The Alcatel-Lucent merger Essay Example for Free

The Alcatel-Lucent merger Essay 1. Referring to the case and this chapter, discuss what conditions and negotiation factors pushed forth the merger in 2006 and were not present in 2001. Negotiation describes the process of discussion by which two or more parties aim to reach a mutually acceptable agreement. It comprises of five stages: preparation, relationship building, the exchange of task related information, persuasion and concessions and agreement. (Helen Deresky, 2000) In 2001 Alcatel and Lucent could not agree on how much control Alcatel would have, Lucent wanted the merger to be an equal one rather than a takeover. Alcatel of course did not agree to that. The negotions failed in 2001 because the companies did not exchange task related information, they did not understand what the other wanted. Sherman and Hart (2006) confirm that disputes, misunderstandings and disappointments about the share of control in joint-venture is one of the main reasons why such proposals fail, and this is not unique in this case. The 2006 negotiations worked out because Lucent’s management no longer had concerns about who would be in power and there was more pressing issues to worry about. Alcatel chief executive Serge Tchuruk encouraged shareholders to back the merger to make it more profitable and gain competitive advantage over competitors from china that sprung up between 2001 and 2006. Competition drove this two companies to come together to improve their position in the market. 2. Research the status of the merged company at the time of your reading the case. What has happened in the industry since the merger, and how is the company faring? Six years have passed since the merger and after the resignation of American CEO Patricia Russo and French board member Serge Tchuruk due to cross-cultural misunderstandings, the company appointed French chairman who lived in US, Philippe Camus and Ben Verwaayen, a Dutch in the position of CEO. The strategy was a success since Philippe Camus was closely familiar with both cultures, French and US, and Ben Verwaayen, being Dutch had a ‘neutral’ nationality in the company, but still was also closely familiar with cross-cultural issues. In the end, it was ensured that these two executives had a comfortable working environment and had no personal issues with each other. On April 1st 2013, Ben Verwaayen was replaced by Frenchman  Michel Combes as CEO. They are in the top three with the services they provide and was recognized by Thomson Reuters as a Top 100 Global Innovator and named by MIT Technology Review among 2012’s Top 50 â€Å"World’s Most Innovative Companies.† They boasted revenues of 14.4 billion euros in 2012 and has operations in over 100 countries (Alcatel-Lucent website, 2013) 3. Evaluate the comment that the merger is â€Å"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 statement that the merger between Alcatel and Lucent is â€Å"a giant transatlantic experiment in multicultural diversity† aptly describes the nature of the merger and all the cross-cultural issues involved. The reason being that the merger brought together two cultural different companies and they had to find ways to make it work. The language barrier is of course a big issue, English is the universal language of the company but French is still a necessity when dealing with French shareholders. The fact that the American CEO Patricia Russo and French board member Serger Tchuruk could not get along is evidence cross cultural problems. â€Å"Roger Entner, a senior vice president and telecommunications analyst for Nielsen IAG, a market research firm, said Lucent executives had found it difficult to adapt to Alcatels corporate culture. One barrier has been language. Another, he said, is the close interplay between French regulators and private-sector executives.† (The New York Times, 2008). In France, business is a male dominated field and Mrs. Russo found it very hard to regulate where French business and politics overlap. France being a high context culture and the US having a low context culture may have played a role in the resignation of the original CEO and chairman. A low context culture is one in which things are fully (though concisely) spelled out. Things are made explicit, and there is considerable dependence on what is actually said or written. A high context culture is one in which the communicators assume a great deal of commonality of knowledge and views, so that less is spelled out explicitly and much more is implicit or communicated in indirect ways. 4. How much of the decline do you attribute to leadership problems, as opposed to industry factors? The company was facing competition from low cost Chinese competitors and the market was changing. That is one of the reasons the merger took place in 2006. According to the case, the market was changing beyond recognition and  demand was weakening. There was some leadership problems with Alcatel management feeling like Lucent got the leadership role in the company and people were being appointed based on nationality and not skills. But to be fair, the industry was bad and changing and the inability of the leadership to get along and solve problems together hurt the company. Right after a merger is a critical time for a company with the HR department on full recovery mode. There has to be cohesion in order for the company to succeed and there was no unity. Leadership problems and industry factors had equal roles to play in the decline. 5. What, if any, factors should have been negotiated differently? The issue of who would lead the company should have been negotiated differently so that everyone will be represented. The management of the company played a role in the decline and I think if time was spent in making sure the people hired had the people skills needed to bring everyone together for the common good of the company, then there would not have been so much loss. Time should also have been spent in coming up with ways to bridge the culture gap and put everyone on the same page as to the goals of the present merged company. All in all, with a change in management, Alcatel-Lucent is still going strong and seems to have worked out the cross cultural issues. There are presently talks of them merging with Nokia Solutions. We will see how it turns out.

