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University Audrey Dodson April 14, 2013
To gain a more in depth view of the company a SWOT analysis can be performed. the company appears to be stable and profitable. internal processes. Inc. small businesses. internet service providers. (AT&T) is the largest telecommunications company in the world based on revenue. systems integrators. Based on AT&T’s revenues. and customers. and threats.AT&T AT&T: SWOT Analysis and Balanced Scorecard American Telephone and Telegraph. AT&T’s portfolio of services and products includes broadband. 2013). product offerings. Wholesale services are also provided to carriers. The company has the largest 4G network which covers over 275 million people. wireless networks. Once the SWOT analysis has been performed AT&T is then able to use this information to create a balanced scorecard. cable providers. mobile phones. retail. . services. and corporations. The balanced scorecard helps to identify company objectives and the measures that should be taken in order to achieve them (Chang. A balanced scorecard will allow AT&T to align its vision and mission with its customer. and is the largest wireless carrier internationally serving approximately 106 million 2 wireless customers. This tool enables the company to align its daily operations with the long-term strategy and goals of the company. and Wi-Fi. weaknesses. u-verse. and learning and growth perspectives. The analysis allows the company to build on it strengths and make adjustments to weaknesses and internal and external threats (Blocher. local search. opportunities. The SWOT analysis assesses the company’s strengths. & Cokins. AT&T provides products and services to consumers. 2013). Juras. and content providers (ATT Company Information. 2012). international service plans. Stout. wireless service providers.
and threats of AT&.Company reach over 200 countries (100+ million customers) .Customer centrique strategy WEAKNESSES . and the objectives and measures used to balance financial and non-financial information to achieve the company’s goals.Well known global brand . IPhone provider .Government regulations .Limited market share (wireless segment) OPPORTUNITIES .S.Intense industry competition (Blocher. 2013) .Revenue growth (smart phones and 4G network) THREATS . opportunities. Juras.AT&T The following charts –SWOT Analysis and Balanced Scorecard-shows the strengths.Legal issues over IP relay problems . 3 weaknesses.Strong financials (wireless/wireline segment) .Global expansion . markets .Growth through acquisitions .Revenue growth (I-Phone and IPad) .Economic slowdown . & Cokins. services.Multiple products. AMERICAN TELEPHONE AND TELEGRAPH COMPANY SWOT ANALYSIS STRENGTHS .Saturation of U. Stout.
Juras.15% fiscal year end 2013 Customer Market share Customer retention New customers Reduce agent turnover by 20% end of fiscal 2013 Internal Process Innovation Customer needs New products Cross-departmental 2 new products sharing fiscal year end 2014 of information Access to training materials Access to sufficient information Build relationships w/employees Learning and Growth Employee retention Employee turnover . and distributors Product/service offerings Brand image and reputation Revenue growth Annual growth in sales + 15% fiscal year Market share by region end 2013 Markets and customers Reduce Costs Annual expenses Cost of production .AT&T 4 AMERICAN TELEPHONE AND TELEGRAPH COMPANY'S BALANCED SCORECARD Critical Success Factors Financial Objective Measure Target Initiative New products/services New customers Pricing strategy Increase revenue productivity Reduce operating expenses Improve product mix Retain current sales agents Maintain relationships with customers. suppliers.30% fiscal year end 2013 (Blocher. 2013) . Stout. & Cokins.
the company’s financial condition. By determining consumer demand. Market share is important to AT&T because it shows the percentage of the market that it holds. And it is useful in decision making as it relates to the profitability of the company. Juras. direct. innovation. Myers. A continually growth in revenue means that AT&T’s net income will also grow proportionately to revenue growth (Brealey. and it informs all employees of the company’s objectives and the initiatives and activities required to reach the company’s target and ultimate achievement of goals. Revenue growth is also a performance measure that investors use to value the company. & Cokins). and acquire more market share (Kotler & Keller. 2012). Revenue growth is important to AT&T because it is indicative of how fast the company is growing or expanding. Cash flow is a very important asset because it shows resources and uses of the company’s cash. Identifying CSFs helps guide. . new consumer needs are identified which enables AT&T discover opportunities to fill new needs of consumers. & Marcus. market share. Juras. 5 A reduction of expenses for AT& T will help stabilize or increase cash flow. and measure the success of the company. AT&T’s reduction of costs directly impacts cash flow and will help the company determine its working capital requirements (Blocher. and how well the company is using its resources. Market share also helps in determining consumer demand. & Cokins). Stout. and employee retention (Blocher. and it shows how well its products are being received in different regions. costs reduction. It is also a measure to identify cash deficits and opportunities. It shows the annual increase or decrease in sales growth.AT&T Critical success factors (CSF) are variables and activities that have to be performed well in order for a company to achieve its objectives and goals. Stout. 2012). The CSFs of AT&T are revenue growth.
better services. Financial Perspective 6 Under the financial perspective revenue growth and reduction of costs are objectives that AT&T felt would help them reach their goals of growth and sustainability. consumers are demanding new features. helps attract quality new hires. To kept customers satisfied. and lower prices. & Marcus).AT&T Innovation is important to AT&T because the telecommunications industry is very competitive with opportunities for global expansion. and it enhances productivity and employee morale. AT&T is able to increase revenue. High employee turnover increases recruitment and training expenses of the company. Revenue growth is dependent on sales. and distributors. By retaining current customers and acquiring new customers. Customer satisfaction is directly related to revenue growth. AT&T has to build relationships with customers. By reducing the costs of expenses. Customer satisfaction is directly related to customer retention. Employee retention is vital to AT&T because it lowers expenses. Myers. Because of advanced technology. 2012). AT&T is able to allocate additional cash flow to research and development to create new products or amend product lines based on customer demand (Jamshidinavid. Employee retention also boosts the image and brand of the company (Brealey. therefore AT&T must create value for customers by creating new products and increasing or amending product lines and services (Kotler & Keller. 2012). & Mrzae. internal process. Customer Perspective Customers are key in accomplishing the goals of increasing revenue and reducing costs. Chavoshani. suppliers. Revenue growth is dependent on sales. and sales are dependent on customer satisfaction. Accomplishing these objectives is contingent on accomplishing the objectives in the customer. It is important to revenue . and learning and growth perspectives.
AT&T’s revenue growth is an indicator of customer satisfaction. It is also an enabler of employee retention and satisfaction. Conclusion The SWOT analysis for AT&T is a method for sorting out its internal strengths and weaknesses and the impact of external factors as opportunities and threats. Satisfied customers will continue purchasing AT&T’s products and services (Jamshidinavid. Chavoshani. Innovation for AT&T is enhanced by the sharing of information cross-departmentally.AT&T growth for AT&T to retain its current customers and attract new ones. Satisfied employees will be more productive. The entire organization understands the objectives and the measures needed to achieve goals (Chang). Customer retention and acquisition of new customers are necessary to increase market share and increase revenue. AT&T’s innovation objective ties in with this perspective because the creation of new products and services is the result of understanding consumer needs and satisfying those needs. & Mrzae. Internal Process Perspective The internal control perspective helps management to see how well the business is operating and whether their product offerings and service offerings meet customer demands. Learning and Growth Perspective The sharing of cross-departmental information allows employees to have access to pertinent information needed to perform jobs and increase productivity. It allows the 7 . Employees are an important resource for revenue growth. 2012). AT&T’s revenue growth is a testament to the satisfaction and productivity of their employees (Chang).
make adjustments or corrections for weaknesses. & Cokins). Juras. It shows the connection between the financial perspective and customer. to take advantage of opportunities. and learning and growth perspectives. . and plan and set targets (Blocher. Stout.AT&T company to use its strengths to increase its competitive advantage. AT&T’s balanced scorecard allows the company to use financial and non-financial information to align and balance internal and external measures. and performance and drivers of performance. objective and subjective measures. communicate its strategy. internal process. The balanced 8 scorecard is an asset that allows AT&T to clarify its strategy. and to alleviate or deter threats.
Upper Saddle River.. (2012).AT&T References AT&T Company Information. Myers. Stout.com: http://www.proquest.). Fundamentals of corporate finance (7th ed. & Mrzae. 8(2). S. R. B. G. Chang.. . Brealey. Chavoshani. C.. Retrieved from att. P. Retrieved from http://search. Juras. E.com/docview/1312295482?accountid=12085 Kotler.. (2012). (2013).att. Journal of Global Business Management. P. 28-39.. 2(4). & Keller. M.. L. K. NY: McGraw-Hill/Irwin.. 202-214. New York.). NJ: Prentice Hall. Cost management: A strategic emphasis (6 ed. D. Retrieved from http://search. K.. & Marcus. A performance evaluation of telecommunications company in Province of Elam based on balanced scorecard (BSC) from 2006 to 2011. Verification of the effects of balance scorecard implementation on a company's financial performance: Using intellectual capital accumulation as the mediator. (2013). Journal of Advanced Social Research. J.com/docview/1312295482?accountid=12085 Jamshidinavid.proquest. Marketing Management (14 ed. New York: McGraw-Hill/Irwin. & Cokins. (2012). (2012).).com/gen/investorrelations?pid=5711 9 Blocher.
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