Strategic Choice and Evaluation 1
Strategic Choice and Evaluation 6
Strategic Choice and Evaluation: Verizon
Qassam AlshaikhSTR/581
February 26, 2015
Christina BehlingStrategic Choice and Evaluation
The directors of Verizon management are looking to create and develop new strategies for Verizon and needs some ideas to improve the company. The Board of Directors and the strategic planners has asked to maintain several strategies that will help take the company to a new road. Following these strategies recommendations of the best strategy will be selected based on the research and information about Verizon. And to increase company growth and build revenue it is important to determine efficient strategic choices, analysis, and evaluation that help the company create development. Making a good strategic choice can help a company evaluate alternatives in order to realize growth.
New Strategy Options
The directors of the company know that it is necessary to become more profitable and to develop a new strategy to keep the company strong, increase the firm resources, and increase profits. The board management of the company has been selected three options that help them to create success and to be in the right direction.
First the Generic strategy will allow the management to have a competitive advantage over its competitors and also will help the company to increase the generic. Differentiation strategy is an option for Verizon to develop the company’s services so that it can offer and provide value, quality, and new services to its customers. Differentiation considers a key and a unique achievement in the market because it will keep the company gain advantages over others communication firms, create the right information, and to be strong to achieve the competition. This strategy can help Verizon to reach customers and provide them support and assistance.
The second option is the Value Discipline Strategy. This value discipline strategy will help the Verizon to providing customer value. Value discipline will reduce the cost, increase productivity and assist in increasing bargaining power with suppliers. This strategy will provide efficient communication services, focus on customers, create consumer revenue growth, and create customer’s satisfaction. This strategy also can increase the services efficiently by pursuing sale of its directory business. One of the value disciplines that will work for this company is operational excellence. Operational excellence can help the company to corporate better by focusing efficient operations. This strategy will help Verizon Company to establish a system to collect input from customer’s points, to create customer’s insights, decisions, and decrease cost where needed. This option can also help the company to make social media, market analytic, and network operation. Operational excellence can create differ.
1. Strategic Choice and Evaluation
1
Strategic Choice and Evaluation 6
Strategic Choice and Evaluation: Verizon
Qassam AlshaikhSTR/581
February 26, 2015
Christina BehlingStrategic Choice and Evaluation
The directors of Verizon management are looking to create and
develop new strategies for Verizon and needs some ideas to
improve the company. The Board of Directors and the strategic
planners has asked to maintain several strategies that will help
take the company to a new road. Following these strategies
recommendations of the best strategy will be selected based on
the research and information about Verizon. And to increase
company growth and build revenue it is important to determine
efficient strategic choices, analysis, and evaluation that help the
company create development. Making a good strategic choice
can help a company evaluate alternatives in order to realize
growth.
New Strategy Options
The directors of the company know that it is necessary to
become more profitable and to develop a new strategy to keep
the company strong, increase the firm resources, and increase
profits. The board management of the company has been
selected three options that help them to create success and to be
in the right direction.
First the Generic strategy will allow the management to have a
competitive advantage over its competitors and also will help
the company to increase the generic. Differentiation strategy is
an option for Verizon to develop the company’s services so that
it can offer and provide value, quality, and new services to its
customers. Differentiation considers a key and a unique
achievement in the market because it will keep the company
2. gain advantages over others communication firms, create the
right information, and to be strong to achieve the competition.
This strategy can help Verizon to reach customers and provide
them support and assistance.
The second option is the Value Discipline Strategy. This value
discipline strategy will help the Verizon to providing customer
value. Value discipline will reduce the cost, increase
productivity and assist in increasing bargaining power with
suppliers. This strategy will provide efficient communication
services, focus on customers, create consumer revenue growth,
and create customer’s satisfaction. This strategy also can
increase the services efficiently by pursuing sale of its directory
business. One of the value disciplines that will work for this
company is operational excellence. Operational excellence can
help the company to corporate better by focusing efficient
operations. This strategy will help Verizon Company to
establish a system to collect input from customer’s points, to
create customer’s insights, decisions, and decrease cost where
needed. This option can also help the company to make social
media, market analytic, and network operation. Operational
excellence can create different aspects, such as to attend the
information, network activities, leads to lower production cost,
and improve the overall organization cost strategy.
Grand Strategy is the third strategy that will provide the board
of director’s management the power of leadership a competitive
advantage over its competitors. The grand strategy is to help the
organization accomplish the long- term goals of the company.
This strategy will help the company to focus on service
development and also to create the competitive position through
concentrated growth of the company that supports the grand
strategy. Service development is critical to stay stable with the
needs of the consumers. By using the Grand- service
development strategy can help the company to be able to focus
its attention on developing a process and having a competitive
edge over its competitors. Innovation is very necessary
specially, when they go through transition period and modify
3. their business strategies. In that way, they found a high level of
competitive advantage can increase the expectation level of
their customers and find ultimate existence.
“The network architecture provides the company with the
flexibility to adapt its facilities more easily to future product
development. “ (Verizon Wireless Interactive Timeline, 2014)
These options will help the directors of the company to
achieving the objectives for the company and to creating new
opportunities
Recommended Strategy for Verizon
Verizon Communication Inc. should seek to increase its services
actively by pursuing sale of its directory business. It is
important for the company to continue to create the sale of rural
access lines that can help to increase cash for returning value
and for a combination of debt. The directors of Verizon should
focus innovation to enhance the profitability of the company
and also can increase the company chances to face competitors.
The company needs to increase customer satisfaction, increase
surveys to perceive customer’s decisions. Verizon needs to
offers services to support the clients, such as application
infrastructure, IT professional services, business continuity
services, and create low prices.
The service market strategy assist the company to develop
services that will achieve the needs of the consumers and make
them satisfied. Verizon needs to use different methods to
increase their business circle, such as change the process of
their business, must keep modernizing their products and
services to use new ways of technology, and to provide best
customer services to their clients. Through the external and
internal environment of Verizon, we noticed that the company
faced difficulties in innovation and technologies and also
Verizon faced a huge level of threats in the sector of
innovations. Thus, it is important to develop programs and to
make training for their workforce employees because this can
develop programs and educate their employees about new
4. technologies.
My recommendation also to Verizon is to focus on is to increase
the amount of stores in rural areas that do not have larger stores
to provide more services. These distribution strategies can also
increase the amount of inventory and to provide connection and
services to each house or store more quickly. Verizon
investments would be efficient and can create effective long-
term goals for the company.
Conclusion
Different business strategies were presented to the board of
directors and way of giving some ideas on what corporation can
do to have a competitive advantage over competitors in the
marketplace. The new business strategy was recommended to
the board of directors as the grand – product development
strategy. This new business strategy will assist in meeting the
new market demand and be ready each time to respond to
current and new homebuyers’ wants and needs.
After reviewing the three strategies, the company should focus
on one strategy to create an efficient implementation. All
strategies will help the company to create promotion and
growth, but it is important to focus on one to create success.
The strategy that would be efficient for Verizon is that to focus
on opening two more distribution centers.
“If a company does not find the solutions of these problems
then these problems affect their business very badly and it
rotten not only the performance level of its employees, but
create bad impression for its name.” (Verizon Communication
Inc., 2013)
This new business strategy will assist to respond to client’s
wants and needs. In addition, the new strategy will meet the
new market demand.
5. References
Verizon Wireless interactive Timeline. (2014). Available from
EBSCO Host. (No. 100453685) p1-10. 10p –University Library
EBSCO Host
http://web.b.ebscohost.com.contentproxy.phoenix.edu/ehost/pdf
viewer/pdfviewer?vid=7&sid=1e6b6136-d81a-4d9d-9a3a-
bcc828f1e485%40sessionmgr111&hid=102
Verizon Communications Inc (2013). Retrieved Feb 22, 2015,
from www.verizon.com:
http://www.mergentonline.com.ezproxy.vccs.edu:2048/company
detail.php?compnumber=36979
Strategic Plan and Presentation
Resource: Implementation, Strategic Controls, and Contingency
Plans assignment with facilitator feedback
Complete a strategic plan for your organization of no more than
3,500 words.
Update your plan to incorporate facilitator feedback from the
drafts you submitted in previous weeks. Include the following:
· Table of contents
· Executive summary, with a 2-page maximum
· Company background, Conlsuion- organizational mission,
vision, and value statements
· Note. For a start-up, you should focus on the backgrounds and
accomplishments of key anticipated management personnel. The
6. goal is to convince the investor that these individuals are
trustworthy and successful.
· Environmental scan
· Review of Week 4 strategies and a recommendation for the
best strategy for your organization
· Implementation plan including contingency plans for
identified risks
Prepare a Microsoft® PowerPoint® presentation of no more
than 10 slides with speaker notes. Your audience will play the
board of directors or a venture capital firm. The focus is to sell
your recommendations to the board or venture capital firm and
obtain approval for funding your plan.
Format your plan and presentation consistent with APA
guidelines.
Click the Assignment Files tab to submit your assignment.
