Business Analysis : Verizon Wireless

. Verizon’s management can improve the company’s segmented financial data by defining the non-GAAP measurement (Segment EBITDA), explaining why utilized and how the measurement reconciles back to GAAP.

In business, market structure plays an important role, which helps to shape the competitive landscape for businesses at all levels. Each business industry will naturally form a market structure that comes in numerous forms: Perfect competition, monopolistic competition, oligopoly, or monopoly. Verizon Wireless is a well-known communications company and large enough to affect the market. Oligopoly is defined as a market in which only a few firms dominate, and judging from Verizon competition there are only a few firms involve: T-Mobile, AT&T and Sprint. With only few competitors involve the barrier to entry is high, but there still lies a large pool of customers. The barriers are high because of the amount of money that has to into the infrastructure

Revenue Recognition – since Telco’s main source of revenue is from access and usage of network, it is important to understand how this revenue is recognized and earned. Verizon bills its access revenue in advance and is recognized when the revenue is earned. The usage revenue is billed exactly the opposite, in arrears. This revenue is recognized when services are rendered. When handsets are delivered to a customer, as well as additional equipment revenue, is when the revenue from these transactions is realized (Verizon notes, 2014).

As corporations and businesses evolve, they must adapt to the changing landscape of societal, environmental, and corporate-success needs. To achieve such responsibility, Verizon Communications Inc. has, and continues to, meticulously plant its feet into the web of the triple-bottom line. While maintaining their credo which is “a blueprint that directs us to live up to the highest standards when serving our customers, shareowners, communities, and each other”, Verizon aligns their overall goal to “design, build, and operate global networks, information systems and mobile technologies that connect people, grow businesses and economies, and improve communities” (Verizon.com). The

Verizon is a major telecommunication provider in the United States. The company is the market leader, with $110 billion revenue and $2.4 billion in profit (MSN Moneycentral, 2012). Verizon has steady revenue streams that are largely based on a subscription model. It has several business segments, including wireless (63.3% of revenues) and wireline (36.7%) (2011 Verizon Annual Report). Most of this report will therefore focus on the wireless business, not only because this is the largest business that the company operates but because it is a rapidly growing and evolving business as well, a function of the rapid pace of smartphone adoption in America.

Sprint is one of the many corporations that has enabled the emergence and evolution of technological innovation. We all know it as a major “global communications company that serves 23 million customers in over 70 countries” (“History of Sprint Corporation”), and it consists of a vast array of products and services to offer the world. It is a major wireless provider in the telecommunications industry. What individuals in society are not quite familiar with is Sprint’s humble beginnings. History

1. Mission, vision, and primary stakeholders Verizon's corporate mission statement is published in the introduction to the 2010 report, "to enable people and businesses to communicate with each other. We are also committed to providing full and open communication with our customers, employees and investors" (Verizon, 2011a, p. i.). This conveniently outlines the primary stakeholders, with customers owning the service delivered through contracts they commit to, employees obviously having a stake in compensation, benefits and retirement, and investors including institutions as well as individuals. Other stakeholders include the general public who benefit from corporate giving and responsibility, and the suppliers and distributors, their shareholders and employees who earn profit and wages generated directly and indirectly as part of the Verizon value chain, and perhaps the taxpayers who enjoy public services from direct and indirect (capital gains) taxes thereby.

Accounting information is used by management in various ways to make the business decisions. Accounting information is used to compute financial ratios and comparing the financial data of one period with other. Various Ratios are used by the managers and accountants for controlling the functioning of the organization. These ratios are also known as accounting or financial ratios, these ratios play very important role in the organization. Following are the ratios of Verizon wireless for last three years:-

Through this idea of “growth” and collaboration with other industries to provide optimal service, Verizon has expanded its products and services in the following areas:

Verizon Communications formed by the merger of two big and successful companies, Atlantic Corp. and GTE Corp., is the largest telecommunication company. The company serves large part of the market in United States. However the company faces certain strengths and weaknesses which affect the way company formulate its strategies.

The purpose of training and developing within any organizations is to improve the overall effectiveness of goods, product and services, competitiveness, and emphasizes growth in all aspects. It also increases productivity, develop employee turnover, increases financial gain, and lessens the managerial and supervisory positions. Training and developing is essential to obtain but many employers have different perspectives of what training and developing means for its organization. Verizon is one of the leaders in innovative wireless communication and in delivering broadband to businesses, mass market, wholesale, government, and it services over 80 million customers across the world. The

The success of the economic agents depends on a multitude of forces, such as the managerial ability to combine and exploit the resources in an efficient manner, the ability to manage the labor force or the ability to develop positive relationships with the external stakeholder, such as the customers, the business partners, the public and so on. Still, while all these factors are crucial, they are merely adjacent to the core operational function which builds towards organizational success, namely the organizational operations.

The Verizon Communication Company deals with the sale of products like mobile and fixed telephone and offers broadband wireless internet services in America. It was founded in 1984 as Bell Atlantic and later changed the name to Verizon Company after merging with GTE in 2000 (Sbeit, 2008).

You would not buy a home, car or other large purchases without researching what product offered you the most for your money. The same is true when investing in a company. Investors do avid research on multiple companies to find what company matches the investors' criteria. In this paper Team C will research both AT&T and Verizon's financial documents. Team C will compare selected ratios, cash flow and make recommendations how both companies can manage cash flow for the future.

In analyzing Verizon's strengths, it is apparent that they have strong brand recognition in the market and industry. They are not only the leader in market share for wireless presence in the U.S., they were also ranked at the top for branding and customer loyalty in the wireless phone category and received the 2005 BrandWeek Customer Loyalty Award as a result (Verizon Customer Satisfaction – Award & Recognition, 2005). In addition to strong brand recognition, Verizon is ranked the