Diversity in AT&T Telecommunication Company - Essay Example

Diversity in AT&T Telecommunication Company Introduction AT & T Telecommunication Company provides reliable, innovative, and high quality products and services that meet the demands of their customers. Having over 103 million subscribers, the company mobility occupies the second place in the standing, after Verizon in terms of its client services. The company has the largest collection of available phones thus; it has an extensive wireless networks with the leading 4G network in the United States. In one way or another, the company is bringing it all at once for different customers, from inventive Smartphone’s, to upcoming production TV services and stylish solutions for a variety of businesses. The mission statement for AT & T is to link people with their globe, all over the place and do it better than any other company. The company is fulfilling the above vision by coming up with new solutions for businesses and consumers, and through driving modernism in the entertainment and communication industry. Reflecting on this perspective, this paper critically examines diversity in AT&T Telecommunication Company in the U.S from a broad point of view. Inclusively, the paper presents a SWOT analysis, recommendations, and appendices for the company. Diversity in AT&T Telecommunication Company in the U.S AT & T is a telecommunication company that has been in the telecom industry for several decades. Being part of the capital intensive business, AT & T’s domestic environment has been impressive in terms of stock and turnover. The victorious legal and regulatory outcome saw the ending of monopoly in American telephony in the year 1968. AT & T submitted various proposals including an application for low-cost educational television network (Campbell 28). This application was meant to show AT & T as the flexible company to public interests than any other firm in the industry. The FCC ruling on AT & T request took place on 14 August 1969 where AT & T was licensed to operate. It is imperative to state that the government regulation was not the reason as to why the company faced bankruptcy. Internal management was defective that saw the company faced with many financial scandals and the bankruptcy. The government regulation of 1968 was in favor of AT & T Communications and has been instrumental in shaping the domestic environment the company operates in for several years (Brooks 41). The Federal Communications Commission (FCC) established supportive laws, which saw AT & T use the opportunity to grow its market share and expand its customer base globally. With the intention of sustaining the growth, AT & T Corporation infused large capitals into its business. AT & T needed significant amounts of capital to finance its plans of increasing and maintaining its domestic market share (Borkowski 64). The company’s growth plan was a figure from $890 million in 1984 to $2.76 billion in 1987. To finance its forecasts, AT & T began by selling $481 million in common stock in 1984 the same way it had done in the past. The share price was $47 per share, and AT & T needed to capitalize on the high value at the time. From 1985 to 1989, AT & T sold convertible debentures. Another expectation of the company at the time was to achieve a market share of 20% by 1990. The company realized that to achieve this it required funding of between $890 million in 1984 to $2.76 billion by 1987. AT & T cash inflows at the time were insufficient to support its domestic environment plans. The company was to raise the finances through other means (Lawrence 15). This is where it opted to sell $481 million in equity in 1984, and afterward issued convertible debentures up until 1989 to match its expansion plans. Issuing those debentures allowed AT & T to convert them into stock giving AT & T a leverage to raise more debt. Reflecting on research, AT & T is experiencing a competitive global environment as new competitors are contending for market share in an investment concentrated business. With the increased competition in the global environment, the company faces the threat of using too much leverage, seeing that this may result to financial crisis in the future. Recent market performance of AT & T Communications has shown that the government regulations subsequently led to increased profitability, stock and expansion to the global market (Morrison 24). A Communication Task Force appointed by the president issued a recommendation in its report that exceptional common carriers be allowed access into the private line trade. This government regulation is the basis under which the domestic environment of the company grew. This made the corporation thrive in the United States. After saturating the domestic environment, AT & T began strategies that would see it spread its wings globally. This implies that the government regulation had a direct effect on the domestic environment, and indirect positive effect on the global environment of the company. Government regulation also allowed AT & T to grow globally through merges (Campbell 49). It is worth noting that such is an insignificant government regulation that does not particularly lead to loss of customers, profits or the mode of domestic environment of the company. There have not been recent government regulations that have seen the changes in the domestic environment of the company, such as those that happened in the inception period of the company. After the opening of the long distance market in 1984, following a president’s Communication Task Force recommendation, companies such as MCI began to compete with AT & T, the giant company then. Several years ago, AT & T introduced AT & T Satellite, Inc. Later on, AT & T strengthened its hard technology by offering switched voice telecommunications which was achieved by purchasing Digital Tandem Switch (DTS) voice-switching