...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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...After reviewing the common size balance sheet, Lucent technologies has experienced an small increase in its total assets. Its cash and cash equivalent have decreased, while their inventory, receivables, and marketable securities have increased. This proves that they are taking in less cash and their products are not revolving as they should. The total assets went from $15,911 in 2003, to $16,963 in 2004. In this amount the balance sheet shows an increase in inventory and other total assets. The amount of inventory went from 632 in 2003 to 822 in 2004 and the other total assets went from 1213 in 2003 to 1813. This proves that the company has less products circulating and this is why the cash flow is declining. The company’s liabilities are increasing, which can put the company at a deficit since there is less money coming into the company. Investors and creditors should be concerned about the decrease in the cash and cash equivalents, the increase in assets and liabilities, and increase in the inventory amounts. All of these factors will cause long term debt for the company. With the cash and cash equivalent decreasing and the assets increasing the company is losing money. The increase in the inventory shows the carrying cost for the company to be very high. If the company is unable to get the products to circulate they will lose any profits that were anticipated. They will also have to determine how much the new products will cost them. This also affects the cost of the company...
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...Lucent Technologies 1 . Lucent Technologies Robert Johnson ACC/230 – Financial Reporting: Peeking Under the Financial Hood 10/16/2011 Instructor: Craig Hanson Lucent Technologies 2 Lucent Technologies over all assets are up from 2003 one million. The cash and cash equivalents are down $442, marketable securities are up $172, receivables are down $152, inventory is up $190, and other current assets are up $600. The total current assets are up $368 from the year before. Marketable securities $636, property, plant, and equipment, net is down $217, prepaid pension cost is up $699, goodwill and other acquired intangibles, net is up $246 and other assets is down $680. The total assets for Lucent Technologies are up $1,052 from what it was in 2003. This shows that the company is doing good business because profits have gone up from the year before. The debt or liabilities for Lucent Technologies were up and down just like the assets. Accounts payable is down $200, payroll and benefit related liabilities is up $152, debt maturing within one year is down $388 and other...
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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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...| | |Lucent Technologies Case | |ACC 230 | | | | | | | | | Lucent Technologies is a company that designs and delivers the systems, software and services that drives the next generation communications networks. They are backed by Bell Labs research and development. They use their strengths in mobility, optical, access, data and voice networking technologies, as well as services, to create new revenue generating opportunities. This makes it possible to help them better manage their networks. Their customers include communication...
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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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...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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...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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...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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... 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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...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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...Alcatel-Lucent is a global telecommunications corporation located in Paris, France. It has, under its wing, Bell Laboratories aka Bell Labs. They were previously known as AT&T Bell Laboratories and Bell Telephone Laboratories is now the research and development subsidiary of the French-owned Alcatel-Lucent. Over the past eight decades, Bell Labs R&D gave birth to new technologies and seminal scientific discoveries. (Alcatel Lucent, para 1) Elisha Grey and Enos N. Barton formed Western Electric Company in 1869. Both of them started a small manufacturing firm based in Cleveland, Ohio which was to become the largest electrical manufacturing company in America. In 1881, Alexander Graham Bell, an extraordinary leader of American Telephone & Telegraph (AT&T), purchased a controlling interest in Western Electric and made it the exclusive developer and manufacturer of all equipments for the Bell telephone companies. Now, the Bell system has provided much telephone services and support to America and Canada in the 1877 to 1984. It was then led by AT&T. In 1898, Compagnie Générale d'Electricité (CGE) was born, founded by a French engineer named Pierre Azaria. It was involved in business with several industries in Germany. Mainly it dabbled in electricity, transportation, electronics and telecommunications. CGE then rose up the ranks and became a leader in digital communications and would be known as well to produce train à grande vitesse – high speed trains in France. In...
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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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...SWOT Analysis Lucent Strengths Lucent’s switch set a new record by becoming the only switch in the history of the ARMIS (Automatic Reporting Management and Information System) Report that has achieved six 9s availability per switch, per year for five straight years. It recorded the best reliability performance of any switch ever, improved by over 22 percent from the previous year (1999), and Lucent is the only switch supplier whose product has been improving consistently over the past few years. (Lucent Widens, 2000) The 5ESS Switch is the most widely deployed switch in the world, providing service in 66 countries around the world and serving for next-generation networks based on packet technology. (5ESS Switch, 2002) Lucent maintained its NO.1 position in worldwide universal port shipments for the sixth consecutive quarter by capturing 48% market share for the second quarter calendar 2002. (Lucent Technologies Continues, 2002) Metropolis (R) DMX (metro optical networking products) has been deployed with more than 35 customers and recently received the “Best Telecom Equipment” award at UTC Telecom 2002, the world’s largest utility telecom technology tradeshow. (Lucent Technologies Optical, 2002) Lucent power systems business has been ranked No. 1 in worldwide and North American sales of power supplies for 1999 by Micro-Tech Consultants, a market research firm specializing in the power supplies industry -the first and only U.S. manufacturer to be awarded the...
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...Internet- 2 Instructor: Lori Wortylko Competing with Cisco What companies are Nortel’s major competitors? Nortel network’s three major competitors are Cisco Systems, Inc., Alcatel Lucent Nokia Solutions and Networks B.V. Is Cisco among them? Yes Cisco is one of Nortel Network’s major competitors. According to Hoovers.com, Cisco is the number one competitor for Nortel. I could not find much about Nortel being in competition with Cisco because Nortel has since went bankrupt. There were so many things that Nortel was doing wrong. So because of that alone, Nortel was no real competition for Cisco. Nortel had a large security breach that was caught in 2004. There were malicious hackers who had gained access to all of Nortel’s documents like emails and ideas. It went on for what is believed to be around ten years or so. By the time Nortel started to sell off its assets in 2009, the hackers had still not been caught. What types of marketing jobs are available? I found a lot of marketing based jobs available on Cisco’s website. I chose Technical Marketing Engineer. The minimum job requirements are: * Experience designing and implementing data center infrastructures. * Experience with Cisco Unified Computing System (UCS). * Strong background on various hypervisor technologies. * Ability to set and meet deadlines. * Excellent troubleshooting and problem-solving skills. * Demonstrated communications skills and experience developing presentations...
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