In the modern universe, most of the companies try to unify their company with another company. There are some advantages and disadvantages in unifying. The chief advantages are repute, trade name image can be increase through the meeting. The industry will go simple through meeting and this is the competitory advantage, Alcatel Lucent Company can derive from the meeting. The chief disadvantage in meeting is transverse civilization struggles and this instance survey is about Alcatel Lucent amalgamation. Alcatel Lucent is one of the taking companies in nomadic, fixed, Optics engineerings and a innovator in applications and services ( Alcatel Lucent, 2011 ) . Harmonizing to the meeting process, Alcatel Lucent amalgamation faced transverse civilization struggles from France and U.S. Still, the company tries to command the civilization conflicts in the organisation. This study chiefly describes the conditions and dialogue factors, industry alterations after amalgamation and the international challenges of Alcatel Lucent.
1. The conditions and dialogue factors pushed forth the amalgamation in 2006 that were non present in 2001
Harmonizing to the instance, in 2006 both companies come up with new conditions and dialogue factors. Chiefly, France stockholders, they gave their blessing to unify Alcatel company and Lucent company. Alcatel ‘s main executive Mr. Techuruk encouraged 1500 stockholders in Paris by adverting Alcatel Lucent is genuinely planetary and has no tantamount today and wo n’t in future. He besides agreed to pay 10.6 billion euro for Lucent company to unify Alcatel and Lucent companies as Alcatel Lucent. The stock barter was valued at one Alcatel American depositary portion for every five Aglow portions. Both companies agreed to print English as the official linguistic communication of the Alcatel Lucent. After sing above conditions and factors, both company stockholders gave their blessing to unify Alcatel Lucent as one company. They besides decided to cover with both pre-merger and post-merger integrating issues such as wages, benefits, appellations and other structural maters by keeping a series of meetings between the top HR executives at the two companies.
2. merged company
A merged company which means the combination of two companies where one corporation is wholly absorbed by another corporation. After the meeting process, both companies have to make concern as one company. As a consequence of that, they should contrive new individualities for the company. They could n’t utilize their separate individualities for the concern. Any company, they could n’t unify with another company without the blessing of stockholders. Negotiation besides really of import for incorporate companies. Negotiation is the procedure of treatment by which two or more parties aim to make a reciprocally acceptable understanding ( Strategic International Management, 2011 ) . There are five phases included in the dialogue procedure. Those phases are readying, relationship edifice, interchanging undertaking related information, persuasion and grants and understanding. Chiefly, any organisation, they wants to follow this dialogue procedure when they planning to unify their company with another company.
Alcatel is a company which produce the communicating equipments for their clients and Lucent company, they provides telecommunication services to their clients. After unifying these two companies, their industries become simple. As Alcatel Lucent, they did their gross revenues of $ 25 billion. They besides produced many telecommunication merchandises such as radio equipments, wire line equipments, radio substructures, cyberspace routers, equipment for transporting calls over the cyberspace, etc. The negative side of the industry is company loss $ 7 billion since the amalgamation. In add-on to that, Alcatel Lucent around 16500 occupations since amalgamation. As the advantages of the industry, for the 4th one-fourth 2006, the company posts adjusted pro-forma grosss of Euro 4,421 million and runing net incomes of Euro 21 million. The company reported Euro 18,254 million adjusted pro-forma and operation net income of Euro 1,025 million for the full twelvemonth 2006. On 31st December 2006, their entire hard currency and marketable securities was Euro 6.7 billion go forthing a net hard currency place of Euro 508 million.
3. Evaluation of the remark that the amalgamation is & A ; acirc ; ˆ?a elephantine transatlantic experiment in multicultural diversity. & A ; acirc ; ˆA?
When Lucent ‘s amalgamation with France ‘s Alcatel, Russo became CEO of the combined Company and Tchuruk became president. Harmonizing to the American civilization footings, that means Russo runs the company. But, in the Gallic civilization footings, the president is the foreman. In add-on to that, Americans and French have really different thoughts about what to make when a company is in crisis. The American penchant is to right-size the concern, a euphemism for cutting occupations and take downing costs. In Gallic, their penchant is to protect the occupations by looking for aid from a friendly authorities. Harmonizing to the above state of affairs, Alcatel Lucent have to confront troubles because the two nationalities are seeking to protect the occupations of their compatriots. Chiefly, the Gallic and the Americans have different concern civilizations. Their concern forms are wholly different. In Alcatel Lucent, both American and Gallic civilizations affect for the determination doing procedure in the company. Alcatel Lucent have to happen a solution to work out the civilization conflicts in the organisation.
