Challenges Facing AT & T Inc.

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ChallengesFacing AT &amp T Inc.

ChallengesFacing AT &amp T Inc.

TheAT &amp T Inc. is an American-based multinational corporation whichbasically deals with Telecommunications as well as being one of themajor providers of both mobile and fixed telephone in addition tobroadband television services. In the earlier days AT &amp T waswidely recognized as the world’s largest telephone company.However, over the years there have been significant occurrencesespecially with respect to the phone business which has led to adecline in the overall performance of this organization. Some ofthese factors include the mushrooming of other companies whichprovide more competitive prices and discounts as well as the everincreasing trend of migration to the wireless subscriptions.

ASWOT analysis carried out in this company identified the variousaspect regarding the current status of this organizations. Thestrengths and the weaknesses were analyzed and one of the majorweaknesses identified after the analysis indicated that there was theaspect of tighter margins due to the introduction of othersmartphones and low-cost plans from competitors. In addition, aweakness concerning the lack of flexibility to adapt to the changingtechnologies as well as compliance to the ever changing FederalCommunication Commission’s regulation pose a great set back in therealization of maximum profits.

Flexibilityin a business is a critical issue that most companies andorganizations find it a big problem to deal with. This is due to thecomplex factors surrounding the particular organization especially interms of management, production as well as the marketing aspects.With respect to the AT &amp T Inc. the issue of flexibility poses asignificant risk that partly contributes to the dwindling of profitsand ultimately this may ultimately affect the trading of sharesnegatively and thus missing out on large-bull market runs.

Thisreport targets the stakeholders of AT &amp T including thedirectors, owners, employees, supplies as well as the clients. It isimportant for the management team to be able to identify the factorsthat remarkably affect the performance and based on these findings,deduce proper methods and techniques that will work efficiently andeffectively to improve the current status of the company. Informingthe owners would also facilitate them to push for necessary changesfor the good of the organization. Suppliers and clients would also beable to know the upcoming changes and analyze the profitability ofdealing with this organization as well as the upcoming future plans.

AT&amp T Inc. is quite a vast company which is characterized by amultiplex structure of organization and management. This aspectdepicts the seriousness of lack of flexibility based on the fact thatthese complexity hinders the quick adaptability to the continuouslytransforming products in the market. This therefore provides aloophole for more agile yet smaller competitors to access the marketand provide new products at a quick rate and also at prices thatlower thus making the potential clients to shift preference. Inaddition to this effect, these small, lithe companies are not complexthus they experience lower development expenses unlike the complexcompany which has to follow lots of protocols and subsequently hugestructural developments (Defranco,2015).With regard to this issue, it is imperative that the organizationshould analyze the organizational structure and find ways tostreamline the structure. This can include reducing the resistance ofmanagerial organizational structures to changes by training bothstaff and management on best practices and the evolving technology aswell as implementing the use of objective performance towards theachievement of set goals. In addition, technological skills shouldalso be imparted into the system supported by employee incentives.Encouraging and supporting the production team may provide a focalpoint in the release of new and up-to date product and servicepackages that could outdo the competitors. Furthermore engaging thesupport of other groups will facilitate the establishment offunctional teams that will be effective in the designing andimplementation of the suggested changes. Constant measures formonitoring and evaluation should also be put in place in order toidentify the progress of the organization towards achievement ofgoals and objectives (Dominus,2016).

Theflexibility of AT &amp T Inc. is not only rooted to the resistanceto change but also on the inability to conform to the changingregulations and policies that have been put in place by the FederalCommunications Commission (F.C.C.). Failure to conform to the rule ofLaw has detrimental effects to the companies and can be equated tolack of quality and can lead to reduced popularity which cantranslate to the outflow of customers. In addition, it may lead tothe litigation that spoils the name of the organization and financialimplications involved in the solving of the lawsuits. This internalweakness can be effectively dealt with by employing stringentmeasures including carrying out strict and active management of theauditing staff throughout the entire organization followed byproduction of reports in a transparent manner as well as properdocumentation and communication flow between the differentdepartments. The incorporation of a third party to carry out bothfinancial and staff audits may prove to be a worthy course in theroad to achieving transparency and authenticity. This will beimportant in the early detection of any possible malpractices eitherfinancial or product-based and the subsequent early intervention ofsuch practices (Bockwoldt,2013).


Theability of a business to be versatile is one of the most importantaspects for continuous growth and maintenance of the customernumbers. As seen in the AT &amp T Inc. the lack of adjustability tothe changing technology and other external factors as well asinability to adjust to the FCC regulations have affected its overallperformance. The key to revamping should focus on reducing theresistance to change by the management, improving technological andstructural developments and products as well as ensuring transparencywith regard to observing to rules and regulations provided by thepresiding body.


Bockwoldt,T. (2013, April 9). SixTips to Improve Your Internal Controls Audit.Retrieved from Proformative:

Defranco,K. (2015, February 17). AT&ampT:A Short SWOT Analysis.Retrieved from Value Line:

Dominus,S. (2016, February 25). Rethinkingthe Work-Life Equation.Retrieved from The New York Times Magazine: