Operation management- Evaluation of AT&T Case Solution
Company Introduction/Background
AT&T is one of the most successful companies in a field of telecommunications; it is considered to be a conglomerate business which provides vast services in a field of telephone, mobile as well as television. However, the company was incorporated in the United States in early 1875 under the inception idea given by Alexander Graham Bell. So it is said to be a largest fixed telephone service provider and a second largest combination of mobile and telephone service provider. Whatever, it is the top successful brand in Texas US today because it has a strong history back since its inception with extra ordinary revenues and profits. From its aggressive growth, recently it is the 17th largest telecom operator in the world today because of its use of advance technologies to provide better solutions for the customers and retain them in order to maintain the position within a particular market and act as a competitive force against the market giants.
Challenges faced by AT&T
There are certain problems and challenges AT&T still faces; that would not be able to increase the company's profits as well as brand reputation overtime. These challenges are given below:
Financial issues
Because of the successful introduction of iPhone and its heavy costs associated with the subsidiary, the company stills face a challenge to manage the cost as soon as possible because they sell the same phone for the price of $200 instead of $650 ($450 as a subsidiary). So it would have a negative impact on the operating profits of AT&T because a huge amount of deduction would decrease the overall financial performance of the company.
Concept of mismanagement
From the historical perspective, there are a lot of issues AT&T still faces; these issues consist of the concept of mismanagement where they have a poor record of implementing the strategies that they could deliver. Thus with the late decision-making process of the new product and technology, the company still subjected to high competition with the giants and showing the proper decision-making process. The example is the same as discussed in the financial situation of the company.
Lack of bargaining power
Thus with the lack of management's ability to quickly adopt the opportunity in the selected period, it is, therefore, indicating that the company has little bargaining power to offer the prices against the market fixed. Which means that AT&T is not in a monopolistic situation because their product prices are set by the market giants instead of fixing by itself.
Recent changes in AT&T's data plan
With the increasing trend of telecom services under high quality, AT&T is planning to increase the size of data limits where they would offer unlimited data usage to the customers in against of the fixed charges. However, these services would be free for the TV users. This change will increase the company's future performance if executed properly. In addition to that, it will allow the subscribers to enjoy high-quality video streaming of 100 hours against the charges. The main reason to increase the limits would be to boost the subscriber ratio in the future.
Another change that AT&T wants to implement is a revitalization of the management, which means that a young talent would be hired and share the new ideas of how the company would increase its bargaining power of the price. Therefore, to do that, a proper organizational structure would be followed and thus requires a decentralized structure under which each employee would have the right to share an idea. In addition to that, a re-modification of the financial structure would be implemented soon, which means that a company would be able to offer the prices they want to sell and thus manage their operating profits more than the expected...................
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