Challenges in the Global Business Environment - Case Study Example

Challenges in the Global Business Environment Introduction AT&T is a multinational telecommunications corporation whose origin is in America. It has its headquarters located at Whitacre Tower, found in downtown Dallas, Texas. The company is the largest facilitator of mobile phones and fixed telephone service in the United States, as well as, provides television subscription services (Hertzoff, 2007). It is among the leading operator companies in Texas, only coming behind ExxonMobil and ConocoPhilips. The company is vast in its measurement of revenues, market value, profits, and assets. Its growth today takes it to the 20th position worldwide in all telecom operator services companies, having over 116.6 million customers (Allison & Thomas, 2008). The company began as a Bell Corporation company and later diversified accordingly from its parent company, the American Telephone and Telegraph, which later changed names several times until it became AT&T. From its logo, and trading symbol, the company depicts a remarkably successful operation telecommunications company, despite being in an extremely competitive industry of telecommunications, whose growth over the years is changing remarkably with respect to time and technology. Thus, to remain successful, the company continues to embrace technological advancements in its endeavour, as well as, incorporating successful success factors such including the code of conduct and ethical considerations. The company’s code of ethical conduct key success factors Success within the telecommunications service industry is a factor determined by the customer service that the company in question facilitates. Thus, with this realization in consideration, AT&T induces its presents within the international performing platform through its exemplary services and products. This service it achieves through executing strict adherence to its code of conduct and ethics with reference to its works (Allison & Thomas, 2008). The key success elements in this company, which continues to venture into the international platform extensively, incorporate that, firstly, it is essential to abide by the laws. In this key code, the company realizes that it operates within a business environment with strict legislation; thus, the need to avoid conflicts with the government or authority in place. Further, the company realizes that it operates in an international business market, and is thus subject to different legislation and policy (Hertzoff, 2007). Therefore, in adherence to the laws in place within the various jurisdiction of operation, the company is able to keep an exemplary cordial relationship with the authorities; hence its success in those countries. The second code facilitating success for AT&T is reporting the information regarding the company honestly (Allison & Thomas, 2008). Honest as a virtue determines the success of individuals and companies accordingly. Thus, by maintaining high standards of honesty within the markets of operation, the company maintains cordial relations with its customers and suppliers as well as all other stakeholders. This allows the company achieves its elemental success. Lastly, the other key success factor is its conduct concerning integrity and consultation facilitation. The company realizes that the success element relies on its teamwork of the employees as well as satisfaction to the clients. Thus, integrity allows it to meet the goals and objectives it sets as well as, maintain service quality that helps it to sell accordingly. Comparing and contrasting against two similar companies in the industry The competitive environment forms the other pillar of business success for AT&T. The company realizes that it does not operate in isolation, a factor that motivates it to keep improving its services quality. However, there is stiff competition in this telecommunications industry, with multinationals such as China Mobile Ltd and Vodafone Communications Inc being among the leading competitors in the retail industry (Boxwell, 2004). These companies operate on strict adherence to code of conduct stipulated and the ethics of the industry. Policy and regulation is the core operating principles in adhering to the ethics. For instance, with respect to the key three success ethical issues, the two companies operate on equally high levels of adherence to the standards. Vodafone Communications Inc is keen to maintain integrity (Boxwell, 2004). However, challenges such as dissatisfied customers and issues of product quality inspection, the company faces various challenges including court battles. These court battles dent the reputation of Vodafone Communications Inc with respect to integrity and honesty. However, with respect to adherence to policy and regulation, the company strives to achieve excellence by establishing working relations with the local authorities as well as the national governments of the various locations of their stores. Similarly, China Mobile Ltd, also operating in the United States as well as the international market operates on strict observance to the codes of conduct and ethics of the retail business (Boxwell, 2004). This company continues to grow expeditiously considering its strong ethical stipulations and participation in formation of policies regarding the industry. Thus, it establishes itself as force to reckon in the telecommunications retail industry. Techniques the select company can use to address the key issues The competitor companies of AT&T, which is China Mobile Ltd and Vodafone Communications Inc, all operate with close relations between their management, policies and the local authorities within which it has physical presence. These companies recognize the essentials of healthy business environment; hence, they facilitate the policy and legislation of the local authorities to foster their ethical issues (Boxwell, 2004). For instance, with respect to ethical issues regarding integrity, these companies realize the need to create a sustainable business environment; thus, they have departments to address the environmental concerns of the areas within which they operate. This strategy is key in maintain cordial relations with the community and the authorities; hence, their success in maintaining ethical conduct. Potential adverse effects if the company fails to address these issues The potential impacts of failing to observe the strict adherence to ethical codes such as integrity, honesty, and adherence to local and national policy and legislation regarding business operations, the companies face court summons, fines and eventual closure (Cole, 2010). The ethics in question are key pillars of success in retail industries, as such, when the company has no integrity, the customers and suppliers abandon it, leading to its failure. Thus, the consequence of failing to address the success issues regarding ethical considerations, the companies pay hefty penalty. Techniques the select company can adopt to remain relevant with respect to change through years Change is an unavoidable factor of life and as such, businesses that live for hundreds