Business Case Study - Lucent Technologies
Lucent Technologies is a global leader in communications and software
development. This report briefly overlooks its evolution, its
achievements since its inception and its mission and targets. Born as
a result of a spin-off of a unit of AT&T and relying on Bell
Laboratories for its innovations, Lucent has expanded and grown at a
tremendous rate in a very short time.
Lucent Technologies Inc. was formed in November 1995, combining units
of AT&T with that of Bell Labs. Lucent develops and manufactures
communications systems, software and products. Lucent sells public and
private communications systems, supplying systems and software to most
of the world's largest communications network operators and service
providers. It also deals in microelectronic components for
communications applications. Bell Laboratories conducts Lucent's
research and development.
In 1869 Elisha Gray and Enos Barton formed Gray & Barton in Cleveland,
Ohio. In 1881, it was acquired by American Bell and Western Electric
and it became the production part of all Bell Telephone companies.
AT&T bought American Bell in 1899. In 1925, AT&T and Western Electric
engineering departments created Bell Labs, which had been combined in
In February 1996, the systems and technology unit of AT&T renamed
itself Lucent Technologies and initiated its separation with an
initial public offering of stock issued in April 1996. The spin-off
was completed in September 1996 when AT&T distributed its shares of
Lucent to AT&T shareholders.
"Lucent is a New York Stock Exchange stock. Lucent pays a dividend.
Lucent is a leader in an increasingly important sector of the economy
- telecommunications equipment. The only fly in the ointment is that
Lucent is a relatively young company in its present form. However,
remember that the company's origins go back a long way as Lucent was
formerly the Bell Labs unit of AT&T."1
Lucent provides complete services including software that equips
service providers to extend wire line and wireless access, local, long
distance and international voice, data and video and cable services.
The SPN segment includes the product groups responsible for Lucent's
optical networking, switching solutions, access, wireless networks and
software products businesses. It also includes the businesses that are
focused on the needs of cable television operators, and data
networking systems for service providers, as well as the sales and
support organizations responsible for offers, sales, distribution,
installation and maintenance for service provider customers worldwide.
"Lucent's systems connect, route, manage and store voice, data and
video in any combination, and are used for wire...