The power point will be a summary of key points with your
speaker note for say the employees of the company. Last week
we read about embracing change, so act as if the PP is your tool
to share with the employees/organization to explain the changes
as well as the benefits. Also consider supporting the company's
vision that you created or revised in week 1 or 2.
Guidance of Final Paper:
Class:
The final strategic plan incorporates all the work you have done
in prior weeks' assignments as well as a few new items. Be sure
you are updating your prior work with feedback given. It is
important that you are not just copying and pasting prior work.
Make sure you go through this plan and it is the quality you
want to show as your capstone work for the program.
7. You will add an Executive Summary to the strategic plan. If you
haven't done an Executive Summary before, check out the
description and sample in the Writing Center. It is NOT the
same as an introduction. You should provide the Board of
Directors with all the key information they need to make a
decision.
PowerPoint Presentation
Also due this week is a PowerPoint presentation that sells your
strategy to the leadership of your organization. You will need to
make sure your presentation is persuasive. So how do you make
things persuasive? Well you support them with the facts. You
should have solid fact based research from your external
analysis that supports the strategy you are recommending.
Again, you want to give them the key information - how much
will it cost to implement the strategy? How much money will
be made as a result of the strategy? How long will it take to
implement?
Please put the strategy and submit the paper tomorrow in the
morning. I need strategy and I will send you my papers of week
4 and five to help you continue the strategy.
I need content on the MS word for two ages and summary of
two pages. Provide break even chart in the paper.
Implementation, Strategic Controls, Contingency Plans
1
8. Implementation, Strategic Controls, and Contingency Plans:
Verizon
Qassam Alshaikh
STR/581
March 7, 2015
Christina Behling
Implementation Plan
Based on the operating income, Verizon Company considers the
most profitable wireless and communication that provides
benefits in the United States. Their mission is to continue to
implement the key factors of their strong business strategy of
global differentiation.
A differentiation strategy can create a service or product that is
identified and perceived as being unique in the industry. This
strategy can create a strong distributor network for other
aspects, new technology, and provide services. In addition, the
conditions that should involve to support a differentiation
strategy include effective product engineering, strong marketing
abilities, and the ability to perform basic research and a good
reputation. This strategy relates to Michael Porter's book -
Competitive Advantage.
Differentiation strategy is the strategy that will help the
9. company to create efficient implementation plan. The company
is providing a high-quality service that is designed to meet the
growing needs of the customers. The company’s strategy share
entails a global dimensions as it is a joint venture of Verizon
communications covering a population of 260 million within the
United States, and Vodafone Group, which is the largest mobile
telecommunications network company in the world. Verizon
continues to fulfill all of the company’s promises and is proud
of the growing expansion within the wireless industry. The
following objectives explain how Verizon Wireless can build on
their business strategy to provide superior service. In order to
be able to differentiate their service from other competitors.
Verizon Wireless tries to accomplish these objectives:
· Efficient distribution that involve organizational sales, full
services, and distribution channels.
· Provide the highest network quality through CDMA (Code
division multiple access) technology.
· Improve data transmission rates through EV-DO (evolution
data optimized technology.
· Continue to expand the wireless data, messaging, and multi-
media offerings for both customer and business segments.
· Focus on efficiency and satisfaction rates in customer’s
services, distribution, and product development divisions.
The Generic strategy will allow the management to have a
competitive advantage over its competitors and also will help
the company to increase the generic. Differentiation strategy is
an option for Verizon to develop the company’s services so that
it can offer and provide value, quality, and new services to its
customers. Differentiation considers a key and a unique
achievement in the market because it will keep the company
gain advantages over others communication firms, create the
right information, and to be strong to achieve the competition.
This strategy can help Verizon to reach customers and provide
them support and assistance.
Functional Tactics
The functional tactics consider the procedures that help
10. the company to take place and to help start the plan process.
The buyer power that used by Verizon is very high and Verizon
is seeking to reduce the buyer power by making a competitive
advantages that will attract many customers to thank innovation
of their services, and the quality of their features like GPS
system. Also Version will take the action to improve their
customer services and provide a high network quality through
new technology like EV-DO that improves data transmission
rates and crates a competitive advantages in this buyer power
industry.
Action Items, Tasks, Development, Milestones
Verizon will seek to provide different services of wireless
devices and telephone to increase their clients. These services
involve different offers, such as sizes, colors, and new system
of telephones. These devices can increase wide range of
targeted users and will create high satisfaction.
Verizon will determine to create efficient distribution through
offering sales and full services. The company can use these
distribution actions:
· Distribute the services or products to the retailer’s.
· Using self-services retail methods of distribution
· Using direct sales that involve the house sales, Internet, and
Facebook.
