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Brief History of Att

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Submitted By Davidlee10
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2014
Randall Stephenson and AT&T

Randall Stephenson and AT&T
The beginning history of AT&T consists largely of the invention of the telephone in 1875 by Alexander Graham Bell. Progressing into the 19th century, AT&T became the umbrella company over the Bell System, or better known by some as, the American Telephone Monopoly. There’s no argument that the Bell System was the best telephone service in the world and by 1969 ninety percent of households in the United States had home phone service. Yet in the background to providing home phone service AT&T was also hard at work in continued development or forecasting for the future. From the early 1900’s to the mid 1970’s new advancements of communication technologies were taking place in AT&T’s Bell Laboratories subsidiary. These innovations included alternatives to copper wires such as microwave relay systems and commercial communications satellites for international communications. However, like all behemoths, a fall was inevitable. The changes in telecommunications over the years led to an antitrust suit by the U.S.Goverment against AT&T. This began in 1974 and settled in 1982 with agreement that AT&T would divest itself into a new AT&T and seven regional Bell operating companies. This was believed to enhance entry for competition. Which in fact, it did, as many new companies began to emerge. But what it also did was create the most elaborate change in corporate culture ever undertaken by a major American corporation. So not only did the technology completely change but also the way in which it was managed. Early on, classical approaches such as Scientific Management and Bureaucracy is what were used in leading the internal framework of the organization. Since it was a monopoly there was no pressure of competition meaning that as much time and money as it took to get things done right was normality. But when the divesture took place new ways of delivering products and services to customers in a timely manner were needed since now there were other company wants to meet the needs of the same consumer base. This dilemma proved to be more complex than anticipated as the company moved from monopoly to competition As major internal shifts and restructuring began to take place new means of management where employed like those of quantitative management so that the organization could realign itself to be as efficient as possible. Not only did AT&T launch a successful internet service but also the company invested 35 billion dollars into acquisitions of leading global networking services, two large cable companies and wireless services. These investments are the future of AT&T’s sustainability as it provides new growth platforms to ensure the company’s relabeling of itself as a major broadband leader in the industry of global telecommunications. As stated in the letter to investors from the 2013 10k report simply put we have created the framework for the fastest, largest technology transformation in our lifetime. Also worth noting from the 2013 10k annual report are the many recognitions AT&T has received like the Thomson Reuters Top 100 Global Innovators list for the second year in a row and the Gold Stevie form the American Business Awards for the most innovative tech company of the year. Yet AT&T also fulfils social responsibility by winning the number three spot in the inaugural Civic 50 list of America’s most community-minded companies. In its uverse/home solutions base, AT&T was the recipient of the 2013 Frost & Sullivan Video Company of the Year Award in North America and finally in the wireless division PC Magazine Named AT&T’s 4G LTE network as America’s fastest with sweeping the top rankings in all six U.S. regions from coast to coast. AT&T ranked first in 24 of the 30 markets tested, an amazing record to set. So as we can see AT&T has made tremendous strides in all areas of telecommunications global as well as locally but even more outrageous is the ability to stay viable in an ever changing world. Now let us dive into the SWOT Analysis. Strengths:
AT&T is one of the oldest telecommunication service providers and its brand is historically known in the cooperate world. The company has been able to evolve and adapt from the original services it offered and has grown to provide new innovations to strive in a competitive environment by way of strategic maneuvering.
Has a large array of different communication sectors touching all bases from data to wireless, TV and landline services to provide flexible processes by way of Adhocracy so that growth and adaption will always have a place in its ever changing and challenging environment
2nd largest wireless carrier in the United States
Trusted brand and loyal customer base
Compliance based ethics programs and training for all employees
Holds highly corporate social responsibility as it has won awards for employee volunteerism
Weaknesses:
Fierce competition from other emerging competitors like google and Verizon.
Customer service can be less than optimal with lots of transferring to different departments
Technical support is mostly outsourced to other countries which can create communication and language barriers for consumers
Time consumption of rolling out new fiber optic network Opportunities:
