AT&T: Financial Analysis And Leadership Style

AT&T is a multinational company telecommunications company. Being one of the largest how does it stack up with its competitors using financial data as discussed in my analysis. My financial analysis points out that it not only has made in an impact in the idustry it is in, but also given back to the people who made it grow. All while, learning from its competitors mistakes and growing its own size adequatly. By researching the kostenbaum diamond and how AT&T portrays itself into each of the topics shows the company from many points of views. Based on its ethics, vision, courage, and lastly reality. By researching my own metamodern leadership style, I used the underlying principles to show how I could impact the company in its current standing with my Imagination, Vision, Idealism, and Innovative thinking. AT&T is a company which has succeeded in the long run and has much to prove in the future and that interests me because it has examplified compassion for the company itself but also its shareholders. By giving one of the highest dividend yields, all while keeping a great market capitalization. While maintaining its integrity by preventing major layoffs and impacting the tellecomunications industry as a whole, setting an example for others such as T-mobile, & Verizon.

Financial Analysis

AT&T is an American multinational telecommunications company. It is one of the world’s largest telecommunications companies. AT&T competes in the telecommuncations market with a lot of competition. This competition is no other than Verizon and T-mobile, which also have a great market share in the industry. Perfoming a financial analysis of AT&T and its competition will show us how it is performing in its own industry and why. Through the use of ratios we can analyze different financial metrics to see how the company is doing against its competition in the same market.

Market Capitalization

A measure of both a company’s size and health, which is used as opposed to using sales or total asset figures from the financials directly. While looking directly at the chart above we can see that AT&T’s market cap is 244.56B, while T-Mobile’s market cap is 63.34B, and lastly Verizon’s market cap is 236.27B. Analyzing all of these we can conlude that AT&T is a bigger company in size, healthier than its closest competition Verizon. Other factors certainly play a part but just from this alone we can conclude this.

Dividend Yield

An estimate of the dividend-only return of a stock investment. It usually rises when the price of the stock falls, and it will fall when the price of the stock rises. It will often look unusually high for stocks that are falling quickly. While looking directly at the chart above we can see that AT&T’s dividend yield is 6.09%, while T-Mobile’s dividend yield is non-existent, and lastly Verizon’s dividend yield is 4.22%. From this we can conclude that AT&T pays the highest amount of dividends which from first glance shows a strong financial position, but may come with slow growth for the company as the money is not being reinvested, unless the shareholders are reinvesting it.

Metamodern Leadership Style

Employs Imagination

This power means to employ imagination into the company with ideas and creativity in place all the time. Using imagination it is possible to go beyond the limits of reality and try things you would not have done before. Imagination is forming new ideas and concepts which you would not usually present and form. To employ means to set forth and use, so in this case to set forth the forming of new ideas into place.

One of the first things I would set forth is to focus more on productive growth while taking advantage of how big the company is already. I would set forth a plan to cut divisions that are not working as productivily or divisions that are not revenue generators while maintaining customer satisfaction. Doing so would change how the company has been run by persuading the board of directors to not annouce a high dividend yield and invest the money back into the company increasing the stock price for current shareholders and employ higher company growth.

Innovates Regularly

This power means to feature new ideas or methods and add creative thinking to every project. Using Innovationg it is possible to go beyond the barriers of no improvement in products and being left behind like many companies such as Kodak. Kodak’s failure to innovate and adapt to the everchanging world led to many strategic failures for the company, which I would like to prevent at AT&T.

A world with everychanging technologies which we did not think were possible a decade ago, have consumers hungry for the next best thing. I would set forth more money into R&D and projects which can in the future drive business and out innovate our competition with the capacity of more resources which we have. This would lead to setting forth change in the telecommunications world which is needed to set forth high cost to the consumers showing improvement in the products and services we provide to them.

Paradoxically Pragmatic & Idealistic

This power means to unrealistically aim for perfection or contradically not do things that are sensible and realistically. Which may sound bad and not good for a company which needs decisions to be made that will have the least amount of risk. But without hoping for the the best and having no ceiling to aim for removes the first boundary of innovating described above which is think different and have expectations beyong your imagination.

I would employ incentives for the most efficient decision makers and even incentives for all works wether they are out in the field or just a customer support specialist. This would indeniabily improve consistency and also set forth a joyful attitude which would drive the company upward. I would set no limits and boundaries for ideas which would seemingly be laughed out of a meeting at other companies as even the wildest ideas have made companies successful and in this changing world adding power to ideas which produce high risk but an even higher reward should be atleast tried.

Develops Future Vision

This power means to develop a vision for the future or set forth a plan that will drive the company in a direction to succeed in the future. Long-term growth is what AT&T is known for as they to this day have the highest divident yield and are one of the biggest companies in the United States. But the company has not experienced major growth in the stock price over the years bringing its market capitalization down which shows an average financial position in its market or industry.

I would set forth a 5 year, 10 year, and succession plan which would show how the company should be improving relatively to other companies or our competition. Using there financial and depicting their mistakes is the best way to guide our selves and improve instead of making the same. I have always been taught to learn from others who have already made mistakes, so that you have no excuse not to. While the succession plan would set forth how the company would be run if any terminations were to occur or any major incidents which could halt company processes, and be ready for any possibility.

