...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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...Lucent Technologies, Inc. Revenue Recognition CONCEPTS a. In your own words, define “revenues.” Explain how revenues are different from “gains.” Estos se pueden definir como aquellos recursos de carácter económico generados por una entidad en un lapso de tiempo; de acuerdo con las Normas de Información Financiera, estos se pueden definir como el incremento de los activos o el decremento de los pasivos de una entidad, durante un periodo contable, con un impacto favorable en la utilidad o pérdida neta o, en su caso, en el cambio neto en el patrimonio contable y, consecuentemente, en el capital ganado o patrimonio contable, respectivamente. Por otro lado, A diferencia de los ingresos las ganancias son el resultado de disminuir a los ingresos todos los costos y gastos en los que incurre la entidad para su operación. b. Describe what it means for a business to “recognize” revenues. What specific accounts and financial statements are affected by the process of revenue recognition? En el ámbito de los negocios, el reconocimiento de ingresos resulta de suma importancia, pues esto significa el momento en el que una entidad debe dar por hecho o no que ha materializado la obtención de los mismos, contablemente, esto es regulado por el US GAAP con su SAB 101, ya que este contribuye a reafirmar muchos otros conceptos contenidos en las normas sobre el reconocimiento de ingresos como los contenidos en las IFRS. En el ámbito de gestión de negocios el contar...
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...Lucent Technologies Judy Sweet ACC/230 April 8, 2012 Sonsia Richerson Lucent Technologies Lucent Technologies is into designing and delivering the systems, software and services that drive next-generation communications networks. Backed by Bell Labs research and development, it uses its strengths in mobility, optical, access, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for our customers, while enabling them to quickly deploy and better manage their networks. Its customer base includes communications service providers, governments and enterprises worldwide. We have three segments organized around the products and services we sell. Financial Analysis: The asset structure of Lucent deteriorated between 2003 and 2004. The current assets of the company during 2003 constituted 49.4% of all assets. During 2004, this position declined to 48.5%. Inventories climbed from 4.0% in 2003 to 4.8% in 2004 (a twenty percent increase in inventory holdings). Cash and cash equivalents declined from 24% of all assets in 2003 to 19.9% during 2004. The debt structure of the company declined as well between the two years as well. Although current liability position decreased from 25.6% in 2003 to 24.3% during 2004, the debt seems to have shifted to long term as this category increased from 23% of all liabilities to 26.4% during 2004. The equity structure of the firm improved from a deficit constituting a negative...
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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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...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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...Differentiating Depreciation Methods Sederick Nelson ACC/230 June 22, 2014 Jayme Edin Straight line method of depreciation relies on the passage of time in determining how the value of an asset depreciates over a period of time. Accelerated depreciation method allows companies to write more their assets in the earlier years and less in the later years. There are different depreciation methods that require different rates to be calculated, not every asset calls for the same depreciation method because the rates of every asset is not the same and a company can gain or lose more depending on which depreciation method is used. Companies use different depreciation method for tax and financial reporting is because tax reporting has its own set of rules and regulation that are to be followed. Financial reporting rules fall under the (GAAP) General Accepted Accounting Principles and their rules are different. Advantages and disadvantages of using different depreciation methods, when using straight line depreciation an accountant knows exactly how much will be expensed on the item each year until it reaches the end of its useful life. The profits for the future...
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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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...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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...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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...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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...Ji’nan Broadcasting Corporation What are the key issues facing Zhou Jianglin? The DVP is scheduled for launch in January 2002 which was 6 months from the initiation. Based on inputs from Chin(Postel) a project of DVP’s magnitude would require a lead time of 8-9 months. An alternative would be to source equipment from multiple suppliers. Sourcing the equipment from multiple suppliers would Type approval which would add uncertainty to the project and the approval itself would take 3 months. If multiple suppliers are involved clear demarcation points are required to avoid potential conflict of interest. There were internal objections from other division MDs. MD of Radio and Television Programming was of the opinion data & voice was the business of China Post & Telecom. Another MD, of the Radio & Television Broadcasting was of the opinion Alcatel equipment was more robust than Nortel’s. Budget was a key constraint as RMB 110 million was sanctioned but the initial estimates suggested it might cross the same. JBC needed in-house expertise to remotely monitor the network which was lacking. Zhou was not sure if reselling of long distance capacity was permitted by the Chinese government. - - Trace the history of decisions made in the data and voice project. 1) What were the decisions made? What were their implications? Decisions made and their implications are as follows - To launch the DVP by January 2002 – This decision was made without keeping in mind the time required to...
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...27th Feb 2006 Working your way through the traffic, Solving mazes like a maverick You come to work every day, Sometimes at nights you also stay. All along you battle it out, Sometimes you type, sometimes you shout, But a battle it is for everyday, Promising, to never go away. Welcome to the first edition of OYE! It has been a long cherished dream of OASIS members to have a platform where members can express, share and enjoy their literary skills. OYE! is the first step towards realizing that dream. Bringing out this magazine has been a long, eventful and a very fulfilling journey for the entire team of OYE!. It was not an easy ride. Hurdles were encountered and conquered with hard work and dedication of the OYE! Editorial Team Members, without neglecting their professional responsibilities. The OYE! Team would like to thank all the people who have contributed in realizing this magazine. Special thanks to the authors of all the articles that were submitted. We hope you will continue to patronize OYE! .Credits are due to many people for their special effort… • • • • • • • • • • • • • • • Dr: Mruthyunjaya Kori for reviewing and approving our magazine. Seema Vijay Singh and the HR Team for helping us with all the HR as well as legal issues. Kannan K and all the OASIS committee members for their help and support Ganesh.D for naming the magazine as OYE!, leading this effort and maintaining the focus of the team. Siddharth Das for naming and introducing dUZZO , the official mascot...
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...What happened in the industry since the merger, and how is the company faring? (Financial report of Alcatel-Lucent : http://investing.businessweek.com) Cross-cultural misunderstanding and problems took place when American CEO Patricia Russo and French board member Serge Tchuruk were present at Alcatel Lucent. After their departure the organization took appropriate actions by placing French chairman Philippe Camus and Ben Verwaayen in position as the new heads. Philippe Camus is a French who lives in America so he was familiar with both the American and French culture. Ben Verwaayen, being a Dutch has no effect on the cultural as he had a neutral nationality in the company, but he was still closely familiar with cross-cultural issues. Most importantly, both executives were comfortable with working with each other and had no issues on personal level. Since then Alcatel-Lucent has impressively reported in 2009 for 15.2 billion Euros of revenue. The company is currently operating in more than 130 countries worldwide with both executives still in the same position. Moreover, Alcatel-Lucent was able to become worldwide leader in fixed broadband access market (2008), named ‘Strong Performer’ for Interaction-Centric Customer Service Solutions by Genesys (2008), won IEC InfoVision Award (2008), and ranked No.2 in Global Telecommunications Services Market (2008) (Alcatel-Lucent web-site, 2011 Evaluate the comment that the merger is “a giant transatlantic experiment in multicultural...
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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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...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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