· Using all distribution channels to facilitate the advertising.
Another action plan will be developing innovation. The
technology help people to use labtops and paid wireless network
services of free communication.Verizon made skype programs
that can be used through the world by providing the advantages
features, a visula image, and no cost telecommunication serivce.
Due of competions, Verizn decided to make charges fees and
create contract to lower the threat of subsitute services or
products and to prevent losing clients to another competion.
Verizon implement the action plan by reducing the prices to
satisfy customers. The reduction of pricing can help the
company to face the competition.
11. To create succesful results, the company must create efficient
tasks. The company leadership seeks always to create success.
The company has been rewarded for creating their mission to be
efficient and powerful. These tasks involve:
· The leadership promote customers satisfaction
· Consider the top for diversity.
· Leader in loyalty
· Training the staff
Also the e-commerce allows Verizon to create the relationship
with millions of their consumers, customers, and companies
from all over the world. The technology allow the company to
gain benefits.
Marketing task:
To create Differentiation strategy, a company must promote
efficient marketing task. The efficient distribution channels can
create financial stability, utilization, and the effectiveness of
services. For example, advertising channels can create
relationships demonstrate the benefits of the offering, support
capabilities, and make relationship withdistributors and can
help to make appropriate prices due of competition.
Verizon determines to deal with the market research and
marketing needs. Verizon strives to develop the technologies
and concerns of development. Most of its services are offered
in the smaller rural markets and most customers agree that its
new technologies apply their needs, such as CDMA network,
all-digital nationwide, and VoIP that relate to voice over
internet protocol. Verizon seeks to keep market efficient by
downloading software into clients’ computers that customer
may not know about it.
This strategy will help the company to focus on service
development and also to create the competitive position through
concentrated growth of the company that supports the strategy.
Service development is critical to stay stable with the needs of
the consumers. By using the development, the owners can help
the company to be able to focus its attention on developing a
process and having a competitive edge over its competitors.
12. Innovation is very necessary specially, when they go through
transition period and modify their business strategies. In that
way, they found a high level of competitive advantage can
increase the expectation level of their customers and find
ultimate existence.
“The network architecture provides the company with the
flexibility to adapt its facilities more easily to future product
development. “ (Verizon Wireless Interactive Timeline, 2014)
Milestones for The Verizon will involve obtaining financing,
building the facility, setting up a corporation, support training,
opening the facility, and leasing the equipment. In order to do
profitable and dependable tasks, it must always look for new
types of innovation that can help to make differentiation
strategy and face the competitors. Different needs for training
and expands wireless networks can make Verizon create more
changes.
Organizational Change Management Strategies
To implement this strategy the company needs to look at an
organizational change management strategy. The company to
develop services that will achieve the needs of the consumers
and make them satisfied. Verizon needs to use different methods
to increase their business circle, such as change the process of
their business, must keep modernizing their products and
services to use new ways of technology, and to provide best
customer services to their clients. Through the external and
internal environment of Verizon, we noticed that the company
faced difficulties in innovation and technologies and also
Verizon faced a huge level of threats in the sector of
innovations. These changes can help managers to observe
customers more confident and satisfied and also the services
will be easier for managers and employees.
It is important to develop programs and to make training for
their workforce employees because this can develop programs,
face hard completions, and provide experiences to employees
about new technologies.
These distribution strategies can also increase the amount of
13. inventory and to provide connection and services to each house
or store more quickly. Verizon investments would be efficient
and can create effective long-term goals for the company.
Financial Control
Pricing
It is important to implement financial plan that help Verizon to
make a comparable pricing strategy. Verizon is not the only
market leader in the market so it important to create a price
expectation. Leaders have to create a price expectation in the
minds of the marketplace. Thus, the company can offer
comparable of their competitors. The leaders can create rapid
market penetration for eventual market control and critical
income by decreasing prices to be low.
The Budget
The budget is very important to manage the project and to
create changes in the company. The budget can facilitate the
action items and help to achieve commotions strategy. The
company needs the budget to promote the operations efficiently
by providing sessions, new locations, and create new connection
with customers.
Verizon should focus on budget operations that will running the
business and getting the new facilities open. In order to meet
the needs of the budget, the operations managers will need to
manage the budget, such as distributions, advertising, new
locations, new innovation, and employees’ raining. These
operations can help Verizon to create success and efficient
differentiation strategy.
According to the researches, Verizon raised $49 billion in debt
to help pay for Vodafone's 45%. Verizon also closed the
acquisition in 2014 for $130 billion. The cash flow from
operations fell 21%.
