...Case answers 1. The merger which was to be enacted in 2001 between the Alcatel, a telecommunication company in Paris- France and Lucent telecommunication and technology giants in the United States of America failed due to misunderstanding of the share-ability and resource control should they have collaborated in 2001 (Hartley 2010). The Lucent Company from US realized that Alcatel never intended to equally share and control the company after the merger; instead Alcatel intended to take over control of the merged company. To Lucent, this was not possible hence withdrawal from the deal leading to the collapse of the intended merger of 2001 (Advani 1998). However, due to frequent failure of Lucent company in merger deals, the company management realized that Alcatel intended to monopolize the merger company afterwards hence withdrawal from the deal (Anonymous 2004). From the consummated transatlantic relationships, the two telecommunication companies reengaged into merger deal, which was effected when the shareholders from the two companies came in to terms regarding the signing of the merger deal conducted on 7th Sept, 2006 (Mcfarlin & Sweeney 2008). The Alcatel company was however, not contented with the procedural ways and terms involved in handling both financial and management issues within the merged company (David 2008) 2. The merged company revised its financial concerns downwards which led to resignation of some top executives as well as business unit recognition...
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...Assignment 1: Business Analysis 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...
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...M2:The importance of employability, and personal skills in the recruitment and retention of staff Telecommunication Sector (Alcatel Lucent) Employability and Personal Skills Employability is defined as a person's own capability for acquiring and maintaining employment Employability depends factors like the knowledge, personal skills and abilities possessed by the individual and the way he presents those assets to employers. In other words it is the process of self assessment of an individual which can be done by himself or by some other person or agency. Importance of Employability and Personal Skills - In the Recruitment and Retention of staff : While in the process of hiring and selecting individuals in an organisation, the management has to identify a certain selection criteria. This selection criteria consists of a list of abilities and skills, in addition to certain education standard an individual must possess if he has to qualify for that position. An individual who has acquired certain skills like computer knowledge (hardware / software) will be more valuable for an organisation than the one who does not have this skill. The organisation will not have to train the individual who already has this capability. The organisation will get a “Ready Made” asset which can be utilized straight away on a project. The Alcatel can also short list those individuals with certain basic knowledge or skills in a specified field. The individuals can be trained on...
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...The Alcatel-Lucent Merger – What went wrong? Summary • The original merger negotiations between Alcatel of France, a communications equipment maker based in Paris and Lucent Technologies, a U.S. telecommunications giant, took place in 2001. • The original deal collapse on May 29, 2001, after the two companies could not agree on how much control Alcatel would have. Lucent's executives wanted the deal as a "merger of equals" rather than a takeover by Alcatel. • In 2006, renewed negotiations took place again and in April 2006, Alcatel's chief executive, Serge Tchuruk agreed to pay 10.6 billion euro ($13.5 billion then) for Lucent. This deal was to create the world's biggest telephone equipment maker. • An Alcatel-Lucent merger provided the combined company a strong position in several categories of equipment sold to the major telecommunications carrier: wireless telecommunications equipment, wireline equipment, wireless infrastructure, Internet routers and equipment for carrying calls over the Internet, etc. • After the merger during July 2008, corporate culture of Alcatel and Lucent clashed. The U.S. Company could not adopt Alcatel's French business model and vice versa leading to the resignation of Alcatel-Lucent CEO Patricia Russo and later Serge Tchuruk's resignation. • Mr. Tchuruk and Ms. Russo both struggled to bring together the vastly different cultures of the two companies especially during tough business climates. • In...
