Case StudyAdjustment and Adaptation --- MA Bell Style

NAME:Ammar KhanREG#:1511 - 210 - 013Course:Public RelationsProgram:B.B.ASEM:Fall 2013SUB TO: SIR Muhammad Ahmed Butt

Table of Contents

1. Acknowledgement ............................. 3 2. Case Introduction ............................. 4 3. Case History............................. 5 4. SWOT Analysis ............................. 75. Public Relations Objectives ............ 126. Public Relations Strategies ............. 137. Recommendations to the Management . 14

ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to my guide (SIR M.AHMED BUTT) for his exemplary guidance, monitoring and constant encouragement throughout the course Public Relations. The blessing, help and guidance given by him time to time shall carry me a long way in the journey of life on which I am about to embark.

Lastly, I would thank Almighty Allah and authors (Scott M. Cutlip, Allen H. Center & Glen M. Broom) of the book (Effective Public Relations) which helped me a lot in finalizing this project within the limited time frame, without them this assignment would not be possible.

Case Introduction

AT&T Corp., the largest long-distance telephone and cable television Company in the United States, has had a long and storied history from its founding in 1877 by Alexander Graham Bell and his partners, to its break-up in 1984, to its current restructuring into separate consumer, business, broadband and wireless operations.AT&T Following Alexander Graham Bell's invention of the telephone in 1876, he and his financial backers, Gardiner Hubbard and Thomas Sanders, formed the Bell Telephone Company in 1877. AT&T was incorporated in 1885 as a subsidiary of Bell, to build and operate the first long-distance telephone network. In 1899, AT&T bought Bell's assets and became the parent company of the entire Bell system.Initially, AT&T operated as a monopoly, with the grudging acceptance of the United States government. But in 1984, following the settlement of a civil antitrust suit with the Justice Department; "Ma Bell" was split into seven regional "Baby Bells." AT&T kept Bell Labs, telephone equipment manufacturer Western Electric and a long distance service. The Baby Bells got the Yellow Pages and local service.In September 1995, AT&T announced a restructuring that would amount to the largest voluntary break-up in the history of American business. AT&T remained a communications Services Company, Lucent Technologies took over systems and equipment, and NCR became a computer company.In October 2000, AT&T said it would restructure into a family of four separately traded companies, for its consumer, business, broadband and wireless operations.

Case History

Before government and media attention to Microsofts alleged domination of the software industry, may be no organizational change received as much attention as did the court ordered divestiture of Bell System. On January 1, 1984, the then-107-year-old American Telephone and Telegram split into eight separate companies: AT&T and other seven regional companies the old AT&T had been the world largest company, secure in its position as a virtual monopoly and employer of almost a million telephone people. It began with the famous words of Alexander Graham Bell, Mr. Watson, come here. I want to see you. Its transformation stands as an extreme example of system adjustment and adaptation to a changed environment.Even during the long court fight against divestiture, AT&T was planning a new structure to respond to the legal, social, economic, and technological environments. AT&Ts chairman had decided that the fight would have gone on for years with little hope of avoiding the inevitable breakups. When it happened, advertisement announced, Weve been working to make the biggest change in our lives a small change in yours.The response should have been anticipated: Theodore N. Vail, twice chairman of AT&T 1878 to 1887 and 1907 to 1920, pioneered in making the corporation responsive to its social setting. He did not fight public regulations and hired James D. Ellsworth to begin public relations program that responded to public interests. Arthur W. Page succeeded Ellsworth. Pages philosophy of public relations and corporate social responsibility endures.By the early 1990s AT&T and the other seven regional companies had broadened their missions and product lines well beyond what was once thought of as the telephone company. They manufactured computers and other communication equipment, expanded their publishing businesses, diversified their communication services, and became leaders in the generation and transmission of information. Cable television companies, other manufacturers, publishers, and the other telephone companies faced not on, but eight competitors. By the late 1990s, mergers had reduced the number of regional integrated Telcos to five, and AT&T had once again divested, spinning off its Bell Laboratories to form a new company Lucent Technologies and spinning off former cash register manufacturer NCR as a computer company. AT&T also began building high-speed fiber optics voice and data transmission networks, and even reentered the local telephone service business in 1999 by linking its operations with Times Warners millions of cable television lines.In short, AT&T transformed itself into a powerful player in a new digital, wireless, and multimedia environment. It is no longer The Telephone Company or Ma Bell. The old AT&T adjusted and adapted.It was not an easy transition, however. Longtime AT&T consultant Chester Burger recalls that in the early 1980s there were 1,700 full-time public relation specialists on AT&T payroll with a total budget of about $170 million. Much of the public relations effort was to defend the companys historic monopoly in providing telephone service and equipment that could be connected to the system. Burger concludes, however, that

1. Public Relations strategy cant overcome broad social factors.2. It is easy to convince yourself that corporate self interest coincides with the public interest.3. Technology is changing the world.Simply put, AT&T either had to change or it would have followed other corporate dinosaurs into extinction.

Strengths: Customers are displaying loyalty and satisfaction with AT&T.

AT&T is enjoying a dominant position in the industry most importantly in Telecommunication.

Company is maintaining best professional services with Vendors / Suppliers.

Labor relations with collective bargaining agents seem reasonably good.

The company is financially strong.

AT&T production and operation system are consistent with high established standard.

Weaknesses: AT&T needs to revisit their Mission and Vision & needs strategic implementation.

It needs complete redefining of objectives of Public Relations Division.

AT&T needs improvement in marketing management.

The organization needs improvement in HRM.Opportunity:

Economic conditions are conducive.

Stability is being witness in related to industry policies.

AT&T is equipped to internalize the latest technology.

International operation depicts healthy environment in the international arena.

Threats:

Public shift is taking place and the awareness level of public is more reducing the power of monster multinational corporations.

Legislations have been passed to protect the interest of stake holders.

Public Relations Objectives

Due to the loyal customers and good economic conditions its easy to make new customers and expand business.

AT&T has strong financial condition so they internalize the latest technology.

Companys product & operation consist with high standards so they work in healthy environment in international market.

AT&T can take care of social shift because they are enjoying a dominant position in telecom industry.

The policies of U.S.A telecom industry are stable therefore; company maintains reasonably good relationship with labors and bargaining agents.

The financial condition of AT&T is very good so thee firm should invest in the departments of HRM and Public Relations to make them much more effective and hire professional to overcome the problems.

The Vision and mission of the company should be redefined according to the new legislations so that the company can operate its business easily in the arena.

Public Relations StrategiesAT&T New Vision Statement:

Transforming AT&T from a long distance company to an any distance company. From a company that handles mostly voice call to a company that connect you to information in any form that is useful to you voice, data and video. From a primarily domestic company to a truly global company

Implementing a vision of a Global company\Integrating cables, wireless and long distance

Cost-cutting measure to make AT&T the low-cost provider

Cutting the workforce in its long distance business by 15000 to 18000 over two years

Initiating series of Joint ventures and acquisition to broaden the companies scope to areas

Data networking, digital voice encryption, broadband cable, video telephone and increase AT&T global reach.

AT&T aimed at Diversifying Business, Seeking Alternatives and Relying on Convergence.

AT&T saw the convergence of communications and computing industries. AT&T tried to link the different businesses to gain synergies.

Recommendations to Management

Distribute developed policies to employees and management and explain its provision to stakeholders, regulators, consumers and legislators.

Continue to provide best services at good prices.

Rates could be improved by new technology so AT&T should equip with new technology.

AT&T also needs improvement in marketing management (4ps).

In the last AT&T also require to revisit their mission and vision according to its publics so that they can handle new social shift of their customers.

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