of years take the aspects of change and their impacts seriously. Similarly, AT&T realizes that times today are remarkably different from when it was launched. Therefore, the company operates on strict observance to the factors of change. To ensure that it remains relevant even in years to come, AT&T ought to adopt continual review of its operations, services and quality in the industry. Observing and keeping track of the industry trends is such strategy to adopt in keep in track with the changes (Boxwell, 2004). Further, formulating a flexible team in which it facilitates adoption of change as it comes is also a key strategy to examining relevant even in years to come. Most corporations and companies fail due to the difficulties in accepting and implementing changes. However, when AT&T visualizes change as part of the company operations and unavoidable factor, then it will remain successful in its remarkably vast operations and even expand further. Effectiveness of two methods the company currently adopts to manage environment issues AT&T Inc notes the need to define the challenges facing the globe with respect to environments issues. Further, AT&T works towards a sustainable environment to facilitate a stable financial field as the environment is key to its supplies (Cole, 2010). Therefore, in this course, the company initiates various methods and measures to address the environmental issues that affect its operations. The first key measure is with respect to energy. Energy within the world markets continues to influence the success of various industries remarkably and its fluctuations affect the business world extensively. Thus, AT&T resolved to employ a considerable percentage supply of renewable energy to its operations (Allison & Thomas, 2008). The company industries operate on renewable green energy, facilitating the processes of managing the environment challenges that result from energy issues. The second measure taken by the company in managing environment is with respect to waste. The company understands the cause of pollution and its impact on the environment. The course key in pollution is the products that the large companies produce. Thus, AT&T strives to achieve a zero waste creation in operations, motivated to produce products that are sustainable to the people and the environment. These products facilitate recyclable and easily disposable products, facilitating environment sustainability. Thus, in this course, the company is responsible in sustaining the environment. Approaches taken by select company to embrace technological advancements The growing technology continues to influence the telecommunications industry accordingly. As technological advancements come by and business expands, the company adopts technology gradually, initiating an IT department to monitor the process of adoption of technology. Consequently, AT&T adopted the success in managing its supply chains through technology, among other several technological facilitations such as distribution and advancement in manufacturing processes to produce excellent products (Cole, 2010). Today, the company holds a vast IT management department with experienced and qualified experts to manage the advancements in technology regarding the business and its industry. Through this facilitation, the company manages the changes in technology, selecting those that best fit the operations of the company and adopting the advancements. Potential technological challenges that the company could face Technology in the industry facilitates success of the companies that actively adopt and adapt to the changes as they occur. However, with respect to AT&T, it is notable that changing technology is proving a significant challenge in the future regarding technology. Notably, the competitors in the industry continue to develop and initiate various technological advancements, facilitating their competitive advantage over that of AT&T (Cole, 2010). Therefore, as a challenge, the company needs to stay updated with respect to the changing technology. Technology as an evolving and remarkably dynamic industry, it can spell the success or failure of a company. Therefore, AT&T will face this challenge of staying updated in regards to changes in technology regarding its industry such as supply chain management, employee management systems, delivery systems and customer relations computer systems (Hertzoff, 2007). These sections of technology are essential in the future of AT&T in managing technology and its advancements. Strategy to eliminate/minimize the anticipated challenges To combat challenges that emanate from technology, the company needs to feature a key success factor in the telecommunications industry (Hertzoff, 2007). IT is a remarkably dynamic field; hence, the strategy to adopt is to become dynamic with respect to the advancements. The company should consider adopting flexibility as a factor determinant to success. The AT&T Company currently remains rigid and lags in adopting technological advancements (Boxwell, 2004). Therefore, as the company anticipates the challenges, it should strategize accordingly and developing a competent and dynamic IT team to facilitate the management and evaluation of technological changes for the success of its operations and to keep with the competition in the industry. Lobbying strategy towards influencing the national or local government decisions in its favour The international market platform forms a considerable part of the AT&T retail communications business. Consequently, the company realizes the need to maintain cordial relations with the authorities and adhere to the legislations and policies regarding its business operations those countries or states. Therefore, in establishing its presence in the national and states markets, AT&T utilizes its strategic success factor of participation in the development of the political entities of the regions within which it operates (Cole, 2010). This strategy is key as it helps in establishing working partnerships with the local authorities and the governments that run these regions. The company achieves this by facilitating support to the political campaigns. Today, the company is the second largest donor to the United States political campaigns, and the top corporate donor in America (Hertzoff, 2007). Further, the company participates across the divide, supporting all sides of the political recipients in donations to ensure it gains favour in either side of the government. Further, the company profits from lobbying the politics by gaining the opportunity to provide broadband internet access to the United States; hence, making it remarkably successful in its lobbying practices. References Allison, J. R., & Thomas, D. L. (2008). Telecommunications deregulation: Market power and cost allocation issues. New York: Quorum Books. Boxwell, R. J. (2004). Benchmarking for competitive advantage. New York: McGraw-Hill. Cole, B. G. (2010). After the breakup: Assessing the new post-AT&T divestiture era. New York: Columbia University Press. Hertzoff, I. (2007). AT&T global messaging: The AT&T EasyLink services sourcebook. New York: McGraw-Hill. Read More