After reviewing the case of Lucent Technologies, we discover that the assets for Lucent Technologies suffered a decline between 2003 and 2004. According to the information provided in the case revealing, the current assets in 2003 was 49.4% of Lucent Technologies total assets, whereas the current assets in 2004 decreased to 48.5%. Although, after reviewing the case the percentage of inventory rose from 4.0% in 2003 to 4.8% in 2004. We can then calculate there is about a 20% increase in the total inventory holdings. Also it is apparent that Lucent Technologies entire assets in 2003 was 24% and had a decrease in 2004 to about 20%. This can be measured by the company's cash equivalents and cash.…
Ernst & Young (1994), Mergers and Acquisitions, John Wiley & Sons, New York, NY, pp. 234-9. Retrieved 2012-02-03…
Bibliography: * DePamphilis D. (2007), ‘‘Mergers, Acquisitions, and Other Restructuring Activities: An Integrated Approach to Process, Tools, Cases, and Solutions’’, fourth edition, Elsevier/Academic Press: San Diego.…
Evaluate the asset, debt, and equity structure of Lucent Technologies, as well as trends and changes found on the common-size balance sheet.…
Market competition is strong, with the market leader in the dominant position. The two companies are new and still establishing themselves, if both cannot adjust, merge and work together harmoniously, it may lead to the demise of both companies if this critical transition does not go smoothly.…
After reviewing the Case Review of Lucent Technologies, it was apparent the Lucent Technologies assets suffered a large decline between the years of 2003 and 2004. In 2003 the current assets consisted of 49.4% of their total assets while in 2004 the current asset percentage decreased to 48.5%. After a more close and thorough evaluation, it is apparent that the inventory did increase between the years 2003 and 2004. In 2003 the percentage of inventory was 4.0% and in 2004 the percentage was 4.8%. This can be calculated to be an increase of about 20% in their total inventory holdings. Another quick measure of the company’s cash and cash equivalents, it was clearly seen that their entire assets decreased by 24% in 2003 and almost 20% in 2004.…
Before 2002, WorldCom was one of the top telecommunication businesses in its industry because of many acquisitions obtained by the company. Due to the increased popularity of the internet and the acquirement of UUNet and MCI Communications, WorldCom share significantly increased. According to Moberg and Romar (as cited in Browning, 1997) "By 1997, WorldCom's stocks had risen from pennies per share to over $60 a share." WorldCom had become an attractive investment on Wall Street. However, the continual attainment of these business transactions created an overwhelming situation for WorldCom management (Moberg and Romar, 2003). The management at WorldCom poorly planned the financial integration of the additional companies which eventually led to the bankruptcy of the successful corporation.…
In December 2005, two years after this case was written, the telecommunications industry consolidated further. Verizon Communications acquired MCI/WorldCom and SBC Communications acquired AT&T Corporation, which had been in business since the 19th Century. The acquisition of MCI/WorldCom was the direct result of the behavior of WorldCom's senior managers as documented above. While it can be argued that the demise of AT&T Corp. was not wholly attributable to WorldCom's behavior, AT&T Corp.'s decimation certainly was facilitated by the events surrounding WorldCom, since WorldCom was the benchmark long distance telephone and Internet communications service provider. Indeed, the ripple effect of WorldCom's demise goes far beyond one company and several senior managers. It had a profound effect on an entire industry.…
Spain’s Telefonica had the chance to start expanding globally thanked to two significant changes in the economic and political environment: privatization and deregulation. Telefonica was a typical state-owned national telecommunication monopoly when being established and then, the Spanish government privatized it and deregulated the Spanish telecommunications market. It means that Telefonica from a state-owned company became privately controlled. Government also reduced rules to open telecommunications market for more competition. For these reasons, Telefonica had a sharp reduction in the workforce, rapid adoption of new technology and focused on profits and shareholder value and also started expanding globally for growth.…
BRL management decided to propose a merger. Following the merger, ex-BRL executives assumed the majority of top jobs in BRLH. These decisions within the top management caused some conflicts and indifference in the corporate…
1. What changes in the political and economic environment allowed Telefonica to start expanding globally?…
Mergers that are of a large scale may have been introduced in order to occupy a large share of the market, whereas acquisitions may have been formed in order to eliminate the competition. The mobile phone group of the recent merge between t mobile UK and orange UK could be potentially the biggest value creating company of all time.…
The other person I e-mailed was Grant Leum. I knew Brock Leum’s uncle was an engineer, but I didn’t realize was that Grant owns his own business. Leum Engineering makes ramps, risers, rail boards and engineered dock products. I also went online to an online discussion site and found some very interesting reviews from Jeff and Christopher on Cappex.…
Vodopia Caitlin Chapter 10 Closing Case 1. Tycos multibusiness model has changed a lot over time. At first, the strategy was diversification. Tyco acquired businesses in other industries to become the dominant competitor in these new industries. Then, Tyco decided to target low-tech products that commanded a large market share but had underperformed their competitors. Tyco would acquire these businesses if it passed an audit, and would transform them into profitable business units under the Tyco name. But as time passed, this business model started failing, and even though the company was growing, profitability was falling. To turn the business around, a new CEO started restructuring the company. Tyco formed three separate companies each given the freedom to pursue the strategy it felt would be most successful for its specific industry. This gave Tyco International, Tyco Electronics, and Covidien the opportunity to focus on its core business and rebuild its distinctive competencies. Today, 2. Tyco International is the largest player in a highly fragmented group of smaller competitors. Although this gives the firm control of costs, Tyco International faced a net loss of over a billion dollars in 2009. http://www.wikinvest.com/stock/Tyco_International_%28TYC%29 Tyco Electronics is pursuing a 50:50 merger with Indian company Raychem RPG Ltd. (RRL). Tyco is going to integrate its energy business into RRL, and this will allow RRL to diversify its product offerings and should propel them into the continuous growth and profitability they have been having in the Indian market. http://www.thehindu.com/business/Industry/article801174.ece Covidien operates in three business segments: medical devices, pharmaceuticals and medical supplies. In the third quarter of 2010, Covidien posted 2 percent increase in net sales and net income of $364 million.…
WorldCom, formerly known as the second largest long distance phone service, had taken its fall and officially took its final name on April 14, 2003. This Company’s mission statement was to “Create a competitive advantage for WorldCom and contribute significantly to WorldCom's business success by promoting business practices that provide greater opportunity for a diverse supplier base." Throughout WorldCom’s lively years, it had great growth through the buying out of other telecommunication companies, such as MCI Communications, Tier 1 ISP UUNET, and had a major part of the internet backbone. On November 10, 1997, this powerful company announced their 37 billion dollar merger, making it the largest in US history. WorldCom had almost become the nation’s top telecommunications provider if the Sprint merger had gone through. This merger couldn’t go through because of the concerns the US Department of Justice had about the possible future monopoly.…