The alcatel lucent merger essay

1 . Referring to the case and this chapter, go over what circumstances and settlement factors pushed forth the merger 5 years ago and weren’t present in 2001. Negotiation identifies the process of debate by which two or more parties seek to reach a mutually suitable agreement. This comprises of five stages: preparation, relationship building, the exchange of job related information, persuasion and concessions and agreement. (Helen Deresky, 2000) In 2001 Alcatel and Lucent could not agree on just how much control Alcatel would have, Lucent wanted the merger being an equal 1 rather than a takeover.

Alcatel obviously did not agree to that. The negotions failed in 2001 because the corporations did not exchange task related information, they were doing not know what the additional wanted.

Sherman and Übertrieben kritisch (2006) state that disputes, uncertainty and disappointments about the share of control in joint-venture is one of the main reasons so why such proposals fail, and this is not really unique in cases like this. The 06\ negotiations exercised because Lucent’s management no longer had concerns regarding who would maintain power and there was even more pressing concerns to worry about.

Alcatel leader Serge Tchuruk encouraged shareholders to back the merger to make it more successful and gain competitive benefits over competition from china that sprung up between 2001 and 06\. Competition forced this two companies to come together to further improve their location in the market.

2 . Research the status of the merged business at the time of the reading the situation. What provides happened in the marketplace since the merger, and how is definitely the company faring? Six years have handed since the combination and after the resignation of American CEO Patricia Russo and French board member Serge Tchuruk due to cross-cultural uncertainty, the company equiped French leader who lived in US, Philippe Camus and Ben Verwaayen, a Dutch in the placement of CEO. The approach was a accomplishment since Philippe Camus was closely acquainted with both nationalities, French and US, and Ben Verwaayen, being Nederlander had a ‘neutral’ nationality in the company, but nevertheless was likewise closely acquainted with cross-cultural problems. In the end, it absolutely was ensured why these two executives had a comfy working environment and had no personal issues with the other person. On April 1st 2013, Ben Verwaayen was substituted by FrenchmanMichel Combes since CEO.

They may be in the leading three together with the services they give and was recognized by Thomson Reuters like a Top 90 Global Innovator and named by MIT Technology Assessment among 2012’s Top 40 “World’s Most Innovative Companies.  They boasted revenues of 14. four billion pounds in 2012 and has operations in above 100 countries (Alcatel-Lucent website, 2013) three or more. Evaluate the comment that the combination is “a giant transatlantic experiment in multicultural variety.  What evidence perhaps there is that the company has encounter cross ethnical problems considering that the merger came about in 2006? The statement the fact that merger among Alcatel and Lucent can be “a huge transatlantic test in multicultural diversity appropriately describes the nature of the merger and all the cross-cultural issues involved. This is because the merger brought together two social different companies and they were required to find ways to make it work. The chinese language barrier is of course a big issue, The english language is the general language in the company although French is a necessity when dealing with French shareholders.

The very fact that the American CEO Patricia Russo and French plank member Serger Tchuruk wasn’t able to get along is evidence get across cultural concerns. “Roger Entner, a elderly vice president and telecommunications analyst for Nielsen IAG, a market research company, said Lucent executives acquired found hard to adjust to Alcatel’s corporate and business culture. A single barrier have been language. Another, he explained, is the close interplay among French government bodies and private-sector executives.  (The New York Times, 2008). In Portugal, business can be described as male focused field and Mrs. Russo found that very hard to regulate where The french language business and politics terme conseillé. France as being a high circumstance culture as well as the US using a low circumstance culture may well have played out a role inside the resignation from the original CEO and leader. A low circumstance culture is one in which will things are fully (though concisely) spelled out. Everything is made precise, and there is substantial dependence on precisely what is actually explained or created.

A high framework culture is usually one in which the communicators presume a great deal of commonality of knowledge and views, in order that less is spelled out clearly and much more can be implicit or perhaps communicated in indirect methods. 4. Simply how much of the decrease do you feature to leadership problems, rather than industry factors? The company was facing competition from low priced Chinese competition and the industry was changing. That is a primary reason the merger took place 5 years ago. According to the case, the market was changing over and above recognition anddemand was worsening.

There was several leadership problems with Alcatel supervision feeling just like Lucent received the management role in the company and people were being designated based on nationality and not expertise. But to become fair, the industry was bad and changing as well as the inability with the leadership to get along and solve problems together injure the company. Right after a combination is a essential time for a company with the HUMAN RESOURCES department upon full recovery mode. There needs to be cohesion to ensure that the company to have success and there were no unity. Leadership concerns and industry factors got equal roles to play in the decline.

a few. What, if any, factors should have recently been negotiated in another way? The issue of who would lead the organization should have recently been negotiated differently so that everybody will be represented. The supervision of the business played a role in the decrease and I think if time was spent in making sure the people employed had those skills had to bring everybody together to get the common very good of the organization, then there would not have been so much reduction. Time also needs to have been put in in creating ways to connection the tradition gap and put everyone on a single page regarding the goals with the present merged company. Overall, with a change in management, Alcatel-Lucent is still going strong and seems to have resolved the combination cultural concerns. There are at this time talks of which merging with Nokia Solutions. We will see how it turns out.

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