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Out of touch at lucent

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Abhimanyu Singh
Abhimanyu Singh

Lucent was established in 1996 through the demerger of AT&T's business units. Its stock price soared in the late 1990s, rising from $7.56 per share to a high of $84 per share. However, Lucent struggled to develop new products on time, missed market opportunities, and had an inefficient organizational structure and financial controls. This, along with unrealistic growth projections and overspending on acquisitions, led to declining revenue, profit, and increasing debt, forcing Lucent to sell off business segments cheaply.

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PRESENTED BY- PRAGYA SINGH RASHMI PANDEY SWATI DAROLIA SPARSH DIMRI SHILPI SRIVASTVA POOJA RATHORE SHALENDRA MUKHARIYA
Established on September 30, 1996 through the demerger of the former AT&Technologies business unit of AT&TCorporation, which included Western Electric and Bell Labs. Its stocks were widely held, and soared. Lucent became a "attractive" stock of the investment community in the late 1990s, rising from a split-adjusted spinoff price of $7.56/share to a high $84.
Increased patient access to highly trained specialists, advanced research, and outreach to more HMO (Health Maintenance Organization) patients. Improvement in leverage as there would be managed care plans. Unforeseen incompatibilities can always occur. No matter how carefully the process is planned, and how much information is taken into consideration, there are always some eventualities that can occur. These often do not become apparent until well into the implementation process.
Internal change which occurs within the organization. External change which originates outside the organization. Strategic change can take a number of forms. In developing a strategy an organization identifies its long-term aims and objectives and then develops a strategy (which is really just a system for managing long-term risks) for achieving these objectives.
In a manufacturing company operational change can affect any aspect of the production system plus any operational support functions. Planned change is optional, but imposed change is not. Most organizations experience a combination of planned and imposed change. It may also possible that there would be not so successful couplings, for instant - the merger between UCSF and Stanford research hospitals (SF Chronicle, 5/21/99) resulted in a loss of $11 million in the fourth quarter of 1998, and was expected to lose $60 million by the end of 1999.
McGinn failed to confront nonperforming executives or replace them with people able to act as decisively Lucent consistently fell short of technical milestones for new product development, and it missed the best emerging market opportunities and the large amount of money was wasted because the company didnt change work processes. Lucents structure was cumbersome, and its financial control system was woefully inadequate thats why executives could not get information about the profit by the consumer, product line or channel so they had no way of making good decision about where to allocate resources.
Lucent didnt have the capability to get its products to market fast enough Innovators dilemma Pressure to meet unrealistic growth projections and extraordinary amounts of financing, credit, and discounts to customers, which had a very good looking balance sheet with 20 % growth but nothing was going right for them and the company amassed a huge amount of debt, largely from financing its acquisition binge that put it near bankruptcy. Decreasing revenue and profit forced Lucent to sell business at fire sell prices.

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Out of touch at lucent

  • 1. PRESENTED BY- PRAGYA SINGH RASHMI PANDEY SWATI DAROLIA SPARSH DIMRI SHILPI SRIVASTVA POOJA RATHORE SHALENDRA MUKHARIYA
  • 2. Established on September 30, 1996 through the demerger of the former AT&Technologies business unit of AT&TCorporation, which included Western Electric and Bell Labs. Its stocks were widely held, and soared. Lucent became a "attractive" stock of the investment community in the late 1990s, rising from a split-adjusted spinoff price of $7.56/share to a high $84.
  • 3. Increased patient access to highly trained specialists, advanced research, and outreach to more HMO (Health Maintenance Organization) patients. Improvement in leverage as there would be managed care plans. Unforeseen incompatibilities can always occur. No matter how carefully the process is planned, and how much information is taken into consideration, there are always some eventualities that can occur. These often do not become apparent until well into the implementation process.
  • 4. Internal change which occurs within the organization. External change which originates outside the organization. Strategic change can take a number of forms. In developing a strategy an organization identifies its long-term aims and objectives and then develops a strategy (which is really just a system for managing long-term risks) for achieving these objectives.
  • 5. In a manufacturing company operational change can affect any aspect of the production system plus any operational support functions. Planned change is optional, but imposed change is not. Most organizations experience a combination of planned and imposed change. It may also possible that there would be not so successful couplings, for instant - the merger between UCSF and Stanford research hospitals (SF Chronicle, 5/21/99) resulted in a loss of $11 million in the fourth quarter of 1998, and was expected to lose $60 million by the end of 1999.
  • 6. McGinn failed to confront nonperforming executives or replace them with people able to act as decisively Lucent consistently fell short of technical milestones for new product development, and it missed the best emerging market opportunities and the large amount of money was wasted because the company didnt change work processes. Lucents structure was cumbersome, and its financial control system was woefully inadequate thats why executives could not get information about the profit by the consumer, product line or channel so they had no way of making good decision about where to allocate resources.
  • 7. Lucent didnt have the capability to get its products to market fast enough Innovators dilemma Pressure to meet unrealistic growth projections and extraordinary amounts of financing, credit, and discounts to customers, which had a very good looking balance sheet with 20 % growth but nothing was going right for them and the company amassed a huge amount of debt, largely from financing its acquisition binge that put it near bankruptcy. Decreasing revenue and profit forced Lucent to sell business at fire sell prices.