The budget involve:
· Revenue $21.5b in 2013
· Revenue of the company is $31.5billion in 2014
· 32.5 Million for customers services
14. · Spent 12 billion in 2013 to build out fiber plant (DSL)
A detailed budget provided help Verizon strives to find
resources to add benefits and revenues. The budget can build
control innovation in its networks.
Conclusion
After defining the strategy, the company must use these
information that gathered to ensure that this strategy will
achieve the objectives of making competitive in the market. The
strategy is a guidance for the directors to make market growth
and a final decision for achieving the goals and increase the
company success.
15. References
Verizon Wireless interactive Timeline. (2014). Available from
EBSCO Host. (No. 100453685) p1-10. 10p –University Library
EBSCO Host
http://web.b.ebscohost.com.contentproxy.phoenix.edu/ehost/pdf
viewer/pdfviewer?vid=7&sid=1e6b6136-d81a-4d9d-9a3a-
bcc828f1e485%40sessionmgr111&hid=102
Verizon Communications Inc (2013). Retrieved Feb 22, 2015,
from www.verizon.com:
http://www.mergentonline.com.ezproxy.vccs.edu:2048/company
detail.php?compnumber=36979
Pearce, J. A. & Robinson, R. B. (2013). Strategic Management:
Planning for Domestic and Global Competition (13th ed). New
York, NY: McGraw Hill.
16.
17.
18.
19. public review. Leadership must take the necessary steps to
make customer service and customer satisfaction a fluid concept
within the culture of Blue Dolphin Charters.
Verizon Singular AT & T Wireless Sprint PCS T-
Mobile Others 28 17 16 11 8 6.5
20. Research Proposal
1
Research Propsal
Qassam Alshaikh
STR/581
February 14, 2015
Christina Behling
Research Proposal
Verizon Communications is American based company whose
headquarter in in the prominent city New York, it deals in
mobile business. It gives services of broadband and
telecommunications. “Verizon Communications is one of the
largest telecommunications providers in the world.
Headquartered in New York, Verizon's global network reaches
customers in more than 150 countries and services over 100.0
million Americans.”(Verizon Communcication Inc., 2015)
the major sector in which it deals are
21. · 4G LTE network
· 3G network
· Information services
It reestablished in 2001, under the name of Verizon before it the
company is established in 1983 and that time it was Bell
Atlantic Corporation. It is a public company and the
predecessor of it is American telephone and telegraph company.
The company came into being in 7th October 1983. The main
products of the company is
· Network Services
· Mobile telephony
· Global Internet
· Broadband service
· Digital television
The basic working area of Verizon Communications Inc. is
communications services and they provide it in a good way.
According to IBIS World, (2014), “However, internet access
revenue has experienced consistent growth. In the five years to
2014, IBISWorld expects Verizon's industry-relevant revenue to
increase at an annualized rate of 6.0% to $9.9 billion.”(Verizon
Communcication Inc., 2014)
Verizon gives these aspects of
· Wireless
· Line services
· Digital services
They provide their activities to
· Customers
· Markets
· Government
The company also gives solutions of the problems that relate to
these sectors like:
· Network
· Internet
· wireless voice,
· data services
· Network
22. · Video data
· Internet access
Verizon provides different level of services into these sectors
· converged communications,
· information
· entertainment services
They provide their service through fiber optic network almost
all over the US. The company offer services and different
business solutions to the customers who live other than US
region like they work round about 150 countries of the world.
“Verizon Communications Inc. is engaged in providing wireless
and wireline communications services, including voice, network
access, broadband data and video services, and global internet
protocol (IP) networks.”(Verizon Communcication Inc., 2014)
The areas include:
· The Middle East,
· African countries
· Countries of Asian Pacific range
Vision
There are two types of Vision Statements of the company first
belongs to company’s actual vision and second is its proposed
statements
· Actual Vision we decided that our main goal is to design and
manufacture more advanced and innovative brand in the field of
communication.
· Proposed Vision “it belongs to our basic goal that we want to
create world’s most and respected brand in the field of
communications in which we use latest technology of that time.
It is innovative and keep our customer in touch with us with
the help of our service.”
Mission Statement
There are two types of the company’s mission
· Actual Mission Statement of the company
They decided to makes people empowered and their businesses
too so that it communicate with each other. We are also
bounded to provide full range of communication that we open
23. for our customers, investors and employees too.
· Proposed Mission Statement
Our company’s proposed mission is to keep stable our
leadership in the field of communications with the help of
stretching our boundaries continuously in the sector of
technology and giving our customers those means to
communicate they never thought them before.