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... 2012 Intellectual Property creation witnessing steady growth in India: Report PTI Jun 26, 2013, 06.43PM IST Bharti Airtel gives IP contract to Alcatel Lucent India June 1, 2012 Tags: Texas Instruments general motors | Mercedes-Benz | investments | intellectual property | Intel | Hewlett-Packard | | gdp | Alstom | Alcatel Lucent Alcatel-Lucent launches IP Transformation Center Septemb er 8, 2009 IN-DEPTH COVERAGE India Intellectual Property Alcatel-lucent Alstom NEW DELHI: The country's contribution to Intellectual Property (IP) creation is witnessing a steady growth, however, investments in R&D and patent activities in the country are still relatively slow when compared to developed nations, a report says. According to globalisation and market expansion advisory firm Zinnov's study 'Enhancing the IP Quotient in MNC R&D centres', IP creation is witnessing steady growth in MNC R&D centres, but investments in R&D and patent activities in India are still relatively slow. (A sector-wise analysis…) The study further said India spends just 1 per cent of its GDP on R&D, while countries like Israel spends 4.2 per cent, Japan 3.7 per cent, US 2.7 per cent and China 2.0 per cent. A sector-wise analysis shows that pharma, biotech and computer technology industries are leading contributors to IP creation in the country. Pharmaceutical and biotech companies alone contribute 30 per cent of the patents filed from India...
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...The Alcatel- Lucent Merger; What went wrong? 1. The conditions and negotiation factors that pushed forth the 2006 merger that were not present in the 2001 merger were in 2001 Lucent’s executives wanted the deal as a “merger of equals” rather than a takeover by Alcatel. However in 2006 Tchuruk agreed to pay 10.6 billion euro for Lucent to create the world’s largest telecommunications equipment maker. Tchuruk said the combined company would realize 1.4 billion euro in cost savings over the following 3 years, but they had to cut 9,000 jobs. 2. According to the company's website (http://www2.alcatel-lucent.com/news-center/) it appears that the combined merger is doing very well. Recently on September 13, 2012, Alcatel-Lucent was ranked Technology Super sector leader by Dow Jones with a score of 87/100. This is the second year in a row that the company is recognized in the Dow Jones Sustainability Index (DJSI). The Super sector Leader report highlighted: "growing environmental challenges and resource constraints, Alcatel-Lucent has continuously developed and implemented globally recognized innovations in eco-sustainable communication technologies.”. 3. I believe the merger is "a giant transatlantic experiment in multicultural diversity" because you have to vastly different cultures, Franco-American merging into one combined companies. Although the companies combined experience some cultural clashes but at the end were able to come together and become a successful company...
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...Lucent Technologies Sheila D Griffith ACC230 University of Phoenix, Axia College January 17, 2013 Craig Hanson Lucent Technologies The asset, debt and equity structure of Lucent Technologies is quite stable. For the years of 2003 and 2004 there is a marked trend toward increased assets and decreased liabilities. The overall picture showing that 2004 had about 6% more in assets then did the other years. The changes were really not that great in any category but there was a decrease in receivables but also a decrease in payables, I feel these two balance each other out for this time period. Hopefully this trend will continue as it has in inventory, marketable securities and goodwill. These all have higher percentages for the year 2004 then for the prior year of 2003. Liabilities as I have previously stated, accounts payable has decreased but payroll and benefit related liabilities has increased, long term debt has stayed within . 05% between the two years and other liabilities has decreased, so it seems to me that the overall outlook of Lucent Technologies would tend toward the company being quite solvent. Investors would see that as a whole this is a relatively good company to invest in. What they should look out for would be that our economy is not really healthy at this time which could affect the overall numbers. As an investor I would be the comprehensive loses and shareowner’s deficit. If and it does show that these deficits are becoming less with each...
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...Lucent Technologies Case Lucent Technologies is a company that is backed by Bell Labs research and development who, according to Fraser and Ormiston (2007), “design and deliver the systems, software and services that drive next-generation communications networks” (p. 79). The company has three reportable segments, including Integrated Network Solutions, Mobility Solutions and Lucent Worldwide Services and all three of these segments have suffered from the 2001 decline in the telecommunications market. According to the consolidated balance sheets, Lucent Technologies suffered a decline in their cash and receivables between the years 2003-2004, but overall their total assets showed a profit at the end of September 2004 and their current assets are almost half of their total assets. This shows that the market might be bouncing back and stabilizing and will hopefully see an improvement. Lucent Technologies saw a decrease in their current liability, going from 25.6% in 2003 to 24.3% in 2004, which shows they have the ability to pay off their short term debts. Their debts did increase, which would indicate Lucent has more long term debt. Because of the market shifting, Lucent most likely thought it necessary to pay longer on their assets, but that could be a risky move to shareholders. Hopefully management is right and the need for telecommunication equipment is growing so the company can decrease their long term debt and make their debt structure more appealing to shareholders...
