Internal Analysis for Alcatel-Lucent Sample Essay

1. Identify firm’s resources and capablenesss
Key resources
Alcatel-Lucent pays a batch of attending to digesting and esteeming their employees and besides encourages this attitude between their employees. Assortment in civilizations is focused for bettering teamwork and end products. Furthermore. the house wants to accomplish a planetary position by accommodating this. Their focal point on diverseness improves employees’ motive and accomplishments. Personal and calling development. working environment. compensation and benefits Alcatel-Lucent besides emphasizes employee accomplishments and preparation by giving employees regular assignments. offering a individualized professional development program. and back uping a assortment of calling paths. The house has its ain Alcatel-Lucent University and e-learning portal. The positive working environment is demonstrated by a work/life balance including. for case. flexible working agreements. by multicultural profusion and by hi-tech communications. Alcatel-Lucent has a competitory compensation bundle in topographic point with a fillip program and long-run wage policy including stock options and portion purchase programs. These inducements enhance employee motive extremely. Mobility

Alcatel-Lucent offers mobility across boundary lines on a geographical. organisational or functional footing. This improves employee motive and accomplishments by opening chances for self-actualization. for case. Furthermore. it drives diverseness and teamwork. and besides expresses the firm’s international civilization. Technologies ( patents )

Invention has ever been one of the chief drivers of Alcatel Lucent. Indeed. as the fiscal wellness was traveling hazardous. the company kept on puting in Research and development. In 2011. 15. 2 % of the turnover were dedicated to R & A ; D and more than 2600 patents were obtained. From 2007 around 2 billion Euros were invested in R & A ; D each twelvemonth ( challenges magazine January 2013 ) . Furthermore. 7physics Nobel monetary values have been attributed to Alcatel scientists. which indicates the increasing public presentation of the company sing invention Valuess

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Alcatel has put a point of award to maintain on bettering its merchandises in order to supply the best solution to their clients. The chief values are respect. duty and invention. Alcatel and its employees are committed to supply the best of themselves in order to maximise client satisfaction and construct trust. Finance

In 2011. the net debt of the company is 31 million euro and it becomes 2. 7 billion euros in 2013. so there’s terrible job with the capital liquidness and hard currency flow. the company demand to take a expression at this and seek to better its fiscal state of affairs. Physical resources

The company has abundant resource of existent estate. It owns two types of sites: the production and assembly sites and research and invention site. The company measure the belongingss are in good status and run into the demands and demands of the Group’s current and future activity. Therefore. we can see the company has a strengthen with its big sum of subordinates and therefore lend to sufficient capacity at the minute.

R & A ; D: It seems like R & A ; D is a major capableness at A. L. This tradition of developing advanced merchandises goes back to the nineteenth century with the innovation of the Telephone by Bell. Since so. Bell Labs ( which are portion of AL ) have invented the transistor and have kept on coming up with inventions. Evidence of this can be seen with 2100 patents being deposited in 2009 entirely. Engineering: AL has shown strong capablenesss in technology. For case. 2 research workers at AL ( Boyle and Smith ) received a Nobel monetary value for their work on charge-coupled devices. This device is now used in digital cameras and uranology.

Invention: AL has been seen as a strongly advanced company. Evidence of this can be seen by their ranking in the MIT Technology Reviews’s 2012 Top 50 list of the “World’s Most Innovative Companies” . Global Gross saless and Selling: The company has merged the gross revenues and selling section to function clients with a consistent top quality service around the universe. This planetary vision to turn to this client needs has been a existent success narrative. Global Customer Delivery: The organisation has a existent expertness in client bringing thanks to the Global Customer Delivery Organization. This organisation is able to accommodate and react to customer’s outlooks based on a “Precision Delivery” vision. Mergers & A ; Acquisitions: AL has been successful with M & A ; A acquisitions in different companies. For case AL acquired in 2007 Net Devices. Tropic Networks. Thomson Advisory Group and Motive. Inc.

2. Linkages between resources and capablenesss
Within the capablenesss there are strong links between R & A ; D. invention and technology. Invention is so linked to the engineerings in footings or resources. R & A ; D is linked to fiscal resources as a big sum of capital is spent on that capableness. Personal and calling development. working environment and compensation have strong links to all capableness dimensions as those resources enable successful on the job consequences. Furthermore. diverseness links good to planetary gross revenues and planetary client bringing. Mobility besides enables the planetary facets of Alcatel-Lucent’s capablenesss. All in all. there are some strong linkages in the firm’s resources and capablenesss.

Develop Strategy Implications

Researching Key strengths: We identified that cardinal strengths are invention and R & A ; D. Possibly one thought would be to develop new. sophisticated. differentiated merchandises. These merchandises would therefore be harder to copy. Besides. they would supply higher value for clients. much like German companies such as Stilh. They should utilize their diverseness and mobility to cut their production costs. Indeed. much of their production workss are in states where cost of production is high. Hence. the company could relocate its production workss in states where cost of production is cheaper. The client committedness should be used to go on constructing a trueness among present clients.

Pull offing Cardinal failings: One of the strong identified failings is the outsize labour force. In order to go competitory one time more. the company should cut down the figure of staff and take the unprofitable countries of the company. It can be argued that although they have a rich. diversified portfolio. this has non enabled them to make profitableness. Therefore downsizing their portfolio and staff would enable them to concentrate on profitable countries.

Otiose strengths: The company appears to hold many sorts of applications and merchandises in different countries ( Mobile. radio. hardware. etc ) . This is a strength nevertheless has possibly non been used to its full capacity. A good scheme would be to roll up together the merchandises and portfolios such as to do them interconnected and sell them as bundles. Besides. the company is planetary but appears to be focused chiefly on the US. A good scheme would to set more weight in its attempts in other countries such as the Asia Pacific part.