systems. Moreover, AT & T launched a data network using CCITT X.25 packet switching protocol and AT & T Mail (an electronic mail service). AT & T also began offering circuit-switched direct-dial services which was executed by use of microwave circuits. AT & T was also the first company to set up single-mode fiber optic cable (prior standard was multi-mode) (Brooks 64). The company also launched a dial-around collect calling service referred as “1-800-COLLECT", and in 1995, the company introduced 1-800-MUSIC-NOW, a short telephone-based online music store. All these are hard technology that saw the company grow in terms of technology and service provision before its collapse. The soft technology was deficient. This is supported by a report by Securities and Exchange Commission investigators who found out that Ebbers, the former CEO of AT & T and who resigned in 2002 admitted that he had inflated $3.8 billion in the company. Ebbers and AT & T also admitted to some $11 billion fraudulent accounts practices that had fueled AT & T’s rise (Borkowski 76). WorldCom executed major accounting misstatements that as fraudulent cover up of the financial condition that the organization was in during that time. The government’s failure on the regulatory structure to protect Americans investors and companies from economic hardship was a barrier to the company. The housing debt that arose in the 2001 based on non-existent equity into securities, which eventually became worthless, caused a worldwide economic collapse. In this case, AT & T Communication was involved (Ozbilgin 64). Other government political and legal barriers that AT & T encountered include trade barriers and protectionist measures such as high tariffs, quotas, and the licensing requirements. This is because the government wanted to shield itself from international competition, but on the contrary this acted as a barrier to AT & T Communications. There are several socio-cultural factors of the domestic and global environments of the AT & T Corporation that can be examined accordingly. Some of the socio-cultural factors to compare and contrast include practices and systems, mobility of production, regulation and policy, political risks and system. The practices and systems of the domestic and global environments vary concerning the socio-economic improvement, competence and cost of financial infrastructure. Through comparison, it is agreeable that the practices and systems of the domestic and global environments form a point of reference from where performing business and realizing gains begins (Morrison 57). On the contrary, the practices and systems of these environments are controlled by different factors. For instance, the practices and systems of the global environment are reliant on quality production, competitiveness, and demand and supply. However, the practices and systems of the domestic environment are reliant on government regulations and restrictions. The second socio-cultural factor to compare and contrast of the domestic and global environments of the company is mobility of production. Mobility of production has something to do with capital and labor. Through comparison it is clear that, in mobility of production for instance, capital and labor, both environments have a common goal to utilize on the labor whereas maximizing on the profits. In contrast, it is undeniable that dealing with the global environment involves lots of constraints as compared to the domestic environment. In that case, the domestic environment is seen to have reasonable restrictions to carry out business effectively. Then again on mobility of production, it must be noted that dealing with the global environment differs in geographic influences. This varies significantly with the domestic environment, given that it is never influenced geographically. Another socio-cultural factor to compare and contrast of the domestic and global environment is policy and regulation. In any given business or organization, there are some policies and regulations that serve different functions. Policies and regulations have several functions to perform irrespective of the environment. It is worth noting that the policies and regulations of the domestic and global environments are implemented to promote business activities, security and a peaceful co-existence among shareholders and stakeholders (Lawrence 28). However, policies and regulations of these environments differ in one way or the other. Every country has its own regulations and policies developing in the business activities. This is an implication that the global environment is exposed to several policies and regulations as compared to the domestic environment. Evidently through research, policies and regulations are much applicable in the global environment than the domestic environment. The final socio-cultural factor to consider is the political risks and system. Unquestionably, domestic and global environments vary when it comes to political risks and system. Evidently, the political aspects show deep impact in the performance of any given business. This implies that the performance of the business is significantly affected by the form of management, political risks, and political ideology (Borkowski 98). Nevertheless, this is not a major issue when dealing with the domestic environment, but with the global environment. Noteworthy, the political risks has a vast implication in the global environment as foreign nations in most cases favor the products and services they provide. The main economic theories for both the domestic and global environments of AT & T Communications to compare and contrast are the macroeconomics and microeconomics. Building on research, the microeconomics theory, manages the economy at a scale that is not extended for instance, the market for a given product (Ozbilgin 88). At AT & T Corporation, the microeconomics is used