At&T Business Analysis

2444 WordsJul 6, 200510 Pages
Table of Contents Executive Summary Question 1 – Analyse the strategic position of AT&T in 1994 1.1 Introduction 1.2 Strategic position of AT&T in 1994 1.3 Current situation analysis 1.3.1 Internal environment (SWOT, TOWS) 1.3.2 External environment (PEST) 1.3.3 Competitive environment (Porters five forces, diamond, value chain, and BCG Matrix) 1.4 Financial analysis 1.5 Conclusion Question 2 – Identify and evaluate the strategic options facing AT&T in 1994 2.1 Introduction 2.2 The architecture of strategy as applied to AT&T 2.3 Hierarchy of strategic intent 2.4 Growth strategy 2.5 Strategic partnering – Joint ventures 2.6 Strategic options 2.7 Conclusion Question 3 – Consequences for the global…show more content…
For most of its history, Ma Bell (AT&T) functioned as a legally sanctioned and regulated monopoly. When AT&T entered the global arena, the dynamics of classical competition changed and AT&T had to reshape and change their strategy to meet the new challenges of a global economy. 1.2 Strategic position of AT&T in 1994 After the divestiture of 1984 – 1988, CEO Robert (Bob) E. Allen started to rationalise the business. He broke up the giant functional organisation into 21 manageable business units to help drive responsibilities and accountability. Up to 1994 Allen reorganised AT&T 's crown jewel to be its core telecommuncations network and his strategy was to focus AT&T 's expansion only on the areas which enhanced this core. Allen explained, " Everything we are doing is designed to put more traffic on our network, to enhance the value of our network." With increasing competition, convergence of industries, deregulation and international trust laws, Allen soon realised that this strategy had to change. The BU structure and strategy of 1989, did not match the business needs for 1994 and the new millennium . A thorough analysis to reshape AT&T 's strategy was executed and this report contains its recommendations 1.3 Current situation analysis 1.3.1 Internal environment (SWOT, TOWS) The SWOT analysis (Appendix 1) revealed internal positive and negative attributes of the organisation, while the TOWS

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