Alcatel-Lucent

DeMarqus Payne

Case: The Alcatel-Lucent Merger- What went wrong?

1. The first major factor was that the 2006 merger had better communication. In 2001 Lucent wasn’t even sure how much control each company would have. Either a party was trying to hide info or it was a result of poor communication. In 2006 both higher motives to do what was best for the company as a whole, whereas in 2001 the two were more concerned about how each could have an advantage.

2. The telecommunications industry has been growing more and more every year. It has never been easier to communicate with someone no matter the place one is located. Since the merger in 2006 Alcatel-Lucent has won a couple awards for its excellence in telecommunications. Camus and Verwaayen still serve as chairman and chief executive, respectively.

3. The comment refers to how there were so many different cross-culture issues within the merger; the issues came from the top management in regards to different cultures, personalities, and leadership styles. Not related directly to cross-cultural problems but I do see mention of a bribery lawsuit that goes against the Foreign Corrupt Practices Act.

4. I blame it more on poor leadership because even when the particular product or services they specialize in are in low demand, the demand for communication is still high. Better management could have noticed and improvised.

5. I believe they should have done a better job at selecting top managers and delegating the work between them.