Crm final

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Crm final

  1. 1. THE CASE AT&T split into three stand alone companies- the New AT&T, Lucent Technologies, NCR.• Restructuring aimed – more responsive to customers and competition.• Another break up- poor stock performance & inability to face intense competition.• Shift from traditional long distance telephony business to fast emerging communication & information services business.
  2. 2. THE BREAK UP• New AT&T – provide world’s best communication & information services.• Lucent – took over business of designing, developing and manufacturing of telecommunication system, software & products.• NCR – Dealt in IT products, services, systems &solutions worldwide.
  3. 3. AFTER THE BREAK-UP• The Telecommunication Act 1996.• AT&T faced stiff competition from large players like MCI & US Sprint.• New policies adopted by Michael C Armstrong, the new Chairman & CEO of AT&T.
  4. 4. AT&T’s RESTRUCTURING PLAN• AT&T reorganized into four independent publicly- AT&T Wireless AT&T Broadband AT&T Consumers AT&T Business
  5. 5. DORMAN’s DILEMMA• The major was the declining revenues and bring AT & T back on the growth path• AT&T got fierce competition from its Local exchange carriers-RBOCs.• AT&T’s fixed line business was also hurt – as its corporate customers were not giving good business – Affected by FCCs plan to disallow the company access to local telecom service market – Its right to purchase local service at wholesale prices are going to get effected by the regulations.
  6. 6. REORGANIZATION IN 2003• April 2003- Dorman announced the reorganization of AT & T• Dorman felt that several layers of management had made AT & T lethargic and unresponsive to the needs of the customers• The reorganization would reduce the layers of management between the CEO and line workers from 14 to 7• Two divisions left-AT&T Business and AT & T Consumer• After reorganization, Dorman in the year 2003 tried to reduce the Debt of US$65 Billion to US$10 billion at the end of 2003.
  7. 7. Q1. Critically examine the break-up of AT&T in 1995 and the changes in its organizational structure. Do you think the break-up was successful in achieving the management’s objectives? Why or why not?• From vertically integrated to matrix structure.• No.
  8. 8. Q2. What were the reasons that led to the restructuring of AT&T in October 2000. Examine the organizational structure of AT&T after the restructuring , and compare it with the previous structure?• To prepare AT&T face competition in the emerging business including wireless & broadband internet.• Previously AT&T was having matrix structure and now from matrix it has adopted a divisional structure.
  9. 9. Q3.What issues did CEO Dorman face in 2003?What steps are being takenby him? Do you think the sale of AT&T to any of RBOCs will be a right move?Issues are:-• The major was the declining revenues and bring AT & T back on the growth path• AT&T got fierce competition from its Local exchange carriers-RBOCs.• AT&T’s fixed line business was also hurt due to many reasons
  10. 10. Steps taken by Dorman• Elevating customer care team in both AT&T Business and AT&T Consumer - Each unit is directly supported by the departmental head• Billing operations in customer service organization• All major AT&T retail channels are under one unified customer-facing sales organization - Helps AT&T a greater accountability and greater customer reach• Integrating all management segments into a single organization - Helps customer having seamless, integrated solutions

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