College Students Trapped by Credit Card Debt :: Argumentative Persuasive Argument

College Students Trapped by Credit Card Debt My best friend from my childhood is a marketing agent’s dream. Constantly duped and deceived by flashy ads and predatory marketing, this kid will buy anything - usuall on credit. At last check, my friend had maxed out 4 credit cards to the tune of over $30,000. Very rarely did the money go for something necessary, like accommodation or food, but usually was spent on a multitude of gadgets, toys, and other assorted ‘guy-stuff.’ CDs, a subwoofer, X-boxes and PlayStations, new rims and tires†¦he even whipped out the plastic to cover the $5,000 for his girlfriend’s new boobs! In my humble opinion, this was probably one of his wiser purchases, but still highlights the fact that my friend has a serious problem managing his finances. Unfortunately, my friend is not alone, but is one of thousands of unassuming college students trapped by credit card debt. Potential problems caused by lousy credit history can bite hard. They include: dropping out of college, physical and emotional health problems, family conflicts, bankruptcy, job rejections due to bad credit, loan denials, inability to rent apartments, graduate school rejections, and even suicide (Manning, 160). About 3 – 4 percent of college students suffer from serious credit problems (Manning, 160). While this number may seem small, that translates into 304 students just at HSU alone (4% of 7611 total students). College campuses make fertile feeding grounds for predatory marketing strategies. College is a time of self-discovery, when many students are enjoying their first real tastes of independence away from the home. For many, obtaining that first credit card is a natural step in establishing financial sovereignty. The fact of the matter however, is that college kids are also more prone to naivety with credit cards, which often hide the true costs of buy ing on credit. According to the Nellie Mae Corporation (a division of the federal Sallie Mae fund), over 95% of graduate students have credit cards, with the average student owing $4,776 in debt. 20% of those graduate students have debt between $6,000 and $15,000, and 6% have debt greater than $15,000.

Tips on Coping with Stress for College Students

I am sure the word ‘stress’ is a word that is very familiar to all of us – especially those who are studying foundation engineering. Stress is caused by the feeling of worry or pressure about a particular problem in life. For college students like us, stress or pressure is a result of high expectations that our family put on us. The pressure of competition among our friends too can cause to stress. No matter how you look at it, there is no way of escaping stress. Therefore, it is important that we find ways to cope with it to reduce the level of stress. The most important thing is to keep our body healthy. There are a number of things that we should do to ensure our health is always in good shape. Exercise is very important. It not only keeps our body healthy it also ensure our blood flows properly to the brain. Sitting and studying for hours without any movement can increase the level of stress. That is why it is advisable that you have half an hour break every two hours of your study time. It is during this break that you should do a few light exercises to keep your blood flowing. It is also advisable you go for walks, jogging or play sports to keep your mind healthy. Keeping the body healthy by merely doing exercise is not sufficient. It is also essential that we eat a balanced diet. Our body needs nutrition to produce energy to study. Besides, we must also ensure that we eat enough meals every day. Do not skip meals. A hungry stomach will only aggravate the situation and make us feel more stressed out. Hence for female college students, do not on diet in order to have a sexy body. You should always enjoy your foods Many college students cut down on their sleeping hours because they study late into the night. And the next day they have to wake up early. As a result, they come to college with a heavy head and headache. They force themselves to stay awake to concentrate in class, unfortunately they cannot. Therefore, study everyday, consistently in order to avoid last minute studying which will affect your health. The next important thing is to have a good study skill and technique. Join group discussions so that you can share ideas and thoughts among your friends. Learn how to study smart. Make notes and mind-map, these studying techniques will help you to study better. Have a check list to help you monitor the progress of your revision. If you have problem in certain subjects, you should spend more time on it. However, we tend to spend more time on our favorite subjects. As a result, this will affect your exam grade. Another way that can help us to cope with stress is by listening to some soothing music – something instrumental. According to the research, many have said that this type of music is helpful in lowering the stress level. I hope these tips will beneficial to all college students and wish you guys all the best in the foundation year.

Barclays plc Socially Responsible Corporate Behaviour Essay

Barclays plc: Socially Responsible Corporate Behaviour How does Barclays plc fulfil its obligations to their stakeholders in terms of ethical business practice and socially responsible corporate behaviour? According to The Institute of Business Ethics (cited in MORI, 2003), â€Å"80% of the public believe that large companies have a moral responsibility to society but 61% also thought large companies don’t care†. Why this shocking conclusion? Due to major accounting scandals such as Enron and WorldCom the public’s confidence in organisations have decreased. Why is there now an increasing demand for organisations to behave ethically and responsibly? Ethics is seen as ‘†¦ a system of morals or rules of behaviour’ (Mullins 1999)†¦show more content†¦Employees Managerial Non-managerial(cashiers) Economic, social and psychological satisfaction in the place of employment and adequate working conditions. Customers Personal account customers Premier accounts Small business customers The level of service provided, fair trading practices. Local community The local communities where their branches are situated. Provision of regular employment, company officials in community affairs. Each organisation is different and to find out who has the most power and influence many factors should be taken into account, such as the type and size of the industry and any outside pressure they face. Barclays are trying to satisfy their diverse stakeholders and have developed policies to deal with each accordingly. This organisation has realised that without exemplary employees their business would not flourish. Employees are individuals who work for an organisation and include both managerial and non-managerial staff. Barclays have recognised the importance of these two groups and know that one cannot function without the other so they have tried to appease them both. 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