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...Week 2 - Assignment Lucent Technologies Axia College of University of Phoenix “Lucent Technologies design and deliver the systems, software and services that drive communication networks for the next-generation.” (Axia College, 2007) Lucent Technologies are also backed by Bell Labs research and development. Lucent Technologies customer base includes communication service providers, governments and enterprises all around the world. There are three segments that Lucent Technologies specializes in, Integrated Network Solutions (“INS”), Mobility Solutions (Mobility) and Lucent Worldwide Services (Services). INS is software that has a broad range and is related to voice messaging products, data and network management and optical networking. The Mobility segment specializes in wireless equipment and software to support radio access. The Services segment provides deployment, maintenance and support in their products. In 2001 through 2003, Lucent Technologies had a decrease in capital spending due to the economic slowdown. 2004 appears to be more profitable then the previous years. When looking at the common-sized balance sheet the total current assets of the company have gone down about .9%. Lucent Technologies had a pick up in marketable securities, other current assets and inventories. The decrease in assets came from the less cash on hand in 2004 and the amount of receivables received in 2004. The low receivables could be from customers slow paying due to the economic...
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...ACC230 Lucent Technologies 2. Evaluate the asset, debt, and equity structure of Lucent technologies, as well as trends and changes found on the common size balance sheet. Assets are current assets plus long-term assets, current assets were about 49.42% and fixed assets equal about 10%.Which has been mostly financed by long-term liabilities of 96% and short-term liabilities of 31%, this equals to 127% financing do to negative equity on previous year losses. In 2004 assets decreased to at about 48.52%, the company sold some of the fixed assets equaling about 13.5%. There was also an increase in inventory from 4% in 2003 to 4.8% in 2004. There was an increase in long-term liability of about 9% but there was also a decrease in short-term liability of about 9.5% which helps offsets the increase in the long-term liabilities. There was improvement in equity of about 9% for the year. 3. What concerns would investors and creditors have based on only this information? According to the balance sheet the company is not financially sound with mostly long-term financing 82% and short-term of about 26% a total of about 108% this is still high, Lucent inventory has also increased this is also something that needs to be kept in mind if the demand for the product starts to decline and there’s to much inventory that’s not moving what will be the carrying cost and can the company with stand those costs, and as an investor or creditor I am sure they definitely don’t want...
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...Cases from Management Accounting Practice Volume 15 edited by Wayne Bremser Villanova University Jim Mackey California State University Sacramento The American Accounting Association (Management Accounting Section) Institute of Management Accountants (Committee on Academic Relations) Published by Institute of Management Accountants 10 Paragon Drive, Montvale, NJ 07645-1760 Claire Barth, editor and compositor Copyright © 2000 by Institute of Management Accountants. All rights reserved. IMA publication number 00355 ISBN 0-86641-291-3 Preface T he cases in this volume were presented at the Management Accounting Section of the American Accounting Association’s 2000 annual meeting in Mesa, Arizona. The cases describe the implementation and application of management accounting innovations to systems designed to support the maintenance and creation of value in the modern enterprise. Each of the cases presents an application of management accounting techniques to support change management. Starting with an excellent review of the strategic management of new product lines by Mercedes Benz, Tom Albright contributes an interesting and insightful picture of how target costs need to consider both current and strategic value issues. Mercedes’ use of a target cost index to integrate cost and strategic value is particularly interesting. The next three cases focus on the implementation and use of the balanced scorecard and performance measures to influence...