Kostenbaum Diamond

The Kostenbaum diamond was created by Peter Koestenbaum, Ph.D as a model of leadership mind and a methodology for expanding leadership (PIB, 2019). It includes Ethics, vision, courage, and reality. All of which are orientations and have a connection someway or another with each other. The end result is of course greatness or potentional for extraordinary results (PIB, 2019).

Ethics and integrity are foundational to who we are at AT&T and have our underlying principles have guided our interactions with our customers, our shareowners, and each other (AT&T, AT&T Ethics & Compliance, 2019). As show in Appendix A, which also states that AT&T has communication well with its shareholders and consumers all while keeping its underlying principles which portray there ethics and integrity. While also, striving for meaninful work, such as adapting to the ever fast society and hearing what women have to say about STEM and getting them involved in a “Women Who Inspire” series (Rogers, 2019).

AT&T’s vision has been inspired by its values such as “Think big”, and “pursure excellence” (AT&T, AT&T Core Company Values, 2019). This portrays the companys need to innovate and get to the future before its competitors. It strives to set a pace which its competitors can follow and invent the future. Which exemplifies a strong sense of direction for the company, while looking at the big picture and broadening its horizon as shown in Appendix A.

AT&T contunies to work with industry leaders to create the future. Such as 5G which is in development across the country to be put into use in our daily lives. This is why AT&T has made an innovation program which includes the biggest technology companies in the world such as Cisco, Ericsson, Infosys, Intel, Magic Leap, Microsoft, Nokia, Samsung and Warnermedia (AT&T, Creating 5G Today, 2019). This shows more sense of innovation to get ahead for them.

Courage is where AT&T differentiates itself and sets goals and stands for things others won’t dare to do. Reffering back to the values which are “Stand for eauality”, “Embrace freedom”, and “Make a difference” (AT&T, AT&T Core Company Values, 2019). Which shows the company repsects and valeus its consumers setting aside race, gender, religion and understands that differences make us as individuals stronger. While maintaining a sense of free speech, which our country was founded and make a difference applying this within the company or for the comunities with people around us.

AT&T is willing to stand for topics which others companies will not trust. This is by evoking a sense of diversity, by letting others know that the company cannot be divided on issues. Such as a person’s race, gender, ethinicity, religion, and other characterisitcs. As they respect and value them. This is behind the fact that building a greater understanding of differences between each other makes not only the people in the community stronger, but also employees all around the company.

AT&T also faces reality with a great goals and additions to the company to maintain growth, such as bringing hundreds of jobs to Mesa, Arizona recently in its state of the art customer service facility and not relying on outsoursing to make our consumers feel more comfortable (AT&T, AT&T Brings Hundreds of Jobs to Mesa, 2019). This shows that the company pays attention to the customers and consumers who use there products and trys to make a difference in communities across the country by employing more workers.

Conclusion

To my conclusion, AT&T as a tellecommuncation giant in its industry that has done very well for making a name for themselves. Not only by staying true to their values which have had a great impact to their vision and mission statement. The underlying values such as “Think big” which represents there need for innovation and getting there first. “Purse excellence” to work tirelessly to make sure everything is correct. “Stand for quality” to respect everyone and put race, ethnicity, gender, sexual orientation, and characteristics aside to set a greater understanding.

This has been done while looking at reality and keeping a great bond with their shareholders, through a great market capitalization and growth overtime. Mainting a great dividend yield even when their competitors were not providing it in the hardest of times such as the recession of 2008-2009. Using the the leadership style that was assigned to me I would employ imagination to increase productive growth throughout the company. By Innovating regularly, to feature new ideas and methods, while adding creative thinking to projects.

Being paradoxically pragmatic and idealist, so that aiming at unrealistic goals are possible and that aiming for perfecting so that I am able to produce a high risk but high reward situation and break boundaries that others havenot been able to. By developing a future vision and give a sense of direction to suceed in the future using a 5 year, 10 year, and succession plan. To learn from other companies mistakes and use them to our advantage and be ready for any possibility.

References

1. AT&T. (2019, July 25). AT&T Brings Hundreds of Jobs to Mesa. Retrieved from AT&T: https://about.att.com/story/2019/mesa_call_center.html
2. AT&T. (2019, July 25). AT&T Core Company Values. Retrieved from AT&T: https://about.att.com/pages/values
3. AT&T. (2019, July 25). AT&T Ethics & Compliance. Retrieved from https://about.att.com/pages/ethics: https://about.att.com/pages/ethics
4. AT&T. (2019, July 31). Creating 5G Today. Retrieved from AT&T : https://about.att.com/story/2019/creating_5g_today.html
5. PIB. (2019, July 25). Leadership and Philosphy in Business. Retrieved from PIB.NET: https://www.pib.net/model.htm
6. Rogers, L. (2019, July 25). Women Who Inspire. Retrieved from AT&T Careers: https://www.att.jobs/women-who-inspire-linda-rogers