At&T Business Analysis

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Table of Contents

Executive Summary
Question 1 – Analyse the strategic position of AT&T in 1994 1.1Introduction
1.2Strategic position of AT&T in 1994
1.3Current situation analysis
1.3.1Internal environment
1.3.2External environment
1.3.3Competitive environment
(Porters five forces, diamond, value chain, and BCG Matrix) 1.4Financial analysis

Question 2 – Identify and evaluate the strategic options facing AT&T in 1994

2.2 The architecture of strategy as applied to AT&T
2.3Hierarchy of strategic intent
2.4Growth strategy
2.5Strategic partnering – Joint ventures
2.6Strategic options

Question 3 – Consequences for the global development of the telecommunications industry for AT&T


3.2Development of the telecommuncations industry – 2 scenarios

3.2.1Scenario 1

3.2.2Scenario 2

3.3Consequences for AT&T

3.3.1Scenario 1

3.3.2Scenario 2

3.4 Conclusion

Question 4 – Strategic change necessary to implement the preferred strategy at AT&T to secure competitive global advantage


4.2Strategic organisational change for global competitive advantage

4.3Changes in the organisation, its structure, culture and systems

4.4Mapping and recommendations for change




Executive Summary
The world is experiencing a communications revolution. The Internet, e-Commerce and other developments (including the convergence of communication technologies) are profoundly reshaping economic and social life. AT&T must position itself to meet the challenge of this revolution. The strategic development of information-based industries is a key to the future social and economic development of the world. The telecommunications industry is of vital importance to the development of the information-based economy. AT&T need to supply access to cost efficient, timely and innovative telecommunications services. AT&T had developed a reputation for providing high-quality long distance telephone services. It moved rapidly to exploit this reputation in the newly competitive long distance market by aggressively marketing its services against MCI, Sprint, and other carriers. Also, AT&T had traditional strengths in research and development with its Bell Labs subsidiary. To exploit these strengths in its new global competitive context, AT&T shifted Bell Labs' mission from basic research to applied research, and then leveraged those skills by forming numerous joint ventures, acquiring NCR, and other actions. Through this process, AT&T has been able to use some of its historically important capabilities to try to position itself as a major actor in the global telecommunications and computing industry. Effective competition is widely seen as a key to the development of telecommunications services. The ability of new telecommunications networks to interconnect fairly and efficiently with existing networks is critical to the development of competition. AT&T has undergone numerous changes since its inception in the late 19th century. The McKinsey 7 S framework as applied by Pascale is recommended to manage the changes they are facing to adopt a greater competitive presence in the global economy. In conjunction with this framework, numerous other models were applied to analyse the global competitive position of AT&T. Recommendations for a revised strategy and direction for AT&T have been made throughout this document including two scenarios of how the telecommunications industry might develop towards 2000, while outlining the impact on AT&T.

Question 1 – Analyse AT&T's strategic position
AT&T Corp., incorporated in 1885, is engaged in providing voice and data communications services to large and small businesses, consumers and government entities. AT&T and its subsidiaries furnish domestic and international long...
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