Running Head: THE ALCATEL-LUCENT MERGER – WHAT WENT WRONG?
King Graduate School, Monroe College
MBA – Master in Business Administration Program
MG615 – Managing in the Global Environment
Case Study Analysis
Title : The Alcatel – Lucent Merger – What Went Wrong?
Instructor : Benjamin Menald
Student Name: Anderson L Henry
E-mail contact info: firstname.lastname@example.org
Table of Contents
The merger of communications equipment maker Alcatel of France and Lucent Technologies, a U.S telecommunications giant company, in 2006 provides us with a good example of some of the mistakes international managers must seek to avoid when negotiating mergers and joint ventures. This paper seeks to dissect key factors such as cross-cultural negotiations, leadership and managerial styles which were not appropriately addressed before the merger which lead to the subsequent poor performance of the newly formed company Alcatel-Lucent. Additionally, we will examine the changes which were made in an attempt to reverse the poor performance trend of the merged company Alcatel-Lucent and gauge whether they were successful and finally we will look at the current position of the merged company and examine its relevance and viability in today’s economy. It is our aim that through our analysis we are able to uncover alternative decisions which should have been considered and provide some advice on what we feel should have been done from the onset to ensure the smooth merger of the two corporations into a successful multinational corporation.
Deresky, H. (2011) states that “companies of all sizes go international for different reasons, some reactive (or defensive) and some proactive (or aggressive).” But what of the case of French communications equipment manufacturer Alcatel and that of US telecommunications giant...