Analysis of AT & T Organization Essay Example | Topics and Well Written Essays - 3250 words

Analysis of AT & T Organization - Essay Example This organization is originally a company of Alexander Graham Bell, the inventor of telephone services, and has their headquarters in Boston. The organization is a previous monopoly business that serves the population in the telecommunications and information technology sector (Keidel, 2005). It involves itself in the development and sale of telecommunication services in the country and across the entire globe (Verzuh, 2007). The organization has recently been experiencing problems in the loss of customers to their competitor, Verizon Corporation. This is because their competitor’s did introduce a similar product to their iphone. They are also able to offer better pacts than the organization (Green, 2006). For example, Verizon Corporation offers no limitations on data transfers and still charges a set price. The organization is currently unable to provide their customers with the satisfaction they require from the network capabilities on offer. This results in the company maki ng big losses in terms of customers leaving the organization for their competitors. The organization has not been able to keep their customers to the business (Valikangas, 2010). I would like to suggest that the company develops a project to explore into these issues. They should form teams comprising of experts and some technical staff to address this issue across their various branches. The organization will expect to improve their products and increase the number of customers to their business (Valikangas, 2010). Analysis of the Current Situation This organization offers telephone communication services across twenty-two states in America. The company also offers internet facilities, data transfers and phone services. Financial analysts in the company suggest that the organization is likely to make profits in the next few years. The organization is also currently enjoying great revenues from their wireless trade (Estabrooks, 2005). The organizations debt currently stands at $1.4 billion, which is below EBITDA standards by 1.6 periods. Their pensions are hard to approximate and it finds difficulties in their cash flows since they have many debt to repay and dividends to pay to the shareholders. The dividends they pay out amount to more than ten billion dollars (Temin and Galambos, 2007). The organization intends to acquire another company by the name of T-Mobile USA. These activities are likely to affect the organizations capital composition though the financial analysts believe that the company’s performance will remain constant. The company has to cut the costs they incur to ensure that their performances remains relevant to the current market conditions (Hodges, 2002). The disadvantage that the organization currently encounters on limitations in their network will get their solutions after the organization acquires the additional firm. The management of AT&T expects that the additional organization will come with the networking resources they requi re. The organization’s provision of wireless services is far beyond their competitors abilities. The organizations leadership focuses their cash on the repayment of their debts (Ellis, 2009). This move did come into play over the past few years with the aim of reducing their debts. This act enables the company to cut their costs to the current value of 65 billion dollars. Their investment formation remains the most traditional in their industry. This gives the company the advantage of quickly adjusting to changes in the economic conditions the country experiences (Temin and Galambos, 2007). The organization’s main competitor in the provision of Iphones, Verizon, has a customer base of more than ninety four million people and makes over a