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    limited scope risk assessment of AT&T

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    Perform a limited scope risk assessment of A T & T, the telecommunications giant. Gather relevant intelligence on the company, such as the latest press releases, articles, and SEC 10K filings. Identify five shared risk exposures in A T & T's:

    Traditional land-line communications business.
    Wireless communications business.
    Acquisition activities.
    Also identify five non-shared risks for each of these three business areas.

    Develop management strategies for the five shared exposures at a corporate level and business unit strategies for the non-shared exposures. Based on available information, determine whether all could be handled viably and more effectively at the corporate level, or if management of these non-shared potential exposures is better managed in a decentralized way.

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    STEP 1
    Five shared risk exposures:
    1. There is a shared risk that there would be clashes among the top management at higher levels There are executives in AT&T who are more interested in protecting their fiefdom than in focusing on the benefits of AT&T.
    2. Dependence on the advice of investment bankers: These bankers are more interested in the short term fees that arrangements would generate rather than the long-term interest of AT&T. AT&T has often been ill advised by these bankers and in future the AT&T will be misguided and misled by the bankers.
    3. There is a shared risk that the corporate strategy will be warped and misdirected by the lawyers that advice AT&T. These lawyers have influenced corporate strategies in the past and will continue to do so in future. The reason is that AT&T is highly regulated. Corporate strategies in the private sector are developed by the managers.
    4. There is a shared risk that AT&T may make a foray into foreign market again. Trying to global is a big risk for AT&T, its managerial focus and finances get diverted from its US operations. This lack of concentration and finance can mar its US operations severely.
    5. Shared risk of conflict in managers and executives. There is a high risk that if managers and executive are recruited from the private sector, there will be a clash of the new comers with the old styled bureaucrats. Any attempt to ameliorate the work culture of AT&T risks failure.
    Non-shared risks:
    Traditional Land Lines:
    1. There is a risk of losing reputation because of poor customer service;
    2. There is a risk that there would be rampant overbilling..
    3. There is a risk that competitors would out compete AT&T in the land line market.
    4. There is a risk that AT&T would be sued under the Sherman Act for restrictive trade practices. It forces consumers to buy its landline if they want to buy its high speed internet connection.
    5. There is a risk that AT&T would face falling revenues from landline operations.

    Wireless Communications Business:
    1. There is a risk that its current culture will not be able to sustain the wireless communications.
    2. There is a risk that low quality connections may force consumers to change over to other service providers.
    3. There is a risk that the tie up with Apple for iPhone connections may be terminated. Apple has resented the low quality connections provided by AT&T.
    4. There is ...

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