the organization you selected
Bell labs innovations have a unique research environment where scientists have the freedom to think and come up with emerging technologies that can be developed at Alcatel-Lucent. Bell labs gain its excellence reputation through its history of innovations such as programming languages, operating systems, transistors, telephony systems, and so forth. Bell Labs has Bell labs technical journal which is published quarterly by John Wiley & Sons With very high quality of research papers and research letters by Bell Labs scientists, and others. It covers wide range of technologies from mobility, physics, optical, data and voice/video networking technologies as well as software services to develop next-generation technologies. Alcatel-Lucent has a good employment benefits, including base salary, retirement package, vacation days, work flexibility and annual bonus. Multi-cultural environment at Alcatel-Lucent is one of the company strength.
Although the telecommunication industries moves aggressively to 4G (fourth mobile generation), Alcatel-Lucent Technologies continues to invest in CDMA 3G (code division multiple access third mobile generation). Similarly, fixed line portfolio of Alcatel-Lucent Technologies, including optics division and its legacy wireline business were seen as lagging the industry direction. Lack of management strategic vision and critical time business decisions caused losses in many of the Alcatel-Lucent annul financial results. Over the past few years, Alcatel-Lucent laid off employees in multiple countries including European, North America, and Middle East. Alcatel-Lucent could not keep remaining employees engaged, motivated and productive. Consistent slow layoff caused low morale, less productivity in research oriented company, and losing key talent.
Three business actions to overcome the factors mentioned above.
Nokia completed its all-stock acquisition of Alcatel-Lucent (ALU) in January 2016. Nokia shall achieve synergies and market opportunities with Alcatel-Lucent Technologies that it cannot possibly achieve alone. Nokia expects to achieve cost savings of nearly $1 billion annually by 2019, which will mean much higher margins for the combined company.
Although Nokia has bad publicity reputation about force reduction, Nokia philosophy is different than Alcatel-Lucent in the layoff process. For example, Nokia is usually doing layoff process very quickly and re-engage the remaining employees faster than Alcatel-Lucent. Nokia hiring philosophy is dependent more on external hiring than Alcatel-Lucent internal hiring, which help to have a new blood into the workforce environment.
Nokia new management has a pioneer vision to close the lack of strategic business decision and slow technology adjustment in Alcatel-Lucent technologies management. Shift planning and re-focus specialties are a key to make this merge successful. For example, Alcatel-Lucent sold the CDMA technology to third party.
References
Corp, N. (2016, Jan 15). Retrieved from Nokia Corp: http://company.nokia.com/en/news/press-releases/2016/01/14/nokia-celebrates-first-day-of-combined-operations-with-alcatel-lucent
Landauro, I., & Schechner, S. (July 2012). Corporate News: Alcatel-Lucent Plumbs New Lows After Warning. Wall Street Journal, Eastern edition , B.3.
Schechner, S. (2013). Alcatel-Lucent to Announce 15,000 Job Cuts; Move Is Firm's Latest Bid to Reshape Itself and Refocus on Core Businesses. Wall Street Journal (Online).
Technologies, A.-L. (2016, 1 15). Alcatel-Lucent Technologies. Retrieved from https://www.alcatel-lucent.com/
Summary
Alcatel Lucent Technologies is a builder of network base stations, towers, and end to end networks IP solutions for the construction of 3G/4G wire and wireless technologies. Alcatel-Lucent Technologies have unique research environment; Bell Labs. Employments benefits and multi-cultural environment are key merits at Alcatel-Lucent Technologies. Workforce reduction process and lack of strategic business decision are the main drawbacks of Alcatel-Lucent Technologies. With Nokia acquiring of Alcatel-Lucent Technologies, a new giant company is formed to better compete with infrastructure telecommunications as Cisco, and Ericson.
