Lucent Technologies
Splitting with communication giant AT&T in 1996 Lucent knew only of success in its beginning years. However, failure to focus on its future aspects such as cutting edge technology has put this company in a hole from which it has yet to dig itself out of. With other companies such as Nortel Networks Corporation beginning to dominate the optical fiber telephone switches market, changes had to be made at Lucent. A critical error occurred when Lucent presumed that its customers only desired switches that operated at the minimum of industry standards. With other companies such as Nortel staying ahead of the curve with cutting edge faster switches, Lucent lost its dominant share of the market.Lucent has seen its former organizational layout lead down a path of miscommunication and loss of profits. With these issues staring them in the face, Lucent had no c
New managers were brought in to replace its horizontal structure with a more vertically focused organization. Lucent also has plans to lay off more people in the future. They are bettering themselves with eliminating some operating expenses and its innovation through new products. This type of intrapreneurship is essential to stay ahead of the curve in today's competitive market. They must have long term goals to improving sales, not short term plan to keep the company temporarily afloat. Its impossible to allow employees more say in your company if you lay them all off. This organization has decided that with declining profits and market share, it needs to become more employee and consumer focused. Jeong Kim was selected as the new head of optical networks to improve performance. Even though Lucent has decided to focus more on employee needs, 5000 more people will be laid off in order to further lower operating expenses. We as a group believe that while Lucent aims at creating bridges between management and its workers, the amount of jobs it is terminating is counter productive. The overall strategy to these changes was to improve sales and cut costs. Cutting costs is only a short-term solution to its current money problems. In a company that says its now employee driven, every job that is laid off is another opportunity for innovation gone. This organization has the right idea of focusing on its employees and is on the right track with ideas such as intrapreneurship to boost profits with innovation. Perhaps Lucent needs to look more at its competitors than its balance sheet.
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