Harmonizing to the instance, there is an grounds that the company has run into cross-cultural jobs since the amalgamation took topographic point in 2006. The grounds is, in July 2008, the Alcatel Lucent CEO Patricia Russo resigned by adverting she ca n’t work with her fellow board member Serge Tchuruk. As a consequence of that, Mr. Serge Tchuruk besides resigned from his occupation. Chiefly, these transverse cultural jobs occurred because the overall leading of the company had been handed to the mark company.
4. The international challenges that Alcatel-Lucent faces as it moves frontward as a combined company
Low cost competition from new Chinese challengers
There are many Chinese rivals in the industry. Those rivals chiefly affects the Alcatel Lucent ‘s concern. In China, their labour cost is really low comparison to the France or USA. As a consequence of that, the merchandise cost in China is really low and it affects with the Alcatel Lucent ‘s merchandise monetary value. Most of the clients, they ever try to purchase inexpensive merchandises from the market. Alcatel Lucent company, still they could n’t gain adequate net income from their industry. They do their concern as low net income, low growing company. For illustration, Alcatel Lucent ‘s chief Chinese rivals are ZTE and Huawei. Their cost constructions are more favourable than Alcatel Lucent Company.
Technology alterations besides really of import for Alcatel Lucent Company. The engineering is ever acquiring bettering. As a consequence of that, many companies attempts to add new characteristics to their equipments. As an international company, Alcatel Lucent besides wants to see these technological alterations when they do their production procedure. Sometimes, Alcatel Lucent company have to pass more money to acquire latest engineering for their merchandises. Alcatel Lucent is the lone Western Company to offer or develop merchandises for all radio engineerings ( GSM, UMTS/HSPA, LTE, CDMA2000, WiMAX ) .
Transformation to digital economic systems
On 7th of September in 2007, Alcatel Lucent and Nextgen Networks started their broadband concern in Australia. Nextgen Networks owns and operates Australia ‘s 3rd fiber web. This is the first Australian and Asia Pacific foremost with the bringing of traffic 100 Gbits velocity. When Alcatel Lucent come ining to the digital economic systems such as Australia, the company have to reassign of over 100,000 mp3 files in 60 seconds or the unrecorded cyclosis of over 15,000 HDTV channels parallel. Chiefly, the company should better their optical and IP engineerings to make the above procedure successfully. Alcatel Lucent have to happen some cost effectual schemes when they do their fast broadband concern in Australia. They besides have to increase web capacity and manage quality of service to run into new client demands in Australia.
Harmonizing to the rural inclusion, Alcatel Lucent Company have to spread out their concern all over the universe. When they planning to get down their concern in a rural country, the company have to set up the background to get down concern over at that place. Chiefly, the company have to built partnership with local companies to make high added value services. The company besides have to see the local population in those countries when they start concern internationally.
Cross Culture Conflicts
Harmonizing to the instance, there were some alterations in direction squad and board of managers in Alcatel Lucent company. CEO, Pat Russo resigned from her occupation in July 2008. Non executive president, Serge Tchuruk besides resigned from his occupation. Pat Russo clearly mentioned that she can non work with Serge Tchuruk. At that clip, there were many dissensions between Russo and Serge in the company. Still, both U.S and France civilizations affects on Alcatel Lucent ‘s concern. Alcatel Lucent as a transnational company, they have to get down their concern in assorted states. Chiefly, they have to do cultural alterations inside the company harmonizing to the state to state. For illustration, If Alcatel Lucent starts their concern in Dubai, they have to acquire new employees from Dubai and they have to plan their selling harmonizing to the civilization of the state.
After unifying Alcatel and Lucent Companies, their industries become one industry. The Alcatel Lucent amalgamation provides many equipment and telecommunication classs to the clients. The company invented many new equipments for the clients after unifying. Before the amalgamation, both Alcatel and Lucent companies, they did their concern individually. As a France company, Alcatel had their ain concern civilization and Lucent company had ain concern civilization as U.S company. As a consequence of that, both U.S and France civilizations affects on Alcatel Lucent amalgamation. The amalgamation has many jobs under transverse civilization struggles. The Company lose their old CEO and Non executive president because of transverse civilization struggles. These cultural struggles chiefly affects on Alcatel Lucent ‘s concern.
In Alcatel Lucent, they have a immense competition from China. Their chief rivals are ZTE and Huawei. The merchandise monetary value of Alcatel Lucent is really higher comparison to the Chinese rivals. Chiefly, Alcatel Lucent should hold to implement new schemes to cut down the merchandise cost. Most of the clients try to purchase low cost merchandises from Chinese Companies. As a consequence of that, Alcatel Lucent company will lose net incomes from their industry. In add-on to that, the company besides should hold to see technological alterations, transmutation to digital economic systems and rural inclusion when they do concern internationally.