to deal with the domestic environment, given that its economy is at a smaller level compared to the global one. Furthermore, the macroeconomics theory applied at AT & T Communications studies the activities of the whole economy. However, it must be understood that this theory takes a look at economies of diverse areas that encompass the whole economy. In comparison, both theories have a common role to play in managing the economy of the organization (Brooks 87). With the aim to manage the economy of the company in both the domestic and global environments, these theories form a point of reference from where profits are realized within the shortest time possible. As well, the theories have a common function to measure the losses incurred in both environments. In contrast, there are various ways through which these theories vary in terms of application and functionality in both environments. Based on a broad perception, it is clear that the microeconomics theory is only applicable and functional at the domestic environment. This implies that this theory is limited to its level of application and functionality, given that it manages economy at a smaller scale (Lawrence 59). What is more, the macroeconomics as well varies significantly in terms of its application and function. With reference to its application and function, this theory goes beyond the domestic environment by dealing with different regions, which in one way or the other define the global environment. Most remarkably, this theory is unique since it can function in both environments. It is worth noting that AT & T Communications Corporation has been in business for several years. Despite this fact, the company has faced several challenges in both its domestic and global environments. In one way or the other, such challenges have defined AT & T’s points of weaknesses and strengths. Being influential in regulatory and lawful alterations that resulted to fall apart of the AT & T domination, the company developed a competitive edge in the telephone industry (Campbell 67). By so doing, the company was able to achieve a great market share during that time. However, several challenges faced the company’s success, and in that way it was declared bankrupt. Over the last years, the company has been changing its name in order to acquire new market share in the global environment. Through evaluation of the company’s history, one can deduce that it has been performing fairly, the reason why it has not collapsed completely. This implies that the company should adopt a new way of doing things in order to realize more gains, minimize on costs, and achieve its set goals in the long run (Morrison 98). Achieving this will not be an easy task, and so the call to implement advanced business strategies will be required. In order to achieve success, it is recommended that the company must employ the most excellent marketing strategies. The implementation of the finest marketing strategies in the sale of products and delivery of services in both domestic and global environments will form a benchmark from where the company will perform better. Through the use of new marketing strategies, which will engage the recent technology, several customers will be attracted in the company’s environments. According to studies, doing business in any given environment is always subjected to changes, given that customers change taste for products and competitors are ever on rise (Sundaram 49). In simple terms, the manner through which AT & T Communications has been carrying out its business must be changed in order to match with customer preferences. SWOT Analysis The internal and external environments are always important when it comes to the marketing process. AT & T has been embarking on significant processes to make sure it has marketed its products and deliver services accordingly. The company is currently operating a wide range of products ranging. The use of SWOT Analysis is applied to analyze the Strengths, Weaknesses, Opportunities, and Threats affecting the company. The strengths and weaknesses try to capture the internal factors while the opportunity and threats are dependent on the external factors (Pakhare 49). All these should be studied and analyzed so that the performance of a company can be improved accordingly. Strengths The presence of marketing strengths for the new brand will make it possible for the company to realize its potential (Valentine 92). AT & T Corporation is expected to achieve income because of its strengths, which are based on quality production. The following strengths will determine the sales of products and services. Presence of a reputation for the company’s products Best production of phones and other devices Manufacture of quality products demanded by many consumers Consumer relationships Presence of technological skills Consumer care Weaknesses Weaknesses will always pose harmful impacts on the sale of new products. The main weaknesses to be faced are as follows: Lack of suitable market penetration Availability of unknown products Consumer low levels of retention Lack of suitable marketing skills Unreliable marketing processes Opportunities The availability of opportunities will continue forming a benchmark from where the new product will dominate different markets. The opportunities will comprise the following: Increased use of new technologies Conducive political setting in the environment Less taxation Presence of new channels for distribution Threats Threats consist of: Changes in taxes Presence of new channels and products in the market Increase in taxation Changes in consumer preference and taste for other products Presence of competition for same products Technological growth adopted by competing firms Conclusion For an organization to be successful in its business it is required to understand the wants or needs of the target market. This will improve the