Strategic Plan
The company designs its strategies into two sectors like in
communication sector and wireless sector
· Strategies for communications
· For communication they used to bring fiber optics into their
company
· Make their customer service according to latest digital age and
matched it continuously
· Strategies for wireless
· They decided to build an open network so that everyone easily
access it and used it
· They make plan to expand their working area and provide its
working to other region and territories
· Business level Strategies
The company business strategy is changed because it is based
up on company’s operating income. The reason behind it is that
the Wireless section of Verizon is much profitable in the field
of wireless communications and best among those which
provide their services in United States and the core goal of the
company is to continually implement all their key elements for
their business strong and make strategy to make it no.1 in
global world with distinction. The main objective of the
company is to give sophisticated and high level service in
quality vise that designed specially to meet the needs of their
customers according to changing trends.
The company basic strategy is demanding a global volume then
they decided to build a joint venture with Vodafone through this
venture they covered 260 million population within the United
States. This venture continuously fulfill the promises that they
24. made when they start their venture plan and both companies are
now feel proud upon themselves because their business are
grown and expand its workings area within the increasing
wireless industry.” (Verizon Wireless Interactive Timeline,
2015)
They give some unique services that make them differentiate
among other competitors in the field of services, in that term
they make some objectives for them:
· Provide high quality of network
With the help of CDMA [code division multiple access]
technology we achieve high level of networking
· Improve data transmission
With the help of EV-DO (evolution and data optimization
technology) they easily achieved this goal
Recources of Internal and External Environmental Analysis
The following resources will be used to make internal
environmental analysis and external environmental analysis of
Verizon.
· Verizon Wirless interactive Timeline. (2015).
· Verizon Communications Inc. - Financial and Strategic
Analysis Review. (Global Data, October 2014)
· Financial Status Of Verizon Communication Management
Essay. (Essays, November 2013)
· Verizon Communications SWOT Analysis. (Verizon
Communication Inc. SWOT Analyis, October 2014)
· Verizon Wirless interactive Timeline. (2014). Available from
EBSCO Host. (No. 100453685) p1-10. 10p
References
25. Verizon Wirless interactive Timeline. (2015). Retrieved Feb 02,
2015, from
www.investor.verizon.com.::
http//investor.verizon.com/profile/history/
Essays, U. (2013). Financial Staus Of Verizon Communication
Manangment Essay. Retrived from
http://www.ukessays.com/essays/managment/finacial-status.of-
verizon-communication=managment-essay.php?cref=1
Global Data. (October 2014). Verizon Communication Inc.
Financial and Strategic Analysis Review. Sector Publishing
Intelligence. Retrived from Verizon Communicatios Inc. –
Financial and Strategic Analysis Review
Verizon Wirless interactive Timeline. (2014). Available from
EBSCO Host. (No. 100453685) p1-10. 10p –University Library
EBSCO Host
http://web.b.ebscohost.com.contentproxy.phoenix.edu/ehost/pdf
viewer/pdfviewer?vid=7&sid=1e6b6136-d81a-4d9d-9a3a-
bcc828f1e485%40sessionmgr111&hid=102
External and Internal Environmental Analysis
1
26. External and Internal Environmental Analysis
Qassam Alshaikh
STR/581
February 16, 2015
Christina Behlin
External and Internal Environmental Analysis
Verizon Communications is American based company whose
headquarter in in the prominent city New York, it deals in
mobile business. It gives services of broadband and
telecommunications. “Verizon Communications is one of the
largest telecommunications providers in the world.
Headquartered in New York, Verizon's global network reaches
customers in more than 150 countries and services over 100.0
million Americans.”(Verizon Communcication Inc., 2015) This
paper will be an external and internal environmental scan of
Verizon Communications. The scan will be used to focus and
analyze the important factors of the internal environment that
involve the strengths, weaknesses,and opportunites. This scan
will also identify with the external reources that involve threats,
opportunities, and external global environments. The
organizational structure that Verizon Communications has will
27. be discussed and analyzed.
Industry
Verizon does not focus to create their own shows or writing
their own gaming strategy, or does not interested in making
movies. It does not create any media appearance; instead we
have focused the strategy how we deliver information and how
we develop the communication medium for people. In addition,
Verizon creates right applications that carries these
information’s that they easily accessible for customers.
Remote
The remote environment is important for Verizon
Communications through different aspects, such as economic,
social, and technologial factors. Economic factors play an
important part in the remote environment for Verizon
Communications because the better the economic factor rate is
good, the better the company will do efficient results. Social
factors also play an important role in the remote environment.
Social factors are important to the company because it impacts
both negatively and positively in the business of the
company.Technological factors also will impact the company
because it considers as major factor of competitive advantage
and then establish the superiority of rival companies.
