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 didn’t change work
processes.
Lucent’s structure was cumbersome, and its financial
control system was woefully inadequate that’s 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 didn’t have the capability to get its products to
market fast enough
Innovator’s 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.
