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137-588: Lucent Technologies, Inc. was an American multinational telecommunications equipment company headquartered in Murray Hill , New Jersey . It was established on September 30, 1996, through the divestiture of the former AT&T Technologies business unit of AT&T Corporation , which included Western Electric and Bell Labs . Lucent was acquired by Alcatel SA on December 1, 2006, forming Alcatel-Lucent . Lucent means "light-bearing" in Latin . The name

274-511: A Bachelor of Arts in philosophy and medieval history at Stanford University , in 1976. During her summers, she worked as a secretary for Kelly Services . She attended the UCLA School of Law in 1976, but dropped out after one semester. She worked as a receptionist for six months at a real estate firm, Marcus & Millichap , moving up to a broker position. When she married in 1977, she and her husband moved to Bologna , Italy , where he

411-461: A "highly symbolic decision" that was well-received as a return to innovation by HP. Steven Levy , writing in 2015 on the agreement, wrote that "Steve Jobs blithely mugged her and HP's shareholders. By getting Fiorina to adopt the iPod as HP's music player, Jobs had effectively gotten his [iTunes] software installed on millions of computers for free, stifled his main competitor, and gotten a company that prided itself on invention to declare that Apple

548-464: A $ 125 million accounting error for the third quarter of 2000, and by December 2000 it reported it had overstated its revenues for its latest quarter by nearly $ 700 million. Although no wrongdoing was found on his part, McGinn was forced to resign as CEO and he was replaced by Schacht on an interim basis. Subsequently, its CFO, Deborah Hopkins, left the company in May 2001 with Lucent's stock at $ 9.06 whereas at

685-766: A basis in a national ethos , being ultimate without a specific nationhood, and that this lack of an ethos appears in their ways of operating as they enter into contracts with countries that have low human rights or environmental standards . In the world economy facilitated by multinational corporations, capital will increasingly be able to play workers, communities, and nations off against one another as they demand tax, regulation and wage concessions while threatening to move. In other words, increased mobility of multinational corporations benefits capital while workers and communities lose. Some negative outcomes generated by multinational corporations include increased inequality , unemployment , and wage stagnation . Raymond Vernon presents

822-453: A big drop in profits. That caused the stock to plunge by 28%, shaving $ 64 billion off of the company's market capitalization. When it was later revealed that it had used dubious accounting and sales practices to generate some of its earlier quarterly numbers, Lucent fell from grace. It was said that "Rich McGinn couldn't accept Lucent's fall from its early triumphs." He described himself once as imposing "audacious" goals on his managers, believing

959-666: A charity that has donated to causes including Care-a-Van for Kids, a transportation program to aid seriously ill children, and the African Leadership Academy , an educational institution in South Africa. The foundation 'enables corporations, spokeswomen entrepreneurs and philanthropists alike to address some of the world's most challenging issues,' according to Fiorina's Web site, carlyfiorina.com." The San Francisco Chronicle reported that "Records also show that her Fiorina Foundation has never registered with

1096-508: A corporation invests in a country in which it is not domiciled, it is called foreign direct investment (FDI). Countries may place restrictions on direct investment; for example, China has historically required partnerships with local firms or special approval for certain types of investments by foreigners, although some of these restrictions were eased in 2019. Similarly, the United States Committee on Foreign Investment in

1233-429: A free market system where there is little government interference. As a result, international wealth is maximized with free exchange of goods and services. To many economic liberals, multinational corporations are the vanguard of the liberal order. They are the embodiment par excellence of the liberal ideal of an interdependent world economy. They have taken the integration of national economies beyond trade and money to

1370-470: A key role in planning and implementing the 1996 initial public offering of a successful stock and company launch strategy. Under her guidance, the spin-off raised US$ 3 billion. Later in 1996, Fiorina was appointed president of Lucent's consumer products sector, reporting to president and chief operating officer Rich McGinn. In 1997, she was named group president for Lucent's US$ 19 billion global service-provider business, overseeing marketing and sales for

1507-422: A management trainee, selling telephone services to big federal agencies. In 1990, she became the company's first female officer as senior vice president overseeing the company's hardware and systems division, eventually heading its North American operations. In 1995, Fiorina led corporate operations for Lucent Technologies, Inc., a spin-off from AT&T of its Western Electric and Bell Labs divisions into

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1644-490: A million troops to help, and by February 1991, Iraqi forces were expelled from Kuwait. Due to the oil boycott from Kuwait and Iran, oil prices rose and quickly recovered. Saudi Arabia once again led OPEC, and thanks to assistance in defending Kuwait, new relations emerged between the USA and OPEC. Operation "Desert Storm" brought mutual dependence among the main oil producers. OPEC continued to influence global oil prices but recognized

1781-433: A new company. In that capacity, she reported to Lucent chief executive Henry B. Schacht . She played a key role in planning and implementing the 1996 initial public offering of a successful stock and company launch strategy. The spin-off became one of the most successful IPOs in U.S. history, raising US$ 3 billion. Later in 1996, Fiorina was appointed president of Lucent's consumer products sector. In 1997, she

1918-535: A partnership with Fiorina and OWI to provide financial resources, education and training to two million women living in poverty. Fiorina was referred to as Global Ambassador to Opportunity International. On May 4, 2015, Opportunity International announced that Fiorina was resigning from the Board after the announcement of her presidential candidacy. Fiorina is the chair and CEO of the Fiorina Foundation,

2055-441: A year later after it garnered only 2% market share in mobile phones. Losses were at $ 500 million on sales of $ 2.5 billion. As a result of the failed joint venture, Philips announced the closure of one-quarter of the company's 230 factories worldwide, and Lucent closed down its wireless handset portion of the venture. Analysts suggested that the joint venture's failure was due to a combination of technology and management problems. Upon

2192-562: Is also a character in Dante's epic poem Inferno . Shortly after the Lucent renaming in 1996, Lucent's Plan 9 project released a development of their work as the Inferno OS in 1997. This extended the 'Lucifer' and Dante references as a series of punning names for the components of Inferno - Dis , Limbo , Charon and Styx (9P Protocol) . When the rights to Inferno were sold in 2000,

2329-637: Is listed on the National Register of Historic Places . Carly was a Brownie but did not become a Girl Scout due to her family's frequent moves. She attended Channing School , in London. She later attended five different high schools, including one in Ghana , graduating from Charles E. Jordan High School in Durham, North Carolina . At one time she aspired to be a classical pianist . She received

2466-410: Is often handled through international arbitration . The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized international society. According to the economic realist view, individuals act in rational ways to maximize their self-interest and therefore, when individuals act rationally, markets are created and they function best in