Social, economic, technological, and cultural factors of the
VERIZON Company.
Economic Factrs:
Economic factors play the key role in Verizon communications
Inc. because economic conditions change the business picture in
the twinkling of eyes. These factors create hurdles into the
smooth running of Verizon business. The previous research that
is exist tell that this company always care of judging these
factors that create troubles to smoothly run their business.
1. Inflation: Economic factors consist of inflation it affects the
business when its rate is high, in this situation prices are
increased the reason is that supply of money is at high pace and
customers did not afford it.
28. 1. Balance of payment: if company import raw material at high
rate or large in number and its export or ratio of service is less
then heavy amount of capital goes outside and BOP level is
detract
1. Fiscal and Monetary policies: fiscal and monetary policy is
also affects company economic structure
Social Facotrs
Social factors are used by Verizon communications Inc to assess
· income resources of its promising customers,
· social framework,
· educational level,
· religion aspects
· family structure
These factors impact both negatively and positively in the
business of the company. In 2015, Verizon's wired fiber-optic
network provides access services in many states and the
operations provide services to residential and small business
subscribers.” (Verizon Communcication Inc., 2015)
Social factors changes the
· beliefs,
· interests
· customer’s mind
Technological Factors:
Technological factors nowadays examined as major factor of
competitive advantage and then establish the superiority of rival
companies. Globalization is the big issue and badly changed
under new technologies and then boosts all marketing activities.
Computer is the key aspect of Verizon communications Inc.
introduction of e-commerce change the business scenario of
Verizon communications Inc. and with the help of it company
discover new markets globally. Technologies are now
considered as lifesaving drugs for company’s business costs and
time. With help of this factor company grasp profits and saved
funds.Electronic financing facility that Verizon communications
gives it carry out company’s business very smoothly without
29. any interruption in cash flows. (Verizon Wireless Interactive
Timeline, 2015)
External Environmental Analysis
External environmental analysis is a key part in the external
analyzes of Verizon Communcication Exteranl environment that
inovle opportunities, threats, and globalization will make the
business successful or failure. The external environment is a
way for the company to build a good benefits and increase
customer loyalty towards the company. Within this environment
Verizon will own the power to declining or growing over time.
Opportunities:
For companies when the decided to achieve the set objectives,
then they identify the sectors where in their point of view
chances for their business and these devise factors or features
that comes from the external environment of their business will
give them edge and volume and give them some advantages or
we can say some chances to perform into well-mannered style as
compare to their competitors. “Verizon's global network reaches
customers in more than 150 countries and services over 100.0
million Americans. The telecom giant operates in two segments:
wireless and wireline. Only wireline operations are relevant to
the Internet Service Providers industry.” (Verizon
Communcication Inc., 2014)
Verizon communications Inc. has some vast range of
opportunities that if they utilize it in effective way no doubt,
they will be achieve huge benefits as compare to other firms
because it lead them in exploring and the reaching to other new
markets. “Verizon provides M2M support services for a variety
of vertical market segments, including healthcare, education,
manufacturing, utilities, distribution and consumer products.
Verizon offers platform-based solutions tailored to specific
industries to enable value creation and new commercial business
models.” (Verizon Communcication Inc., 2014)
Different level of Research points out that huge level of demand
is found in these products in Africa and management of the
company will decided to open different level of subsidiaries in
30. these countries but after keen analysis of the situational
analysis in these markets. (Verizon Communication Inc., 2013)
Threats:
Verizon communications Inc. faces new regulation that can
restrict its abiity to promote in the market and also limit its
future investments in the market. “Changes in the regulatory
framework under which the company operates could adversely
affect its business prospects or results of operations.” (Verizon
Communcication Inc., 2014)
Globalization is also big factor of new inventions and raises the
competitive level of business world. Therefore Verizon, is faced
huge level of threats that they faced in the sector of
innovations, for example if they do not trained their workforce
and therefore they develop programs to educate their
employees about new technologies
Competitive Position
Verizon determines the differentiation strategy and also seeks to
providing diverse services and products through different areas,
such as fiber-optic communications, high –speed, 3G-networks,
telephone, and TV serves, high-speed of Internet.
Another factor that also adds to Verizon's competitive edge is
that their products and services are known for better quality and
efficiency. “Verizon's operating margin was at 26.5%.
Comparatively, AT&T's revenues grew at a slower pace of 1%
in FY2013.” (Verizon Communcication Inc., 2014)
Verizon Structure
Verizon provides responsibility and quality servides to people.
