Reorganizing AT&T: From Vertically Integrated to Customer-Centric Organization (B)

Reorganizing AT&T: From Vertically Integrated to Customer-Centric Organization (B)

Reasons that led to the break-up of AT&T and its strategic implications on the company and on the telecom industry

The case discusses the voluntary breakup of AT&T in 1995 (the largest in corporate history) and its implications on the company and the telecommunication industry in the US. It examines the organizational structure of AT&T after the break-up. The case then explores the events that led to another restructuring of the company in 2000 in which the company was split into four entities – AT&T Wireless, AT&T Broadband, AT&T Consumer and AT&T Business. The organizational structure of AT&T in 2001 is discussed in detail. The case then describes the problems faced by AT&T after the break-ups. Finally, the case discusses the issues before the new CEO – David Dormann and his restructuring plan in 2003 to make AT&T a more customer-centric company.   

Issues:

  1. Reasons that led to the break-up of AT&T and its strategic implications on the company and on the telecom industry

  2. Changes in the organizational structure of AT&T (pre-breakup and post-breakup), and analyze its implications

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