2603-865: Is usually a large corporation incorporated in one country that produces or sells goods or services in various countries. Two common characteristics shared by MNCs are their large size and centrally controlled worldwide activities. MNCs may gain from their global presence in a variety of ways. First of all, MNCs can benefit from the economy of scale by spreading R&D expenditures and advertising costs over their global sales, pooling global purchasing power over suppliers, and utilizing their technological and managerial experience globally with minimal additional costs. Furthermore, MNCs can use their global presence to take advantage of underpriced labor services available in certain developing countries and gain access to special R&D capabilities residing in advanced foreign countries. The problem of moral and legal constraints upon

2740-569: The Forbes list of The World's 100 Most Powerful Women . In 2005, The Wall Street Journal described Fiorina as the epitome of "an alluring, controversial new breed of chief executive officers who combine grand visions with charismatic but self-centered and demanding styles". The same year, Wharton School professor Michael Useem opined, "Fiorina scored high on leadership style, but she failed to execute strategy". Following her forced resignation from HP, several commentators ranked Fiorina as one of

2877-743: The Columbus, Ohio facility without employees. In the prior year. the warehouse building had closed for consolidation of facilities and cost reduction. During its expansion in the late 1990s, Lucent commissioned several large office buildings. The architectural firm, Kevin Roche, John Dinkeloo, and Associates (KRJDA) designed five structures clad in energy-efficient, tinted, low-E glass. To meet customer and business needs, further locations were built and leased for Lucent, rather than built as corporate assets. At September, 1997 Lucent reported that future non-cancelable lease payments totaled $ 1,037 million. Many of

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3014-848: The Dutch East India Company (VOC) founded in 1602. In addition to carrying on trade between Great Britain and its colonies, the British East India Company became a quasi-government in its own right, with local government officials and its own army in India. Other examples include the Swedish Africa Company founded in 1649 and the Hudson's Bay Company founded in 1670. These early corporations engaged in international trade and exploration and set up trading posts. The Dutch government took over

3151-461: The Enso , turned 90 degrees and modified. Another source says it represents the mythic ouroboros , a snake holding its tail in its mouth. Lucent's logo also has been said to represent constant re-creating and re-thinking. Carly Fiorina picked the logo because her mother was a painter and she rejected the sterile geometric logos of most high tech companies. After the logo was compared in the media to

3288-580: The Fox Business Network as a business commentator. After resigning from HP, Fiorina served on the board of Revolution Health Group and computer security company Cybertrust in 2005. In 2006, she became a member of the board of directors for chip maker Taiwan Semiconductor Manufacturing Company (TSMC), but resigned from that board on November 30, 2009, with the company saying this was "because she planned to devote her full time and energy" to her Senate campaign. She had attended 17% of

3425-717: The United States Court of Appeals for the Ninth Circuit . Her mother was an abstract painter . She is mainly of English and German ancestry, and was raised Episcopalian. Her paternal great-great-great-grandfather, Joseph P. Sneed , was a Methodist minister and educator in Texas. Her paternal great-great-great-great-uncle built the Constantine Sneed House in Brentwood, Tennessee , which

3562-629: The United States Senate in California , but lost the general election to incumbent Democrat Barbara Boxer . Fiorina was a candidate in the 2016 Republican presidential primary , and was for seven days the vice-presidential running mate of Ted Cruz until he suspended his campaign . In 2020 , Fiorina endorsed the presidential campaign of Democrat Joe Biden . Cara Carleton Sneed was born on September 6, 1954, in Austin, Texas ,

3699-509: The Washington Beltway , where they were escorted by NSA security" to the agency's Fort Meade headquarters. In 2015, Fiorina said: "I felt it was my duty to help, and so we did," adding, "They were ramping up a whole set of programs and needed a lot of data crunching capability to try and monitor a whole set of threats. ... What I knew at the time was our nation had been attacked." Hayden also requested that Fiorina provide advice to

3836-546: The commencement address at Southern New Hampshire University . Fiorina is the chair and CEO of Carly Fiorina Enterprises, a business and charitable foundation. A spokesperson described Fiorina Enterprises as "...a nonprofit enterprise that helped Fiorina structure speaking engagements and appearances while providing the public with information about her activities..." The San Francisco Chronicle reported that, as of July 2009, she had "never registered her Carly Fiorina Enterprises to conduct business in California, either with

3973-595: The glass ceiling , she obliterated it, as the first woman to lead a FORTUNE 20 company." Writing in Fortune magazine in August 2015, Jeffrey Sonnenfeld described the hiring as the result of "a dysfunctional HP board committee, filled with its own poisoned politics, hired her with no CEO experience, nor interviews with the full board." Fiorina received a larger signing offer than any of her predecessors, including: US$ 65 million in restricted stock to compensate her for

4110-441: The lean manufacturing of products and excellence in work methods. In June 2002, Lucent announced closure of the manufacturing building by the end of the year, due to the telecommunication losses in operations. Of the remaining 530 employees at the facility. 170 were employee layoffs and the other 360 employees would mostly transfer to Lucent's Whippany, New Jersey location. The manufacturing of cell based systems would transfer to

4247-617: The 19th century, such as the Rio Tinto company founded in 1873, which started with the purchase of sulfur and copper mines from the Spanish government. Rio Tinto, now based in London and Melbourne , Australia, has made many acquisitions and expanded globally to mine aluminum , iron ore , copper , uranium , and diamonds . European mines in South Africa began opening in the late 19th century, producing gold and other minerals for

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4384-593: The 33rd largest charity in the United States. Good360 is "the largest product donation marketplace in the world. We help companies take excess inventory and then distribute that excess inventory to 37,000 vetted charities around this country." In September 2014, Fiorina led an effort by Good360 to get American corporations "to help combat the Ebola virus in West Africa – by donating specific items." She left

4521-468: The California secretary of state or the clerk of Santa Clara County, where Fiorina lives." In April 2012, Fiorina became chair of Good360 , a 501(c)(3) nonpartisan nonprofit organization in Alexandria, Virginia , which helps companies donate excess merchandise to charities. Good360 has been consistently ranked by Forbes magazine as one of the top 10 most efficient charities, and ranked as

4658-532: The Compaq merger as successful over the long term. In October 2006, Fiorina published an autobiography entitled Tough Choices , about her career and her views on issues, what constitutes a leader, how women can thrive in business, and the role technology will continue to play in reshaping the world. A review by NPR Books noted that "The book covers Fiorina's rise and fall as America's most powerful female executive." Earlier books by others about Fiorina's role in