goods and services satisfying the specific desires of the market more effectively. This will improve the competitive advantages of the business. Marketing mix help organizations develop good relationships with their clients hence maximizing returns to the shareholders and also create a business advantage. For AT & T to sell its new products, it would be essential to conduct an appropriate market survey and consider all market cycles and factors (Brooks 105). It would be necessary to come up with a number of recommendations on strategies that organizational managers and leaders can use to create and maintain a healthy organizational culture. To begin with, there should be the adoption of leadership skills which are theoretically proven as this will improve the aspect of mentoring and ensure that the greatest of gains have been realized in the business (Campbell 75). This ensures that there have been the adoptions of ways of mentoring and monitoring which leads to appropriate business engagements. As well, there can be organizational theories which come up with ways of improving leadership in the business, integrate planning procedures, and also engage promotional behavior. There should also be the need of ensuring that the business has adopted a number of approaches such as decisions making as part of management and leadership, and such shall be effective towards positive goals and results in the business. In short, it would be appropriate to adopt a number of approaches which relate to the ones which have been applied at AT & T Corporation, and such shall be the rightful approach towards the realization of the greatest of goals and achievements in the business (Lawrence 98). This should also be done appropriately and ensure globalization has been encouraged in the business culture towards the best of business performance. Recommendations Several tactical actions can be used for the sale of new products. Tradeshows and promotional tours should be held to improve the sales and awareness of the product. Another implementation procedure will include the use of holiday promotions. These procedures include tactical actions of holding tradeshows whereby the audience will be informed about the product. For this promotion strategy the audience will be given useful information about the product and how it can be useful to them (Valentine 101). This promotional strategy will be done for three months: from January to March and different areas will be visited. This is an appropriate approach to improve awareness as well as sales for products. Sales personnel should be employed and use a few celebrities and footballers among others. These people have a wider fan base thereby increasing the number of people attending these promotional tours and tradeshows. To improve the tactical action and plan, several resources will be needed for the customers such as catalogues and brochures (Borkowski 105). These will help improve the marketing and market share for the product. These promotions will help increase sales and revenue. This is because the consumers will be motivated to purchase the product. At AT & T, there should be the need of ensuring that all business engagements have been appropriately led and managed towards the realization of the best business goals. In that sense, it should be necessary to apply all management functions as this has the capability of ensuring that the best of gains have been realized in the operations of the business. However, there should be the need of understanding that there are a number of differences between management and leadership. In management, this is a wide conceptual approach which borrows into it four major functions, and this include leading, planning, mentoring, and controlling. However, there should be the need of noting that there are some other adoptions which might be adopted for the business managerial processes. Management is in itself a combination of very many functions which should be adopted depending on the kind of business. On the other hand, leadership is a single function within management procedures, and in that sense it adopts the moves of motivating individuals within the business organization, showing them the way forward, and also ensuring that they have been given the appropriate mentorship from the leader who acts as the role model. At times, leadership would require the application of a number of approaches such as decision making and pioneering positive activities within the business so that the greatest gains can be realized in the very end. In that sense, at AT & T Corporation, there should be appropriate engagement of positive leadership and management, which will be appropriate in the realization of goals within the operations of the business hence becoming one of the major industrial players (Campbell 84). Appendices: Works Cited Borkowski, Nicolas. Organizational Behavior, Theory, and Design in Health Care. New York: Oxford University Press. 2008. Print. Brooks, Isaac. International Business Environment: Challenges and Changes. New York: John Wiley and Sons. 2010. Campbell, Craig. Organizations and the Business Environment. New York: Longman. 2010. Lawrence, Hillary. Strategic Issues Management: Organizations and Public Policy. New Jersey: Prentice Hall. 2009. Print. Morrison, James. International Business Environment. London: Palgrave Macmillan. 2009. Ozbilgin, Michael. International human resource management: theory and practice, Prentice Hall, New Jersey. 2005. Print. Pakhare, Joseph. Management concepts: The four functions of management. Oxford: Oxford University Press. 2007. Print. Sundaram, Black. The International Business Environment: Text and Classes, Oxford University Press, Oxford. 2008. Print. Valentine, Emmanuel. Away with SWOT Analysis: Use Defensive/offensive Evaluation Instead, The Journal of Applied Business Research, 21.2(2009), pgs 91-105. Read More