The company structure depend on efficient strategic planning
that corporate the success and benefits to the company. Also,
the company determine the quality objectives and goals.
The human resources mananmgnet and Labor Relations are tow
important factors that can impact servide quality. The
management relationships impact the quality measures in
telecommunications and its employees.
Internal Environmental Analysis
31. Strengths:
All organizations used modern technology and innovation to
change its production style. They transform themselves, they try
to reinvent them in the map of world, all heads of the company
wanted that they go through with a smooth transition and they
also try to modify the style of their services and change and
improve the way through which they make their products best
among others. They always keen about market needs and
demands of their customers. (Verizon Communication Inc.,
2013)
Weakness:
Substantial debt
According to the substantial debt. (2013) Verizon had
approximately $93.6 billion of outstanding indebtedness and
also in the end of March 2014, the company’s average debt
outstanding stood at $103.2 billion, this increase occurred due
to the acquisition of Vodafone’s 45% stake in Verizon Wireless.
This will also is expected to lead to higher interest expense and
further increase the debt reduction. “According to industry
estimates, the company’s adjusted debt balances are expected to
be around more than $125 billion at the end of 2014.” (Verizon
Wireless Interactive Timeline, 2014)
High rate of substantial debt will increase the vulnerability to
be subject to recurring interest payments, declining cash flows,
and adverse cycles of Verizon. The company’s high level of
debt obligations could lead to the diversion of its cash flows
from operations, support its expansion plans, and to influence
its ability to obtain additional financing. “as Verizon will be
subject to recurring interest payments. In lieu of higher debt,
the company's interest expense increased from $2,571 million in
FY2012 to $2,667 million in FY2013.” (Verizon Wireless
Interactive Timeline, 2014)
SWOT Analysis
Modern businesses usually faced different level of problems
32. that they faced it as the business environment changed during
today competitive world and due to business environments that
is changed on daily basis. Therefore Verizon communications
Inc. is how not affected with it so they have to face different
level of changes within the changes context of their business.
To do the SWOT analysis, we first overlooked the
environmental analysis because it plays a crucial role in the
analysis of corporation business norms and it is usually
consisting of two sectors;
· the external environment
· internal environment
SWOT Analysis
Key Internal Factors
Weight
Rating
Score
Strengths
Wireless system is Durable and Reliable
Establish marketing and branding awareness
Corporate business strategy
Financial position
Advance in fiber network filed
0.20
0.12
0.12
0.08
0.05
4
4
3
3
3
33. 0.80
0.48
0.36
0.24
0.15
Weaknesses
Concentration upon demographical zone
Use of CDMA Technology
Access Lines are declined
Limited in providing TV services
Complicated Fee structure
0.15
0.15
0.05
0.05
0.03
1
1
2
2
1
0.15
0.15
0.10
0.10
0.03
Total
1.00
2.56
·
External Factor Evolution
34. Weight
Rating
Score
Opportunities
Increase the level of applications regarding wireless broadband,
percentage of capital expenditure for growth ventures, reduce
debt load
Cost structure in line with revenues
Price reduction policy
Support online activities
Expand market size
Advance in fiber network filed
0.13
0.12
0.12
0.09
0.12
4
4
3
2
1
0.52
0.48
0.36
0.18
0.12
·
Conclusion
35. Verizon communications Inc. is now consider the leader of
current Wireless and IT solutions market leaders. It is a name in
the market of information technology industry. It creates huge
amount of market share and make them a brand name whose
products are keeping high quality.
The management of the company should check its market
strength and make plans to achieve a good future of the
company, and raised both its new and loyal customers. They
also focused upon all needs and fulfill the expectations of their
customers. So, they have to construct and a vast range of IT
solutions products and adopt effective strategies, so that they
achieved new markets where we find massive level of IT
solutions demands.
References
Verizon Wirless Interactive timeline. (2015). Retrieved Feb 22,
2015, from www.investor.verizn.com
36. http://investor.verizon.com/profile/history/>.
Verizon Wirless interactive Timeline. (2015). Retrieved Feb 02,
2015, from
www.investor.verizon.com.::
http//investor.verizon.com/profile/history/
Verizon Communications Inc (2013). Retrieved Feb 22, 2015,
from www.verizon.com:
http://www.mergentonline.com.ezproxy.vccs.edu:2048/company
detail.php?compnumber=36979
Verizon Wirless interactive Timeline. (2014). Available from
EBSCO Host. (No. 100453685) p1-10. 10p –University Library
EBSCO Host
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viewer/pdfviewer?vid=7&sid=1e6b6136-d81a-4d9d-9a3a-
bcc828f1e485%40sessionmgr111&hid=102