4795-452: The EDS acquisition after Fiorina's tenure was evidence that her failed plan to acquire part of Pricewaterhouse Coopers was justified. Under the company's agreement with Fiorina, which was characterized as a golden parachute by Time magazine, and Yahoo! Finance , Fiorina received a severance package valued at US$ 21 million, which consisted of 2.5 times her annual salary plus bonus and

4932-551: The English language. Senior officials, although mostly still Swedish, all learned English and all major internal documents were in English, the lingua franca of multinational corporations. After the war, the number of businesses having at least one foreign country operation rose drastically from a few thousand to 78,411 in 2007. Meanwhile, 74% of parent companies are located in economically advanced countries. Developing and former communist countries such as China, India, and Brazil are

5069-602: The HP+iPod, Jobs announced a new product, the iPod mini , catching Fiorina off guard. HP did not sell the newer versions of the iPod in a timely fashion, leaving them to sell an outdated device for several months. In addition, Apple began selling its own iPods through the same retail channels. As a result, at the peak of the program, iPod+HP sales represented only a small portion of total iPod sales. In July 2005, soon after Fiorina resigned as CEO, her successor Mark Hurd ended HP's agreement with Apple, within days of taking office,

5206-509: The Hewlett-Packard board of directors discussed with Fiorina a list of issues that the board had regarding the company's performance and disappointing earning reports. The board proposed a plan to shift her authority to HP division heads, which Fiorina resisted strongly. A week after the meeting, the confidential plan was leaked to The Wall Street Journal . According to BusinessWeek' s Ben Elgin, directors were also concerned about

5343-528: The Internal Revenue Service or the state attorney general's charitable trust division, which tax-exempt charities are required to do. A spokeswoman commented that "Fiorina and her staff believed the foundation was not required to file with the IRS because it accepted no outside contributions and donated only her personal wealth to worthy causes." In 2017, Fiorina joined the board of trustees for

5480-575: The International Energy Agency (IEA), enabling states to coordinate policy, gather data, and monitor global oil reserves. In the 1970s, OPEC gradually nationalized the Seven Sisters. The Kingdom of Saudi Arabia, as the only largest world oil producer, could leverage this. However, Saudi Arabia opted for the correct approach and maintained consistent oil prices throughout the 1970s. In 1979, the "second oil shock" came from

5617-478: The Lucent stock and options she left behind, a US$ 3 million signing bonus, a US$ 1 million annual salary (plus a US$ 1.25– US$ 3.75 million annual bonus), US$ 36,000 in mortgage assistance, a relocation allowance, and permission (and encouragement) to use company planes for personal affairs. Fortune also named her the most powerful woman in America for five consecutive years. Although the decision to spin off

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5754-513: The NSA for expanded surveillance. Hayden confirmed that he had made the request for HP servers as part of Stellar Wind , a 2001–2007 NSA warrantless surveillance program , but the details were not revealed to Fiorina at the time. Fiorina "acknowledged she complied with Hayden's request, redirecting trucks of HP computer servers that were on their way to retail stores from a warehouse in Tennessee to

5891-511: The Netherlands has become a popular choice, as its company laws have fewer requirements for meetings, compensation, and audit committees, and Great Britain had advantages due to laws on withholding dividends and a double-taxation treaty with the United States. Corporations can legally engage in tax avoidance through their choice of jurisdiction but must be careful to avoid illegal tax evasion . Corporations that are broadly active across

6028-558: The OLI framework. The other theoretical dimension of the role of multinational corporations concerns the relationship between the globalization of economic engagement and the culture of national and local responses. This has a history of self-conscious cultural management going back at least to the 60s. For example: Ernest Dichter, architect, of Exxon's international campaign, writing in the Harvard Business Review in 1963,

6165-895: The TSMC directors' meetings in 2009 and 20% of TSMC directors' meetings in 2008. She served as a member of the MIT Corporation from 2004 to 2012. She was a member of the Foundation Board of the World Economic Forum (WEF) in 2005. She is an honorary fellow of the London Business School . In July 2012, Governor Bob McDonnell of Virginia appointed her to the James Madison University Board of Visitors. In 2015, Fiorina received an honorary degree and delivered

6302-464: The Third World colonies. That changed dramatically after 1945 as investors turned to industrialized countries and invested in manufacturing (especially high-tech electronics, chemicals, drugs, and vehicles) as well as trade. Sweden's leading manufacturing concern was SKF , a leading maker of bearings for machinery. In order to expand its international business, it decided in 1966 it needed to use

6439-636: The U.S. applies its corporate taxation "extraterritorially", which has motivated tax inversions to change the home state. By 2019, most OECD nations, with the notable exception of the U.S., had moved to territorial tax in which only revenue inside the border was taxed; however, these nations typically scrutinize foreign income with controlled foreign corporation (CFC) rules to avoid base erosion and profit shifting . In practice, even under an extraterritorial system, taxes may be deferred until remittance, with possible repatriation tax holidays , and subject to foreign tax credits . Countries generally cannot tax

6576-541: The United States sanctions against Iran ; European companies faced with the possibility of losing access to the U.S. market by trading with Iran. International investment agreements also facilitate direct investment between two countries, such as the North American Free Trade Agreement and most favored nation status. Raymond Vernon reported in 1977 that of the largest multinationals focused on manufacturing, 250 were headquartered in

6713-506: The United States scrutinizes foreign investments. In addition, corporations may be prohibited from various business transactions by international sanctions or domestic laws. For example, Chinese domestic corporations or citizens have limitations on their ability to make foreign investments outside China, in part to reduce capital outflow . Countries can impose extraterritorial sanctions on foreign corporations even for doing business with other foreign corporations, which occurred in 2019 with

6850-614: The United States as the largest consumer and guarantor of the existing oil security order. Since the Iraq War, OPEC has had only a minor influence on oil prices, but it has expanded to 11 members, accounting for about 40 percent of total global oil production, although this is a decline from nearly 50 percent in 1974. Oil has practically become a common commodity, leading to much more volatile prices. Most OPEC members are wealthy, and most remain dependent on oil revenues, which has serious consequences, such as when OPEC members were pressured by

6987-461: The United States from 2010. The USA became the leading oil producer, creating tension with OPEC. In 2014, Saudi Arabia increased production to push new American producers out of the market, leading to lower prices. OPEC then reduced production in 2016 to raise prices, further worsening relations with the United States. By 2012, only 7% of the world's known oil reserves were in countries that allowed private international companies free rein; 65% were in

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7124-629: The United States, 115 in Western Europe, 70 in Japan, and 20 in the rest of the world. The multinationals in banking numbered 20 headquartered in the United States, 13 in Europe, nine in Japan and three in Canada. Today multinationals can select from a variety of jurisdictions for various subsidiaries, but the ultimate parent company can select a single legal domicile ; The Economist suggests that

