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December 5, 2003. Team 3 Project 7 Mike Lindamood John Pallotta Jeff Plitt Jennifer Yontz-Orlando. MCI: “Rebuilding the Brand”. Global Ethernet Backbone Industry / Competition Strengths Stakeholder Management Recommended Business Strategy Implementation Plan. Overview. - PowerPoint PPT Presentation
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OverviewOverview
Global Ethernet Backbone Industry / Competition Strengths Stakeholder Management Recommended Business Strategy Implementation Plan
1 2 3
4 5 6
7 8 9
* 8 #
MCI’s Global Ethernet Backbone
SkyTelDivision
Consumer Services
Internet Connectivity(Dial-Up, WiFi Hot
Spots, T1)
wan
Internet Services:Web-hosting,
networking, WAN/LAN
Corporate Services
VoIP
1 2 3
4 5 6
7 8 9
* 8 #
Future VoIP& Wirelesstelephone
services/G3 Outside Broadband
Cable Network
TelephoneNetwork/DSL
ProductReach
Communication Solutions
Industry TrendsIndustry Trends
Bundling of Telecom Services– Local , LD, Caller ID, Voice Mail, E-mail
Internet Calling (VoIP & Telephony)
Broadband (Fiber Optic Technology)– DSL, High Speed Data Transmission
Wireless (Wi-Fi) Technology– Wi-Fi Hot Spots, Text messaging, etc.
International Growth
Emerging TechnologyEmerging Technology
VoIP – Web Conferencing– Cost Savings– $20B Annual Growth Industry
Barriers between IT and Telecom Blurring
Domestic Competition within Industry Domestic Competition within Industry MCI AT&T Sprint Verizon SBC BellSouth
VoIP X X X X X X
Broadband X X X X
Mobile X X X X X
LongDistance
X
X X X X X
R&D X X
MarketShare
X
Network X
GlobalPresence
X X
Cash X X
Top Ten Ranked by SalesTop Ten Ranked by Sales
1. Nippon Telegraph and Telephone Corporation (NTT)2. Verizon Communications Inc. (VZ)3. Deutsche Telekom AG (DT)4. France Telecom SA (FTE)5. SBC Communications Inc. (SBC)6. AT&T Corp. (T)7. MCI Corp. 8. Telecom Italia S.p.A. (TI)9. Telefónica, S.A. (TEF)10. BT Group plc (BTY)
Domestic LD ServiceDomestic LD Service
1. AT&T
2. MCI
3. Verizon
4. Sprint FON Group
5. Quest Communications
Mobile ServicesMobile Services
1. NTT DoCoMo, Inc. (DCM)2. Vodafone Group PLC (VOD) - Verizon3. Cellco Partnership - Verizon4. Cingular Wireless LLC5. Orange SA6. AT&T Wireless Services, Inc. (AWE)7. T-Mobile International AG8. China Mobile (Hong Kong) Limited (CHL)9. Telecom Italia Mobile SpA10. Telefónica Móviles, S.A. (TEM)
Risks for MCIRisks for MCIDecrease of Local and LD ratesGovt. Regulation of Internet Calling ProcessSmall Companies Entering Market and
Diluting Customer BaseMCI’s Limited Wireless PresenceCable Offering VoIP Via Cable NetworksFederal Court Mandates to Share NetworksCompetitive Rivalry Between Existing
Players: Legal action by AT &T and Verizon
Strengths of MCIStrengths of MCI
1. UUNET– Largest Global IP Portal – 50% of Global On-line Traffic
2. Loyal Customer Base
3. Government Business ($1B per year)
StakeholdersStakeholders
New InvestorsWall Street and MediaCustomers
– Consumers– Business & Government
EmployeesLenders
Business StrategyBusiness Strategy
Core Competency: UUNET / BackboneLocal / LD Cost Reduction (# 2)Utilization of Cash Reserves
– IP technologyConvergent Technology
– AlliancesGovernment Business
Implementation PlanImplementation Plan
ManagementStrategic FlexibilityOrganizational StructureEthical and Governance
ManagementManagement
Continuous Mission Statement“Flat” Communications Role Model for ValuesCross-functional Groups
Strategic FlexibilityStrategic Flexibility
Proactive strategic flexibility will be established throughout the MCI
organizational structure.
Management
Information Systems& Engineering
Quality Assurance
Research & Development
Marketing
Sales
CONSUMER
GOVERNMENT
WHOLESALE
Optimal Organizational Structure
Code of Ethics
Good Corporate Governance
Ob
liga
tion
sR
esp
on
sib
ility
Ethics and GovernanceEthics and Governance
Breeden Report– Continued compliance and implementation– Internal ethics training– Zero tolerance for non-compliance
All Operations within Code of EthicsInternal and External Communications will
use “Sharing the Commitment to Integrity”
Additional ImplementationAdditional Implementation
Knowledge Mgt.– Ability to share internal knowledge– Employee participation in decision making– Establish incentive programs
Organizational Learning– Continuous process of growth– Feedback from participants– Able to overcome previous attitudes and behaviors