Saturday, July 2, 2011

AT&T Organization Structure

The current AT&T reconstitutes much of the former Bell System and includes ten of the original 22 Bell Operating Companies along with one it partially owned (Southern New England Telephone), and the original long distance division. The company is headquartered in downtown Dallas, Texas.


CEO - Randall Stephenson

Director - Laura Tyson

Director - Reuben Anderson

Director - James Blanchard

Director - James Kelly

Director - Lynn Martin

Director - John McCoy

Director - Jaime Pardo

Director - Matthew Rose



Director - Patricia Upton

Director - Gilbert Amelio

Director - Joyce Roche

Lead Director - Jon Madonna

CFO - Richard Lindner

CTO - John Donovan


Shared Services - CR

Corporate Strategy & Development - Forrest Miller

Diversified Business - Rayford Wilkins


AT & T Mobility - RdLV 

AT&T Business Solutions - JS

Advanced Enterprise Mobility - MA

AT & T, Texas - DC

Operations - James Callaway


Operations - RS

External & Legislative Affairs. - James Cicconi


Legal - WWMarketing - CC
Human Resources




AT&T has two major strategy of control in its organization, first strategy pertains to the output of the teams. This type of control places emphasis on the actual targets of the company. The existence of this control strategy is seen in many organizations. It is customary for those in the management position to adhere closely to the set of objectives to achieve specific results. This means that the output is deemed more important in as much as the means intended to realize these outcomes. Hence, it shows that the company’s teams enjoy a considerable degree of independence with respect to the methods they used for reaching their respective targets pre-defined by the management.

Second strategy is the written explicit knowledge in the organizations. These include the policies as well as the rules and objectives of the organization. Both items provide a prescribed set of rules that presents the specific manner on which tasks are to be performed. However, given the departmentalization present in the company as manifested in the division of labor as well as the decentralized decision making assigned to teams, it shows that these existing policies, rules and regulations are merely directory in nature.

"Synergy"

AT&T has claimed synergies from buying T-Mobile USA this year, 2011 for an offset purchase price of $39 billion. What worry the FCC is, AT&T has made similar promises with its previous acquisitions, and it isn't clear it has achieved them after since. When AT&T announced the deal of purchasing BellSouth in 2006 with $67 billion, AT&T said it would generate synergies with an annual run rate of $2 billion by 2008, and will rise to $3 billion in 2010. Unfortunately the plan was mainly from cut cost in areas like advertising and staffing. AT&T’s filings show that its total earnings before interest, taxes, depreciation and amortization, or Ebitda, rose by about $2.5 billion at the end of 2006 when the deal was closed, assuming the combination had been in effect all year, and 2008. That means if the synergies were achieved, profits from the organic business were barely up. The same promises has done with the T-Mobile acquisition, AT&T also promised the BellSouth deal would save money on capital expenditures. "It estimated annual savings of $400 million to $500 million in capital expenditures by 2009, off a base of the combined companies’ 2005 capital-expenditure spending of $17.9 billion, about 15% of revenue." (qouted from  Wall Street Journal April, 13 2011) Seeing AT&T’s capital expenditures averaged $18.4 billion between 2007 and 2010, still about 15% of its revenue. During the 2009 economic downturn it has not show a big dip in that saving. Indeed, last year it was $19.53 billion, 15.7% of revenue, and AT&T has projected it will be in the “low to mid-$19 billion range” this year.


Read more about the possibilities of AT&T acquisation of T-Mobile will not succeed.

The FCC Should Put a Stop to the AT&T Merger With T-Mobile

Friday, July 1, 2011

AT&T ..............International?

AT&T Opens International Innovation Center in Israel

  • AT&T Foundry in Ra'anana is the second permanent location in its growing developer collaboration network.


AT&T has not spread it businesses internationally, since it is a very high risk strategy to approach because of there are many factors need to be considered such as Liabilities of Newness and Foreignness, Costs Associaed with Governance and Coordination, Offsetting Costs and Benefits and Location. Location is the most critical factor to consider because of its implications for input costs, competitors, demand conditions, and complements. However, AT&T has made their decision  locate their innovation center abroad to learn and share the ideas to improve their services.

To read more click the link below:

http://www.virtual-strategy.com/2011/06/15/att-opens-international-innovation-center-israel

"Technological Change"

AT&T had jump into the most advance technology in mobile phone business to attract its customer by introducing Apple's IPhone in June 2007. This technology chance the whole mobile phone manufacture mind about what customers need and want. AT&T's revenue increase tremendously by selling IPhone with Data Plan bundled into the regular Voice Plan. IPhone users still sticks with AT&T because of its reliabilty and services and also non-stop up-to-date applications.

