Alcatel and Lucent
Referring to the case and this chapter, discuss what conditions and negotiation factors pushed forth the merger in 2006 that were not present in 2001.
The negotiation process includes the following parts: preparation, relationship building, the exchange of task-related information, persuasion, concessions, and agreement (Deresky, 2011, p. 164).
In 2001, the Alcatel and Lucent could not agree with each other about how much control the company of Alcatel would take for the new company. Lucent wanted the merger to be equal rather than a takeover by Alcatel. The negotiation failed because the two companies did not exchange the task related information, stating how much control Alcatel would take in the future. Alcatel’s chief executive, Surge Tchuruk, reassured the shareholders that the new company Alcatel-Lucent is “truly global and has not equivalent today and won’t in the future”.
Research the status of the merged company at the time of your reading of this case. What has happened in the industry since the merger, and how is the company faring?
Since the merger, there have been a lot technological challenges, which include invention and innovation of more advanced telecommunication systems. Telecommunication industries face high competition from countries like China and Korea (Scroxton, 2008).
At present, the company is the world’s first truly global communications solutions provider, with the most complete end to end portfolio of solutions and services in the industry. There are four operation segments in Alcatel-Lucent, including developing, delivering and supporting best in class products, solutions and services for our service providers, enterprise and industries customers (Alcatel-Lucent, 2010).
In May 6, 2011, the company (Alcatel-Lucent) released its result in the first quarter of 2011. At the beginning of 2011, the company kept the momentum of growth in the year and the company’s revenue in the first quarter was an increase of 15.2% on the previous year.
Evaluate the comment that the merger is “a giant transatlantic experiment in multicultural diversity”. What evidence is there that the company has run into cross-cultural problems since the merger took place in 2006?
The merger can be seen as a giant transatlantic experiment in multicultural diversity because the two giant companies are located across Europe and North America with business partners in Asia and possible in African and as Mr. Tchuruk said admitted that the company is an international company with a wide mix on nationalities. The wide mix on nationalities creates the multicultural diversity issues that the new company will be facing. Both the Alcatel and Lucent are big companies that at one time each operated solely within their respective countries and/ or states. Business belonging for instance; is a factor that not only affect the company at present but also in the year 2001