7261-766: The VOC in 1799, and during the 19th century, other governments increasingly took over private companies, most notably in British India. During the process of decolonization , the European colonial charter companies were disbanded, with the final colonial corporation, the Mozambique Company , dissolving in 1972. Mining of gold, silver, copper, and oil was a major activity early on and remains so today. International mining companies became prominent in Britain in

7398-507: The West to the post-colonial South and invest either in foreign expenditures or ostentatious economic development projects. After 1974, most of the money from OPEC members ceased as payments for goods and services or investments in Western industry. In February 1974, the first Washington Energy Conference was convened. The most significant contribution of this conference was the establishment of

7535-576: The acquisition as the personal computer market declined. Looking back, a 2011 The New York Times article described it as "one of the more questionable deals of the time." In 1997, prior to Fiorina's joining the company, HP's Dutch subsidiary formed a partnership with a company in Dubai, Redington Gulf, which sold HP's products in Iran . Under Fiorina's leadership at HP, the company sold millions of dollars worth of printers and computer products to Iran through

7672-510: The agency "on how the CIA could maintain its undercover espionage mission in a culture of increasing government leaks and demands for greater public accountability and openness." According to Fiorina, she advised the agency to be "as transparent as possible, about as much as possible". Fiorina's predecessor at HP had pushed for an outsider to replace him because he believed that the company had become complacent and that consensus-driven decision making

7809-508: The areas of telephone switching , optical, data and wireless networking. In 2004, the SEC charged Lucent with a $ 25 million fine for the company's lack of cooperation in their fraud case. On April 2, 2006, Lucent announced a merger agreement with Alcatel, which was 1.5 times the size of Lucent. Serge Tchuruk became non-executive chairman, and Russo served as CEO of the newly merged company, Alcatel-Lucent, until they were both forced to resign at

7946-477: The balance from accelerated vesting of stock options. According to Fortune magazine, Fiorina collected over US$ 100 million in compensation during her short tenure at HP. In 2003, Fiorina was named by Fortune Magazine the most powerful woman in business, a position she held for five years. In 2004, she was included in the Time 100 ranking of "most influential people in the world today" and named tenth on

8083-469: The behavior of multinational corporations, given that they are effectively "stateless" actors, is one of several urgent global socioeconomic problems that has emerged during the late twentieth century. Potentially, the best concept for analyzing society's governance limitations over modern corporations is the concept of "stateless corporations". Coined at least as early as 1991 in Business Week ,

8220-424: The biggest reduction in the company's 64-year history, but those cuts would not actually occur until after the Compaq merger was announced. In September 2001, Fiorina said she intended to cut an additional 15,000 jobs in the event of a merger with Compaq. In all, Fiorina laid off 30,000 U.S. employees. According to PolitiFact , those 30,000 layoffs were "as a result of the merger with Compaq...." By 2004

8357-480: The board's inability to work effectively with Fiorina. Less than a month later, the board brought back Tom Perkins and forced Fiorina to resign as chair and chief executive officer of the company. The company's stock jumped 6.9 percent on news of her departure, adding almost three billion dollars to the value of HP in a single day. In her book Tough Choices , she referred to board members' behavior as "amateurish and immature". Larry Sonsini , who investigated

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8494-538: The collapse of the dot-com bubble , the PwC consulting arm was acquired by IBM for less than US$ 4 billion. HP later acquired Electronic Data Systems , another technology services company, which some considered a validation of Fiorina's strategy. In early September 2001, in the wake of the bursting of the Tech Bubble , Fiorina announced the acquisition of PC maker Compaq with US$ 25 billion in stock, which, at

8631-742: The collapse of the Shah's regime in Iran. Iran became a regional power due to oil money and American weapons. The Shah eventually abdicated and fled the country. This prompted a strike by thousands of Iranian oil workers, significantly reducing oil production in Iran. Saudi Arabia tried to cope with the crisis by increasing production, but oil prices still soared, leading to the "second oil shock." Saudi Arabia significantly reduced oil production, losing most of its revenues. In 1986, Riyadh changed course, and oil production in Saudi Arabia sharply increased, flooding

8768-654: The companies. This occurred in 1960. Prior to the 1973 oil crisis , the Seven Sisters controlled around 85 percent of the world's petroleum reserves . In the 1970s, most countries with large reserves nationalized their reserves that had been owned by major oil companies. Since then, industry dominance has shifted to the OPEC cartel and state-owned oil and gas companies, such as Saudi Aramco , Gazprom (Russia), China National Petroleum Corporation , National Iranian Oil Company , PDVSA (Venezuela), Petrobras (Brazil), and Petronas (Malaysia). A unilateral increase in oil prices

8905-517: The company Vita Nuova Holdings was formed to represent them. This continues the Dante theme, although moving away from his Divine Comedy to the poem La Vita Nuova . The Lucent logo , the Innovation Ring, was designed by Landor Associates , a prominent San Francisco-based branding consultancy. One source inside Lucent says that the logo is a Zen Buddhist symbol for "eternal truth",

9042-469: The company had 84,800 employees. After the merger with Compaq, the company had a total of 145,000 employees worldwide. At the time of her resignation in 2005, after HP had acquired several other companies, HP had about 150,000 employees. HP's revenue doubled and the rate of patent filings increased due to mergers with Compaq and other companies during Fiorina's stint as CEO. In addition, HP's cash flow increased by 40%, to around $ 6.8 billion. However,

9179-695: The company underperformed by a number of other metrics: there were no gains in HP's net income despite a 70% gain in net income of the S&;P 500 over this period; the company's debt rose from US$ 4.25 billion to US$ 6.75 billion; and its stock price fell by 50%, exceeding declines in the S&;P 500 Information Technology Sector index and the NASDAQ . By contrast, stock prices for IBM and Dell fell by 27.5% and 3% respectively during this time. The Compaq acquisition

9316-450: The company was in a weakened position and unable to re-establish itself when the market recovered in 2003. By early 2003, Lucent's market value was $ 15.6 billion (which includes $ 6.8 billion of current value for two companies that Lucent had recently spun off, Avaya and Agere Systems), making the shares worth around $ 2.13, a far cry from its dotcom bubble peak of around $ 84, when Lucent was worth $ 258 billion. Lucent continued to be active in

9453-421: The company's analytical instruments division pre-dated her arrival, one of her first major responsibilities as chief executive was overseeing the separation of the unit into the stand-alone Agilent Technologies . Fiorina proposed the acquisition of the technology services arm of PricewaterhouseCoopers for almost US$ 14 billion, but withdrew the bid after a lackluster reception from Wall Street. Following