"AT&T is growing its efforts to build and sell business applications for wireless devices -- To go beyond that, the company has built a portfolio of hundreds of software products for wireless devices that help with everything from taking dictation and creating electronic forms to synchronizing sales-force automation technology with smartphones. The company sells apps to 14 industries—such as manufacturing, financial services, and construction—as well as software that goes across industries for uses like managing fleets of trucks".

Read more: http://www.portfolio.com/companies-executives/2010/07/20/att-ramping-up-b2b-application-development-as-part-of-diversification-efforts/#ixzz1WBFo1N81

AT&T's Strategy is sound........

"AT&T's Strategy is sound. We Know that because of the many other players in the marketplace with the same strategy." Said Rick Miller, CFO of AT&T, Sept 25 1996.

AT&T's ODD (Opportunity Discovery Department) was found in 1995 and ended early 1998, purpose to help AT&T in decision making of their reasearch and development budget and to observe the profit margin. The management department does not seem to be able to reach the terms with industry deregulation, the Internet or the out-of-interest long-distance telephone services. The ODD also were responsible for emerging strategy failure and threats to the company.

AT&T has consistently made strategy without the concern of the management although the company's policy prohibits the ignorance of top management. Truth is strategy isn't just concern of a  few executives with "Strategy" under their title belt but to open to all passionate people who works in AT&T. That was the reason ODD did not last too long.

Above are the Company Logo of AT&T.

AT&T's strategy is to lead the telecommunication industry regardless the cost of investment. AT&T's strategy model is more likely to differentiation model where AT&T keep improving to out-beat the competitor's technology and speed but sadly not in price wise. However, AT&T have ready to the maturity stage of its strategy because of the pecentage of AT&T subscribers are very high and have the best coverage, speeds, and flexibility.

Sunday, June 19, 2011

Rebundling Resources and Capabilities

Since, a decade a AT&T had been actively acquiring firms and companies to improve their services to customers and also to expand their businesses to become U.S largest company. However, FCC ( Federal Communications Commission has been holding them back and forth regarding the merging simply because FCC was concerned about the threats that would occur if AT&T monopolized the communication industry. AT&T managed to convinced FCC to approve Bellsouth merging in 2006 after one year of announcement made to the public, this include combining few other companies ( ie. Cingular and Yellowpages.com) into one company, AT&T Inc,.

In June 2007, AT&T discussed how wireless services are the core of "The New AT&T" and also declining sales of traditional home phone lines, AT&T plans to roll out various new media, which is the successful application today in most AT&T cellphone has, Video Share, U-Verse. AT&T also expand the high speed internet into rural areas across the country. "On 12 December 2008, AT&T acquired Wayport Inc,. a major provider of Internet hotspots in the United States. With the acquisition, AT&T's public Wi-Fi deployment climbed to 20,000 hotspots in the United States, the most of any U.S. provider" (1). For the same reason, AT&T is acquiring T-Mobile this year but still waiting to approval from FCC and CCIA. In the future, it will be only AT&T and Verizon left in the business.

Sunday, June 12, 2011

Introduction

At&t was found on October 5, 1983 and officially transferred the ownership from Southwestern Bell Company on January 1,1984. However, it was operating under subsidiaries of Southwestern Bell Publications, Inc., a directory publisher; Southwestern Bell Mobile Systems, Inc., in the business of mobile telephone service; and Southwestern Bell Telecommunications, Inc., focusing on marketing phone equipment to business customers. In 1987, SBC bought Metromedia Inc.'s cellular and paging business. This in turn boosted the company to third largest cellular-communications company in the United States; behind McCaw Cellular and Pacific Telesis.

At&t strategy still remain the same for today by acquisition of the other telecommunication company to expand their businesses, services and customers. The most recent acquisition is on March 20, 2011 which At&t acquired T-Mobile, this would result At&t monopolizing 43% of U.S mobile services. They slogan "Rethink Possible"  really making the consumer to re-think the possibility of one America, one company strategy. In business stand point it is a very good idea but consumers' stand point is a dangerous and risky if that happened, simply because if there is only one company in the U.S, At&t could charge any rates and any plans, and policies as they wish. Which also means At&t would control the industry of telecommunication and eventually will conquer the whole world telecommunication industry as well.