NATIONAL INSTITUTE OF RETAIL
Subject: General Management
TRI – STATE TELEPHONE
Question 1: Who are the stakeholders in this case?
Answer: Stakeholders: Those groups or Individuals who are directly or indirectly affected by an organization’s pursuit of its goals. Stakeholder falls into two categories. External Stakeholders: External stakeholders include such groups as unions, suppliers, customers, special-interest groups and government agencies.
Internal Stakeholders: Internal stakeholders include employees, shareholders and board of directors. In this case the stakeholders are customers of Tri-State’s, employees, The Federal Communications Commission, Consumer Federation of America and Congress of Consumer Organizations.
Question 2: Which stakeholders are most important?
Answer: The customers and employees of Tri-State’s are most important stakeholders.
Question 3: What are the critical trends in Tri – State’s environment? Answer: In 1984, the AT & T divestiture sent shock waves throughout the industry, and Tri-State Telephone had felt the effects, as pricing for long distance telephone service changed dramatically. In addition, technology was changing rapidly. Cellular telephones, primarily used in cars, were now hand-held and could be substituted for standard phones. Digital technology was going forward, leading to lower casts and requiring companies like Tri – state to invest to keep up with the state of the art. Meanwhile, rate increases negotiated during the inflationary 1970s were keeping earnings higher than regulators would authorize. New “Intelligent” terminals and software developments gave rise to new uses for the phone network (such as using the phone for an a arm system), but as long as customers paid one flat fee, the phone company could not benefit from these new services. Question 4: Why do you think Tri – State’s customers are so upset? Answer: Tri – State Company has recently proposed a new pricing system whereby users of local telephone services would simply pay for what they used rather than a monthly flat fee. Angry customers had marched in to protest Tri – State’s latest rate request....
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