9590-402: The company's largest customer segment. That year, Fiorina chaired a US$ 2.5 billion joint venture between Lucent's consumer communications and Royal Philips Electronics , under the name Philips Consumer Communications (PCC). The focus of the venture was to bring both companies to the top three in technology, distribution, and brand recognition. Ultimately, the project struggled, and dissolved

9727-510: The conception was theoretically clarified in 1993: that an empirical strategy for defining a stateless corporation is with analytical tools at the intersection between demographic analysis and transportation research. This intersection is known as logistics management , and it describes the importance of rapidly increasing global mobility of resources. In a long history of analysis of multinational corporations, we are some quarter-century into an era of stateless corporations—corporations that meet

9864-643: The creation of a "world customer". The idea of a global corporate village entailed the management and reconstitution of parochial attachments to one's nation. It involved not a denial of the naturalness of national attachments, but an internationalization of the way a nation defines itself. "Multinational enterprise" (MNE) is the term used by international economist and similarly defined with the multinational corporation (MNC) as an enterprise that controls and manages production establishments, known as plants located in at least two countries. The multinational enterprise (MNE) will engage in foreign direct investment (FDI) as

10001-498: The culture at HP so that it could compete in the Internet Age. In January 2004, Fiorina announced an agreement with Apple founder Steve Jobs for the iPod+HP  – a co-branded iPod sold through HP's retail channels. As part of the agreement, HP was forbidden from selling a competitor to the iPod until August 2006 and HP agreed to pre-install iTunes on every computer sold. Two days before Fiorina announced

10138-487: The current largest and most influential companies are publicly traded multinational corporations, including Forbes Global 2000 companies. The history of multinational corporations began with the history of colonialism . The first multi-national corporations were founded to set up colonial "factories" or port cities. The two main examples were the British East India Company founded in 1600 and

10275-588: The daughter of Madelon Montross (née Juergens) and Joseph Tyree Sneed III . The name "Carleton", from which "Carly" is derived, has been used in every generation of the Sneed family since the Civil War . At the time of her birth, Fiorina's father was a professor at the University of Texas School of Law . He would later become dean of Duke University School of Law , Deputy U.S. Attorney General , and judge on

10412-514: The debate from a neo-liberal perspective in Storm over the Multinationals (1977). Carly Fiorina Cara Carleton " Carly " Fiorina ( / ˌ f iː ə ˈ r iː n ə / ; née   Sneed ; born September 6, 1954) is an American businesswoman and politician, known primarily for her tenure as chief executive officer (CEO) of Hewlett-Packard (HP) from 1999 to 2005. Fiorina

10549-405: The dicey debt got stashed on its balance sheet as an allegedly solid asset". Lucent's stock price grew 10-fold. In July 1999, Hewlett-Packard Company named Fiorina chief executive officer, succeeding Lewis Platt and prevailing over the internal candidate Ann Livermore . Matthew Boyle of Fortune magazine said of Fiorina's hiring as HP's first woman CEO that, "Carly Fiorina didn't just break

10686-467: The end of 2008. The merger failed to produce the expected synergies, and there were significant write-downs of Lucent's assets that Alcatel purchased. Lucent was divided into several core groups: The Murray Hill facility in New Providence, New Jersey was the global headquarters for Lucent Technologies. The building has the largest copper-clad roof in the world. There was a cricket field in

10823-440: The end of the joint venture, PCC sent 5,000 employees back to Philips, many of which were laid off, and 8,400 employees back to Lucent. Under Fiorina, the company added 22,000 jobs and revenues seemed to grow from US$ 19 billion to US$ 38 billion. However, the real cause of Lucent spurring sales under Fiorina was by lending money to their own customers. According to Fortune magazine, "In a neat bit of accounting magic, money from

10960-481: The firm makes direct investments in host country plants for equity ownership and managerial control to avoid some transaction costs . Sanjaya Lall in 1974 proposed a spectrum of scholarly analysis of multinational corporations, from the political right to the left. He put the business school how-to-do-it writers at the extreme right, followed by the liberal laissez-faire economists, and the neoliberals (they remain right of center but do allow for occasional mistakes of

11097-541: The following manufacturing locations were transferred to other subsidiaries during Lucent's existence, closed, or sold years later. These facilities were established by Western Electric before the 1983 Bell System break-up. AT&T operated and managed these locations from 1984 until 1996. After the AT&;T spin-off of Lucent, the telecommunications equipment being manufactured at these locations became products of Lucent Technologies. Multinational corporation Most of

11234-464: The following production metrics and lean manufacturing statistics: product-development cycle time reduced over 50%, material cost reduced 43%, cost of goods by 68%, assembly productivity increased close to 150%, assembly defects reduced by 80%, manufacturing inventory reduced 70%, and 100% on-time delivery. The facility introduced several self-managed work teams called PODs (Production On Demand) to assemble and test 50 Flexent Modcells daily. The location

11371-431: The foreign subsidiary, while U.S. export sanctions were in effect. After the story was initially reported by The Boston Globe in 2008, the SEC sent a letter of inquiry to HP, who responded that products worth US$ 120 million were sold in fiscal 2008 arguing that the sales did not violate export sanctions because they were made through a foreign subsidiary. According to former officials who worked on sanctions, HP

11508-404: The grounds. The Murray Hill anechoic chamber , built in 1940, is the world's oldest wedge-based anechoic chamber. The interior room measures approximately 30 feet (9.1 m) high by 28 feet (8.5 m) wide by 32 feet (9.8 m) deep. The exterior concrete and brick walls are about 3 feet (0.91 m) thick to keep outside noise from entering the chamber. The chamber absorbs over 99.995% of

11645-416: The hands of state-owned companies that operated in one country and sold oil to multinationals such as BP, Shell, ExxonMobil and Chevron. Down through the 1930s, about 80% of the international investments by multinational corporations were concentrated in the primary sector, especially mining (especially oil) and agriculture (rubber, tobacco, sugar, palm oil , coffee, cocoa, and tropical fruits). Most went to

11782-688: The incident acoustic energy above 200 Hz. At one time the Murray Hill chamber was cited in the Guinness Book of World Records as the world's quietest room. It is possible to hear the sounds of skeletal joints and heart beats very prominently. The Mount Olive Product Realization Center (MTO-PRC) facility in Mount Olive, New Jersey was part of the Wireless Networks Group business unit. The 252,000 square-feet building