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...* Mini Case Study #1 A) Explain how concepts of organizational justice may be used to explain the success of the incentive programs described here. * Organizational justice draws an overall picture of what is fair in the workplace that is composed of distributive, procedural, and interactional justice (Robbins & Judge, 2013, pp. 222-223). In the case of Rogan, he was not able to provide his 107 employees with pay increases, however the cost savings incentive made up for that. In fact, the employees at Rogan got what they deserved based on the ideas they gave (or interactional justice). Likewise, Aspect Communications incentive plan is based customer service (or procedural justice) in which all 400 employees are equally rewarded when the customers are happy. At the Calvert Group, distributive justice was implemented where the bonuses are distributed to the outstanding performers as well as regular distributions of the company’s yield. As a result, employees will work harder in efforts to monetary bonuses. Indeed, the incentive plans at all three companies are based on a fair outcome and in the end will have a positive impact on the employee as well as the employee. Moreover, the employees will have a sense of satisfaction at their jobs, which increases production and quality. Effective incentives involve more than just money. Explain what these three firms are doing in recognition of this fact. While monetary incentives are great but money does not buy happiness...
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...TRIPLE-A OF SUPPLY CHAIN The concept of Triple A of supply chain is introduced by professor Hua. L.Lee . The concept was published in Harvard Business Review (October 2004). He focused that the traditional holy grails of supply chain i.e. high speed & low cost are not sufficient for an organization to survive in the market because they do not provide competitive edge to the organization over its rivals. The three As on which an organization can get success are as follows: (1) Agile, (2) Adaptable, (3) Alignment. In 21st century organizations supply chain efficiency is necessary but not enough. Only companies that build agile, adaptable & aligned supply chains, get ahead in comparison to its competitors. Any two of these dimensions are not enough. All three needed to make supply chain successful. AGILE * respond quickly to sudden changes in supply or demand * handle unexpected external disruptions smoothly and cost effectively * Recover promptly from shocks such as natural disasters, epidemics, and computer viruses. Objectives: * Respond to short-term changes in demand or supply quickly, and * Handle external disruptions smoothly Methods Recommended: * Continuously provide supply chain partners with data on changes in supply and demand so they can respond promptly. * Collaborate with suppliers and customers to redesign processes, components, and products in ways that give you a head start over rivals. * Finish products only...
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...originality instead the leadership qualification should be based on skills and expertise in the same line of duty (David 2008). In the field of Technology, it is adept to select a leader who understands the prevailing business conditions, and also able to predict the future business strategies through proper scheming in line with production line for instance; the Alcatel-Lucent telecommunication company CEO should be focused on technological progress of the company to meet the changing consumer requirements (Endlich 2004). However, with an outspoken leader, the company can technically benefit from other companies dealing with the same products and services all over the world creating more economies of scale (Scroxton 2008). Corrupt business deals The numerous third party shareholders who are in most cases the key company operators suffer greatly at the expense of the merger (Advani 1998). However, this negatively impacts on the company lowering the product sales. In business, marketing plays a key role in the progress of the company, due to the large number of unsatisfied third party business partners who struggle at the expense of the company; they too are able to advertise the companies to other clients though negatively due to unfavorable business terms which includes a form of exploitation (David 2008). Conclusion In summary, Alcatel-Lucent merger within the transatlantic market experienced a lot of problems in the quest to achieve their business goals. However, it is adept that...
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...MG 6303 FALL 2013 Case Assignment Questions for Cases To be Downloaded by Students (Harvard Website: Instructions below) CASE # 1: CHAPTER # 6: Manfield Coatings Co. Ltd.: Quality Management As The Winning Formula (# HKU312): Asia Case Research Centre: The University of Hong Kong. Questions for Analysis: DUE NOVEMBER 4, 2013 1. How does quality enable Manfield to be a niche player? 2. What appear to be the critical success factors of Manfield’s quality management system? 3. Is ISO 9001 Certification a guarantee of Quality for Manfield? CASE # 2: CHAPTER # 11: Lucent Technologies: Global Supply Chain Management: (# GS-01): Graduate School of Business Stanford University. Questions for Analysis: DUE NOVEMBER 18, 2013 1. Was the hub-and-spoke process the right model for the evolving environment? 2. How could Lucent mitigate exposure to material shortages without increasing inventory? 3. Should they continue to drive internal improvements, or should they consider outsourcing? Dear Student, You have registered for MG6303 Fazio Fall 2013 (MG6303). This message explains how to get the course materials you need for class on the Harvard Business Publishing for Educators web site. Course link: https://cb.hbsp.harvard.edu/cbmp/access/21342876 You need to register on the site to create a user name if you do not already have one. Some course materials are PDF documents and you can...
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