Verizon Strategic Analysis Essay Example

Verizon Strategic Analysis Paper Verizon Mission Statement With the use of pro-formal balance and income statements, detailed ratio analysis and industry trend tracking we hope o increase share holder wealth while expanding our market share and bringing innovative new products to the consumer. B. Existing Mission Our Nilsson at Verizon Is simple, to be the best and only choice for consumer telecommunication needs. C. Existing Objectives Big changes are happening in the way people communicate, as innovative technologies reshape consumer behavior around convenience, ease of use and instant gratification. With wireless phones, e-mail, instant messaging and the Internet, customers have a range of choices for connecting to people and information. The changes in technology are affecting more than Just phone calls and ext messages. For example, you no longer have to Walt days to mail pictures of your vacation to friends and family you can now share your experiences Immediately using a camera phone or a broadband computer connection. The twin phenomena of increased mobility and broadband availability are restructuring industries and transforming our society. Nearly two-thirds of all American homes now subscribe to both wireless and hireling services, and wireless calls now outnumber calls from traditional hireling telephones. As a measure of the popularity of camera phones, Verizon Wireless customers sent or received more than 30 million stricture messages in just the last three months of 2004. Finally, online usage has grown significantly in the last few years, as 70 percent of U. S. Households now have access to the Internet, and over one-third of those homes are served with a broadband connection. As Americas broadband appetite increases, so too will the sophistication of a new generation of digital devices. Soon, the ability to communicate will be embedded in most electronic devices and will become an essential part of major home appliances. We will write a custom essay sample on Verizon Strategic Analysis specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Verizon Strategic Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Verizon Strategic Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer To meet these escalating demands for communication, Verizons new wireless and fleer broadband technologies have the o provoke our customers Walt all ten Downtown n teeny wall need Tort years to come. As new high-capacity applications continue to become an integral part of our daily lives, Verizons premier communications services will deliver the speed, mobility and control our customers need to stay connected. By providing these services, we enable our customers to enjoy the rich communications experiences made possible by converging technologies. D. Existing Strategies Revenue Growth Our emphasis is on revenue transformation, devoting more resources from traditional services, where we have been experiencing access line shoes, to the higher growth markets such as wireless, hireling broadband, including digital subscriber lines (DSL) and fiber optics to the home (Verizons Bios product), long distance and other data services as well as expanded services to enterprise markets. In 2004, revenues from these growth areas increased by 20% compared to 2003 and represent 53% of our total revenues, up from 47% of total revenues in 2003 and 43% in 2002. Verizon reported consolidated revenue growth of 5. 7% in 2004 compared to 2003, led by 23. 0% higher revenue at Domestic Wireless and 7. 4% total data revenue growth at Domestic Telecoms. Verizon added 6,294,000 wireless customers, 1,240,000 DSL lines, 2,337,000 long distance lines and more than 750 Enterprise Advance sales in 2004, meeting its revenue objective of $250 million. Operational Efficiency While focusing resources on growth markets, we are continually challenging our management team to lower expenses, particularly through technology-assisted productivity improvements. The effect of these and other efforts, such as the 2003 labor agreements and voluntary separation plans, has been to significantly change the companys cost structure. At December 31 , 2002, Verizon had 226,000 employees compared to 202,000 at December 31 , 2003. Domestic Telecoms salary and benefits expenses declined by approximately $1 billion in 2004 compared to 2003 as a result of the voluntary separation plans. Workforce levels in 2004 increased to 210,000, driven by wireless and hireling broadband growth markets. Capital Allocation Verizons capital spending continues to be directed toward growth markets. High-speed wireless data (EVADE), replacement of copper access lines with fiber optics to the home, as well as voice over the Internet (Poi) and expanded services to enterprise markets are examples of areas of capital pending in support of these growth markets. In 2004, approximately $900 million of capital spending at Domestic Telecoms was reallocated from traditional products to growth products. Cash Flow Generation The financial statements reflect the emphasis of management on not only directing resources to growth markets, but also using cash provided by our operating and investing activities for the repayment of debt in addition to providing a stable dividend to our shareowner. At December 31 , 2004, Verizons total debt was $39,267 million, a decrease of $6,113 million from $45380 million at December 31, 2003. Recommended Mission and Vision Statement Verizon Communications Inc. NYSE:VS.), a DOD 30 company, is a leader in delivering broadband and other wire line and wireless communication innovations to mass market, business, government and wholesale customers. At Verizon innovation and being on the forefront of technological advancements insures Verizon Wireless operates Americas most reload wheelers network. Verizon Business operates one AT the most expansive, wholly-owned, global IP networks. Verizon Telecoms is deploying the nations most advanced fiber-optic network to deliver the benefits of converged ammunitions, information and entertainment services to customers. Based in New York, Verizon has a diverse workforce of more than 252,000 highly trained and dedicated employees. The Verizon commitment is to put our customers first by providing excellent service and great communications experiences. This is what we do and this is why we exist. By focusing on our customers and being a responsible member of our communities, we produce a solid return for our shareowner, create meaningful work for ourselves and provide something of lasting value for society. As a result, Verizon is recognized as a great company. In order to keep this commitment, we always honor our core values. Integrity is at the heart of everything we do. We are honest, ethical and upfront because trust is at the foundation of our relationships with our customers, our communities, our stakeholders and each other. We know it is critical that we respect everyone at every level of our business. We champion diversity, embrace individuality and listen carefully when others speak. We hold ourselves to a very high standard of performance. We prize innovative ideas and the teamwork it takes to make them realities.