11919-567: The industry's key growth businesses from 2003 onward, meant that Lucent no longer had the capacity to serve this market. Patricia Russo , formerly Lucent's EVP of the Corporate Office who then left for Eastman Kodak to serve as COO, was named permanent chairman and CEO of Lucent in 2002, succeeding Schacht who remained on the board of directors. Lucent was reduced to 30,500 employees, down from about 165,000 employees at its zenith. The layoffs of so many experienced employees meant that

12056-576: The international oil market. Iran was unable to sell any of its oil. In August 1953, the then-prime minister was overthrown by a pro-American dictatorship led by the Shah, and in October 1954, the Iranian industry was denationalized. Worldwide oil consumption increased rapidly between 1949 and 1970, a period known as the 'golden age of oil'. This increase in consumption was caused not only by the growth of production by multinational oil companies but also by

12193-415: The internationalization of production. For the first time in history, production, marketing, and investment are being organized on a global scale rather than in terms of isolated national economies. International business is also a specialist field of academic research. Economic theories of the multinational corporation include internalization theory and the eclectic paradigm . The latter is also known as

12330-527: The largest layoffs in HP's history), employee satisfaction surveys at HP – previously among the highest in America ;– revealed "widespread unhappiness" and distrust, and Fiorina was sometimes booed at company meetings and attacked on HP's electronic bulletin board . According to The Fiscal Times , Fiorina and others have argued that she "laid the groundwork for some of HP's progress under her successors", and that she shook

12467-460: The largest recipients. However, 70% of foreign direct investment went into developed countries in the form of stocks and cash flows. The rise in the number of multinational companies could be due to a stable political environment that encourages cooperation, advances in technology that enable management of faraway regions, and favorable organizational development that encourages business expansion into other countries. A multinational corporation (MNC)

12604-474: The laws and regulations of both their domicile and the additional jurisdictions where they are engaged in business. In some cases, the jurisdiction can help to avoid burdensome laws, but regulatory statutes often target the "enterprise" with statutory language around "control". As of 1992 , the United States and most OECD countries have the donot legal authority to tax a domiciled parent corporation on its worldwide revenue, including subsidiaries. As of 2019 ,

12741-425: The leak related to Fiorina's forced resignation, described the board in his report to Fiorina as being "dysfunctional." On May 13, 2008, HP, under then-Chief Executive Mark Hurd , confirmed that it had reached a deal to buy Electronic Data Systems , the largest since the Compaq purchase. The price was a reported $ 12.6 billion. At the time of the announcement, Loren Steffy of The Houston Chronicle suggested that

12878-558: The loans began to appear on Lucent's income statement as new revenue while the dicey debt got stashed on its balance sheet as an allegedly solid asset". Lucent's stock price grew 10-fold. In 1997, Lucent acquired Milpitas -based voicemail market leader Octel Communications Corporation for $ 1.8 billion, a move which immediately rendered the Business Systems Group profitable. The same year, Lucent acquired Livingston Enterprises Inc. for $ 650 million in stock. Livingston

13015-494: The market with cheap oil. This caused a worldwide drop in oil prices, hence the "third oil shock" or "counter-shock." However, this shock represented something much bigger—the end of OPEC's dominance and its control over oil prices. Iraqi President Saddam Hussein decided to attack Kuwait. The invasion sparked a crisis in the Middle East, prompting Saudi Arabia to request assistance from the United States. The United States sent

13152-543: The marketplace such as externalities). Moving to the left side of the line are nationalists, who prioritize national interests over corporate profits, then the "dependencia" school in Latin America that focuses on the evils of imperialism, and on the far left the Marxists. The range is so broad that scholarly consensus is hard to discern. Anti-corporate advocates criticize multinational corporations for being without

13289-653: The merged company's board of directors, while Alcatel chief executive officer Serge Tchuruk wanted 8 of the 14 board seats for Alcatel due to it being in a stronger position. The failure of the merger talks caused Lucent's share price to collapse, and by October 2002 the stock price had bottomed at 55 cents per share. In April 2000, Lucent sold its Consumer Products unit to VTech . In October 2000, Lucent spun off its Business Systems arm into Avaya , Inc., and in June 2002, it spun off its microelectronics division into Agere Systems . The spinoffs of enterprise networking and wireless,

13426-557: The merger at HP included: Backfire, (2003) by Peter Burrows, and Perfect Enough: Carly Fiorina and the Reinvention of Hewlett-Packard, (2003), by George Anders . A 2003 review by The New York Times of these books said, "Two new books about the deal and its main champion – Hewlett-Packard's chair and chief executive officer, Carly Fiorina – show that there is much investors can glean immediately from this merger." In October 2007, Fiorina signed with

13563-405: The number of HP employees was about the same as the pre-merger total of HP and Compaq combined, and that 2004 number included roughly 8,000 employees of other companies acquired by HP since 2001. Altogether, under Fiorina's leadership, HP had a net gain of employees, including employees from mergers as well as hires in countries outside the United States. In 1999, when Fiorina became CEO of HP,

13700-478: The number of employees exceeded the pre-merger figure and grew to 150,000 during her tenure. In February 2005, she was forced to resign as CEO and chair following a boardroom disagreement. She subsequently served as Chair of the philanthropic organization Good360 . Fiorina was an adviser to Republican Senator John McCain 's 2008 presidential campaign . In 2010 , she won the Republican nomination for

13837-804: The organization when she declared her presidential candidacy in 2015. Fiorina served as Fund Chair of One Woman Initiative (OWI), a partnership between the private sector and government agencies, including the United States Agency for International Development (USAID) and the United States Department of State (DoS). OWI describes itself as "An International Women's Empowerment Fund" that seeks to "support existing initiatives in Muslim majority countries and countries with large Muslim populations" and "focus on key empowerment issues including entrepreneurship, political leadership, and

13974-399: The parts of it that she kept with Compaq. The merger was met initially with almost universal skepticism. The February 7, 2005, issue of Fortune described her merger plan as "failing" and the prognosis as "doubtful". Business professor Robert Burgelman and former HP executive vice president, Webb McKinney, who led HP's post-merger integration team, analyzed the merger and concluded that it

14111-560: The price collapse in 1998–1999. The United States still maintains close relations with Saudi Arabia. In 2003, U.S. forces invaded Iraq with the aim of removing the dictatorship and gaining access to Iraqi oil reserves, giving the United States greater strategic importance from 2000 to 2008. During this period, there was a constant shortage of oil, but its consumption continued to rise, maintaining high prices and leading to concerns about "peak oil". From 2005 to 2012, there were advances in oil and gas extraction, leading to increased production in

14248-543: The range to fly overseas. One Gulfstream IV, acquired at a cost of US$ 30 million and available for Fiorina's "exclusive" use, became a rallying point among HP employees who complained of Fiorina's expensive self-promotion and top-down managerial style during a time of company layoffs. Jeffrey Sonnenfeld of Yale School of Management said in August 2015 that problems with Fiorina's leadership style were what caused HP to lose half its value during her tenure. Others have defended her business leadership decisions and viewed