Expansion of the fiber optic network better known as Uverse in a speedier manner to gain a larger customer base.
More merges and acquisitions of companies to expand the mobility and video networks
Making software and not hardware the heart of the network infrastructure
Making the customer experience more effortless and efficient
Working towards organizational agility
Threats:
Possible regulatory issues stemming from FCC
Weather changes can effect wireless connections
Fierce competition in the telecommunication market
Fluctuation in global economies Now that you have learned the history of AT&T as well as the SWOT, let’s dive into the leader of this mega force. That leader would be none other than chairman and CEO Randall Stephenson who has held this position since 2007. However, before being chosen as CEO, Mr. Stephenson has held a variety of high level positions including those in the finance, operational, and marketing sectors within AT&T. He began his career in Oklahoma, his hometown, in 1982 and from 2001-2004 he was also Chief Financial Officer which was surely an obvious place for him to lead in since he earned his B.S. in accounting from Central State University and his Master of Accountancy degree from the University of Oklahoma. He also held office as the company’s Chief Operating Officer from 2004-2007 and in 2005 was appointed to AT&T’s board of directors. In between 1982 and 2007 there were even more positions this highly decorated leader held but it’s so overwhelming and that is why I’ve listed a few, yet what I’d rather do is focus on just what it is that makes Randall Stephenson so potent. I believe in part it’s his aggression in learning and leading with vision. When asked what does he consider the key to his success he’s quoted as saying,” For every job I’ve ever had, my attitude has been to take it apart, look under the hood and analyze it, then put it back together again with the objective of making it better than I found it. I know that sounds pretty simple, but it works. It will make you a better, more valuable employee. And make your company stronger as well.” As we have learned from our studies CEO’s are strategic planners for the whole organization and this planning is what sets the stage for long term direction. I think his quote here perfectly exemplifies exactly his approach to that planning for such an ever evolving future. However that’s not to say that Mr. Stephenson hasn’t experienced his fair share of failures as well. Most recently was the rejection of AT&T’s acquisition of T-mobile by Congress stating that it would be consolidating the consumer’s choice from 4 to 3 national competitors. This failure though would come with a price tag costing AT&T 6 billion dollars which obviously is far from any laughing matter. Not to mention, much speculation was also swirling whether he would continue to be CEO with such a high loss taken including social reputation of not just him but AT&T as well. Yet CEO’s are risk takers and without risk there is no growth. More importantly AT&T is well cushioned for such losses. As he states in the letter to investors in the company’s annual 10k report, “We have invested and executed aggressively.” Technology provides opportunity and with that failure under his belt Mr. Stephenson went back to the drawing board and came back with a vengeance by reaching a definitive agreement under which AT&T will acquire DIRECTV which enables this combined company to become a distribution leader across mobile, video and broadband platforms. Jobs! Jobs were the first thing I thought about when hearing this new announcement. And I must admit I was impressed with his ability to not give up and continue to progressively move forward towards future capital and a broader customer base. I think Mr. Stephenson is a charismatic leader that inspires others to go beyond expectations. I think he possess all the traits of a great leader like drive, self-confidence and probably a need for power. Taking a look at his resume and just how quickly he moved up the chain into some of the most powerful positions in the company proves that he has always wanted to lead and not follow. In short he’s been a great asset and has proved his worth at remaining CEO of ATT&T even if it did come with a huge loss. I’m sure that loss was nothing but motivation in how he could attempt another avenue that provides even more growth and opportunity.

References
Barnes, M. (2011, March 21). Education Is Key to Winning the Future. Retrieved September 17, 2014, from http://www.huffingtonpost.com/melody-barnes/education-is-key-to-winni_1_b_837958.html
Littleton, C. (2014, May 19). Meet DirecTV's New Boss: AT&T Chief Randall Stephenson. Retrieved September 17, 2014, from http://variety.com/2014/biz/news/meet-directvs-new-boss-att-chief-randall-stephenson-1201185915/
Blodget, H. (2013, August 9). Apple, Google, AT&T Meet Secretly With Obama To Discuss Secret Spying. Retrieved September 17, 2014, from http://www.businessinsider.com/apple-google-meet-with-obama-2013-8
Knutson, R. (2014, April 7). AT&T's Plan for the Future : No landlines less regulation. Retrieved September 17, 2014, from http://online.wsj.com/news/articles/SB10001424052702304834704579403090132882148 http://www.att.com/Investor/ATT_Annual/2013/downloads/ar2013_annual_report.pdf http://www.forbes.com/profile/randall-stephenson/
Home| History| AT&T. (n.d.). Retrieved October 9, 2014.
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