CASE Study

Adjustment and Adaptation MA Bell Style

NAME REG# Course SEM SUB TO

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Syed Anwer Qadri 1511-310025 Public Relations Fall 2013 SIR Muhammad Ahmed Butt

SUB DATE

16TH Dec, 2013

Table of Contents

1. Acknowledgement 3. Case History 4. SWOT Analysis

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2. Case Introduction .............................

5. Public Relations Objectives ................ 6. Public Relations Strategies ................ 7. Recommendations to the Management

ACKNOWLEDGEMENT
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I would like to express my special thanks of gratitude to Almighty Allah & my teacher (SIR M.AHMED BUTT) who gave me the golden opportunity to do this wonderful case study of Public Relations on the topic Adjustment & Adaptation - - MA Bell Style, which also helped me in doing a lot of research and I came to know about so many new things I am really thankful to him. Last but not the least I would also like to thank the authors of the book which helped me a lot in finalizing this project within the limited time frame.

Case Introduction
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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 breakup 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
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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
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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.

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

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:
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 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 management. improvement in marketing

The organization needs improvement in HRM.

Opportunity:
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 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:
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 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

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 AT&T can operate in healthy environment in international arena because companys product and operation system is consistent with high standards. The financial condition of AT&T is strong; they can equip to internalize the latest technology. The loyalty and satisfaction of existing customers and the good economic conditions give the opportunity to make new customers and expand business. AT&T can take care of social shift because they are enjoying a dominant position in telecom industry. Legislations have been passed to protect the interest of stake holders therefore; the company is maintaining best professional services with suppliers and vendors The policies of U.S.A telecom industry are stable therefore; company maintains reasonably good relationship with labors and bargaining agents.

Public Relations Strategies

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 Cost leadership, Superior Service, Reliable Service, Fastest Service Consumers will pay the extra dollar for the superior service, they want the best More money coming into the company, best service provider out there, not terribly more expensive then cheap service Downsizing of the Public Relations Department and hiring efficient and qualified staff so that the company can overcome the barriers coming from the publics. Gathering new customers through Press conference and making them believe that the company is giving them the best service. AT&Ts Public Relations Specialist must operate according to the social shift coming into the society to maintain the dominant position of the company. Re-Budgeting of the Public Relations Department and protect the interest the stake holders by using mass media. Public Relations specialist must study and observe the legal legislations of the international arena to cope with the barriers of international arena.

Recommendations to Management
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AT&T should restructure its public relation department, including departure of its public relation executives. Firm should downsize its 1700 public relation employees and should hire effective specialist those are able to give results. I would also recommend that management can also outsource the public relation to third party. In addition AT&T should also make its Human Resource Department effective so that they can also hire effective personnel those who can deliver results 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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