14385-611: The realities of the needs of source materials on a worldwide basis and to produce and customize products for individual countries. One of the first multinational business organizations, the East India Company , was established in 1601. After the East India Company came the Dutch East India Company , founded on March 20, 1603, which would become the largest company in the world for nearly 200 years. The main characteristics of multinational companies are: When

14522-511: The rest of the telecom industry bubble collapsed. Previously Lucent had 14 straight quarters where it exceeded analysts' expectations, leading to high expectations for the 15th quarter, ending Dec. 31, 1999. On January 6, 2000, Lucent made the first of a string of announcements that it had missed its quarterly estimates, as CEO Rich McGinn grimly announced that Lucent had run into special problems during that quarter—including disruptions in its optical networking business—and reported flat revenues and

14659-452: The ring a coffee mug leaves on paper, a Dilbert comic strip showed Dogbert as an overpaid consultant designing a new company logo; he takes a piece of paper that his coffee cup was sitting on and calls it the "Brown Ring of Quality". A telecommunication commentator referred to the logo as "a big red zero" and predicted financial losses. One of the primary reasons AT&T Corporation chose to spin off its equipment manufacturing business

14796-551: The rule of law." OWI said it would raise funds in order to give grants to achieve these objectives, with contributions managed through a separate section 501(c)(3) designated organization. In June 2009, USAID announced that OWI grants totaling over US$ 500,000 had been made to grassroots organizations in Azerbaijan, Egypt, India, Pakistan, and the Philippines. On February 14, 2013, Opportunity International announced

14933-475: The stretch for performance would produce dream results. Henry Schacht defended the corporate culture that McGinn created and noted that McGinn did not sell any Lucent shares while serving as CEO. In June 2000, Lucent announced it would acquire Chromartis, an Israeli maker of optical network equipment, for $ 4.5 billion In November 2000, the company disclosed to the Securities and Exchange Commission that it had

15070-501: The strong influence of the United States on the global oil market. In 1959, companies lowered the price of oil due to a surplus in the market. This reduction dealt a significant blow to the finances of producers. Saudi oil minister Abdullah Tariki and Venezuela’s Juan Perez Alfonso entered into a secret agreement (the Mahdi Pact), promising that if the price of oil was lowered a second time, they would take collective action against

15207-659: The time she was hired it was at $ 46.82. In August 2001, Lucent shut down Chromartis. In 2000, Lucent received the Shingo Prize for Excellence in Manufacturing at the Mount Olive, New Jersey Product Realization Center. In 2001 there were merger discussions between Lucent and Alcatel , which would have seen Lucent acquired at its current market price without a premium; the newly combined entity would have been headquartered in Murray Hill. However, these negotiations collapsed when Schacht insisted on an equal 7–7 split of

15344-424: The time, was the second largest producer of personal computers, after Dell. HP stock traded down by 30% on the news of the merger. The Compaq merger created the world's largest personal computer manufacturer in terms of units shipped. Fiorina was frequently at odds with HP's board of directors, and she had to fight with the board for the merger. Walter Hewlett (the son of company co-founder William Hewlett )

15481-496: The world market, jobs for locals, and business and profits for companies. Cecil Rhodes (1853–1902) was one of the few businessmen in the era who became Prime Minister (of South Africa 1890–1896). His mining enterprises included the British South Africa Company and De Beers . The latter company practically controlled the global diamond market from its base in southern Africa. In 1945, the United States

15618-573: The world without a concentration in one area have been called stateless or "transnational" (although "transnational corporation" is also used synonymously with "multinational corporation" ), but as of 1992, a corporation must be legally domiciled in a particular country and engage in other countries through foreign direct investment and the creation of foreign subsidiaries. Geographic diversification can be measured across various domains, including ownership and control, workforce, sales, and regulation and taxation. Multinational corporations may be subject to

15755-503: The worldwide revenue of a foreign subsidiary, and taxation is complicated by transfer pricing arrangements with parent corporations. For small corporations, registering a foreign subsidiary can be expensive and complex, involving fees, signatures, and forms; a professional employer organization (PEO) is sometimes advertised as a cheaper and simpler alternative, but not all jurisdictions have laws accepting these types of arrangements. Disputes between corporations in different nations

15892-494: The worst American (or tech) CEOs of all time. In 2008, InfoWorld grouped her with a list of products and ideas that flopped, declaring that her tenure as CEO of HP was the sixth worst tech flop of all time, and characterizing her as the "anti- Steve Jobs " for reversing the goodwill of "geeks" and alienating existing customers. During Fiorina's tenure as CEO, HP leased or purchased five planes, including two Gulfstream IVs , to replace four aging aircraft, only one of which had

16029-581: Was a manufacturing location with the business unit under one roof. This allowed, the development, design, business functions for manufacturing cellular phone parts and between 1996 and 1999, the production of first generation CDMA ( Code-division multiple access ) minicells needed for cellular phone carriers. A 1,015-lb second generation Flexent Modcell cabinet was introduced in October 1999 for production as PCS (1.9 gigahertz) and TDMA (time-division multiple access) cellular (850 MHz) versions. From 1996 to 1999, PRC achieved and reduced with this new facility

16166-577: Was a source of particularly strong opposition. Hewlett originally voted with the other board members to approve the Compaq deal, but he later changed his mind. He launched a proxy fight against Fiorina's efforts which Fiorina won with a "razor-thin margin" of 51.4% of the shareholders, with the institutional shareholders providing the bulk of the support. Fiorina was supported in the proxy battle by other board members, including Richard Hackborn, Philip M. Condit , George A. Keyworth, II , and Robert Knowling. Fiorina proceeded to reorganize HP and merge

16303-468: Was a superior inventor. And he lost nothing ..." In January 2001, HP laid off 1,700 marketing employees. In June 2001, Fiorina asked employees to either take pay cuts or use their allotted vacation time to cut additional costs, resulting in more than 80,000 people signing up and saving HP US$ 130 million. Despite these efforts from employees, in July Fiorina announced that 6,000 jobs would be cut,

16440-546: Was also active in research and development of CDMA minicells for future global market growth and third generation W-CDMA (Wideband Code-Division Multiple Access) innovation. Expansion was evident with minicell lines for the South America market with cross-training technicians from Brazil on the product and the W-CDMA product for Japan's cellular carrier, NTT DoCoMo . The facility was awarded various awards and prizes for

