Alcatel-Lucent merger Coursework Example | Topics and Well Written Essays - 1000 words

Alcatel-Lucent coalition - Coursework ExampleLucent feared Alcatels takeover and thus the take away came to a halt on May 29, 2001. It is still non discovered that which company begin the negotiations but Lucent ended them on the basis that Alcatel was not agreeing on equals. Looking into the case, I believe may be the negotiations styles were not accurate for the scenario. harmonise to Anatomy of a merger by James C. Freund, in that respect are two ways of negotiating which let you go no where. One is doing what comes naturally to your mind, not thinking about the other party and doing and saying lone(prenominal) what you want. Credibility and sincerity should be prominent in your negotiations and this style of doing what naturally comes to your mind is the worst style of negotiating. The second style is practice what I preach. You should not just read books for the sake of reading them. Practicing all negotiation styles in your merger is important. In 2006, the companies deci ded to merge again. Co operations begin to have up between the two companies. According to Paris and Murray Hill, N.J., April 2, 2006- Alacatel and Lucent Technologies announced that they are together as an ultimate merger now which is unbreakable. They are creating a genuinely global communications key provider for the entire world with the widest wire line, wireless and services collection in the market. The major reason of this merger is to increase revenues and profits based on market chances for the next-generation services, applications, and networks. The joint companys scope, scale and global competencies will improve the long term honour for customers, shareowners and employees. The contract, which was endorsed by the get on withs of directors of each company, will build upon the corresponding strengths of every company to generate a global market leader in the alteration of coming(prenominal) wireless, wire line and congregated networks. The shareholders in France accep ted the merger in September 2006. The CEO of Alcatel invested 10.6 billion euro ($13.5 billion then) into the business at that time and remarked that Alcatel- Lucent has no equivalent today or in future. The combined sales of the company mounted to $25 billion in that year and it was believed that Alcatel-Lucent will be the biggest merger of communications in the world with its ongoing success. But mergers arent easy to handle Conflict of interest, different cultural backgrounds and different attitudes towards work were the causes of exit between the chief executives of both companies. Things start to take a pessimistic turn. Patricia F. Russo (chief executive of Lucent) also believed that things would start to work better for the both companies but they did not. counterbalance though the regulatory hurdles were cleared in both U.S and European markets by the U.S State department and EU regulations but things didnt take a positive turn. Both the CEOs tried hard to cooperate with e ach other but was restricted by their French and American styles. According to an analyst, the corporate culture of Lucents clashed with Alcatels business model. In July 2008, Lucents CEO Patricia F. Russo resigned. She claimed that she could not get along with Serge Tchuruk, her fellow board member. He too resigned after some time. Both of the CEOs were not able to get along with each other. Even though the company official language was proposed to be English, Patricia spoke French as well to be conversant in the