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Management as a System

  • Lawrence P. Carr
  • Alfred J. NanniJr
Chapter

A Tale of Two Companies—Success and Failure of Strategic Execution

The year was 1997. A new CEO at AT&T Corporation, C. Michael Armstrong, initiated a bold strategy. Realizing that his company’s core business, long distance, was rapidly becoming obsolete, Armstrong embarked on a $100 billion acquisition spree to launch AT&T into the up-and-coming cable market. The move won rave reviews and Wall Street embraced the idea, especially viewed against the background of AT&T’s market slide prior to Armstrong’s hiring.1

Armstrong knew the cable market. During his previous stint as CEO of Hughes Electronics, he had built the largest satellite-TV service in the United States competing directly against cable. Furthermore, he could foresee a key advantage of cable: It would offer direct lines into customers’ homes, a benefit AT&T had lost years ago. With such easy access to customers, AT&T would be poised to offer television, Internet, and phone services, separately or bundled. Armstrong also...

Keywords

Cash Flow Organizational Design Strategic Priority Military Spending Lean Manufacturing 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.Accounting & Law Div.Babson CollegeBabson ParkUSA

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