16577-491: Was applied for in 1996 at the time of the split from AT&T. The name was widely criticised, as the logo was to be, both internally and externally. Corporate communications and business cards included the strapline 'Bell Labs Innovations' in a bid to retain the prestige of the internationally famous research lab, within a new business under an as-yet unknown name. This same linguistic root also gives Lucifer , "the light bearer" (from lux, 'light', and ferre, 'to bear'), who

16714-553: Was constructed for AT&T Corp. in 1994. The two leased buildings were located at the International Trade Center (New Jersey) and one building was used for warehousing and the other used for wireless products manufacturing since 1995. An additionally built wireless products manufacturing, PRC, was located in Piscataway, New Jersey also independently of AT&T creation. This system integration plant

16851-619: Was doing graduate work; there she did English tutoring to Italian businessmen. In 1980, Fiorina received a Master of Business Administration , in marketing, from the Robert H. Smith School of Business at the University of Maryland, College Park . In 1989 she obtained a Master of Science degree in management from the MIT Sloan School of Management , under the Sloan Fellows program. In 1980, Fiorina joined AT&T as

16988-438: Was enabled by multinational corporations known as the 'Seven Sisters'. The "Seven Sisters" was a common term for the seven multinational companies that dominated the global petroleum industry from the mid-1940s to the mid-1970s. The nationalization of the Iranian oil industry in 1951 by Iranian Prime Minister Mohammad Mosaddegh and the subsequent boycott of Iranian oil by all companies had dramatic consequences for Iran and

17125-448: Was fully aware that the means to overcoming cultural resistance depended on an "understanding" of the countries in which a corporation operated. He observed that companies with "foresight to capitalize on international opportunities" must recognize that " cultural anthropology will be an important tool for competitive marketing". However, the projected outcome of this was not the assimilation of international firms into national cultures, but

17262-617: Was inhibiting the company's growth. Fiorina instituted three major changes shortly after her arrival: replacing profit sharing with bonuses awarded if the company met financial expectations, a reduction in operating units from 83 to 12, and consolidating back-office functions. Fiorina faced a backlash among HP employees and the tech community for her leading role in the demise of HP's egalitarian " The HP Way " work culture and guiding philosophy, which she felt hindered innovation. Because of changes to HP's culture, and requests for voluntary pay cuts to prevent layoffs (subsequently followed by

17399-607: Was known most for the creation of the RADIUS protocol and their PortMaster product that was used widely by dial-up internet service providers. In 1999, Lucent acquired Ascend Communications , an Alameda, California –based manufacturer of communications equipment for US$ 20 billion. Lucent held discussions to acquire Juniper Networks but decided instead to buy Nexabit Networks. At the start of 2000, Lucent's "private bubble" burst, while competitors like Nortel Networks and Alcatel were still going strong; it would be many months before

17536-546: Was labeled as "the largest nonviolent transfer of wealth in human history." The OPEC sought immediate discussions regarding participation in national oil industries. Companies were not inclined to object as the price hike benefited both them and OPEC members. In 1980, the Seven Sisters were entirely displaced and replaced by national oil companies (NOCs). The rise in oil prices burdened developing countries with balance of payments deficits, leading to an energy crisis. OPEC members had to abandon their plan of redistributing wealth from

17673-517: Was named "The Most Powerful Woman in American Business". Lucent added 22,000 jobs and revenues grew from US$ 19 billion to US$ 38 billion and the company's market share increased in every region for every product. According to Fortune magazine, Lucent increased sales by lending money to their own customers, writing that "In a neat bit of accounting magic, money from the loans began to appear on Lucent's income statement as new revenue while

17810-426: Was named group president for Lucent's US$ 19 billion global service-provider business, overseeing marketing and sales for the company's largest customer segment. That year, Fiorina chaired a US$ 2.5 billion joint venture between Lucent's consumer communications and Royal Philips Electronics , under the name Philips Consumer Communications (PCC). In the edition of October 12, 1998, of Fortune magazine, Fiorina

17947-484: Was not as transformative as Fiorina and the board had envisioned: in the merger proxy, they had forecasted that the PC division of the merged entities would generate an operating margin of 3.0% in 2003, while the actual figure was 0.1% in that year and 0.9% in 2004. In 2004, HP fell dramatically short of its predicted third-quarter earnings, and Fiorina fired three executives during a 5 AM telephone call. In early January 2005,

18084-549: Was serving as president and COO, succeeded Schacht as CEO in 1997 while Schacht remained chairman of the board. Lucent became a "darling" stock of the investment community in the late 1990s, and its split-adjusted spinoff price of $ 7.56/share rose to a high of $ 84. Its market capitalization reached a high of $ 258 billion, and it was at the time the most widely held company with 5.3 million shareholders. In 1995, Carly Fiorina led corporate operations. In that capacity, she reported to Lucent chief executive Henry B. Schacht . She played

18221-497: Was the first woman to lead a Fortune Top-20 company. Fiorina started her career at AT&T and subsequently worked at Lucent Technologies , where she led the joint venture with Philips . In 2002, Fiorina oversaw what was then the largest technology sector merger in history, in which HP acquired rival personal computer manufacturer, Compaq . The transaction made HP the world's largest seller of personal computers. HP subsequently laid off 30,000 U.S. employees. Nonetheless,

18358-513: Was the world's largest oil producer. However, their reserves were declining due to high demand. Therefore, the United States turned to foreign oil sources, which had a significant impact on the recovery of the West after World War II. Most of the world's oil was found in Latin America and the Middle East, particularly in the Arab states of the Persian Gulf. This increase in non-American production

18495-481: Was to permit it to profit from sales to competing telecommunications providers; these customers had previously shown reluctance to purchase from a direct competitor. Bell Labs brought prestige to the new company, as well as the revenue from thousands of patents. At the time of its spinoff, Lucent was placed under the leadership of Henry Schacht , who was brought in to oversee its transition from an arm of AT&T into an independent corporation. Richard McGinn , who

18632-421: Was ultimately successful. In 2008, former acting CEO of Compaq Ben Rosen stated that although Fiorina lacked the skills to run the merged company, her successors made it work. HP was able to integrate Compaq's operations and emerge as the world's largest seller of personal computers. The industry soon fell into decline, leading to further difficulties for the company. HP eventually wrote off US$ 1.2 billion from

18769-630: Was using a loophole by routing their sales through a foreign subsidiary. HP ended its relationship with Redington Gulf after the SEC inquiry. In a September 2015 interview with Michael Isikoff , Fiorina said that, in the weeks following the September 11 terrorist attacks in 2001, she received a phone call from Michael Hayden , then the director of the National Security Agency , asking her assistance in providing HP computer servers to

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