mer discount plans one 10 cents to 15 cents a minute. i. By splitting AT&T stock into separate tracking stocks, Armstrong may free it from its slavery to earnings per share targets. The new capital structure isolates a steady earnings stream in one section of the business; the rest of the company is free to make bigger, riskier investments. j. Does Armstrong have the means to keep the innovators?IV. Critique/OpinionThe Company has become so depended on older technology that many in middle and top management have left to work for other companies, take early retirement or start their own businesses. AT&T is purging itself of its brightest and best talent, the big question is how should Mr. Armstrong stop the erosion of AT&Ts talent base? Mr. Armstrong should establish a system that will allow communication to flow down word to the employees. They also should establish a system to allow information to flow upward to management. Both systems would allow the employees to feel that company is concerned about them. Good communication between Mr. Armstrong and the company employees can help both management and labor function better as a team in completing the overall goals and objectives of AT&T.Due to AT&Ts pricing system, over stock pile of assets and institutional reluctance to threaten those assets with new technologies the company has locked itself into the obsolete course and mind-set, which will be very costly to change. To correct this problem and bring the company into the 2001century, President Armstrong has taken a proactive approach by acquiring companies that have more modern technologies that will complement AT&T. Armstrong acquired TCI and Teleport Inc. To bridge the so-called last mile connecting its network to customs' homes and businesses which was lost the old Ma Bell was broken up. Armstrong has begun to try to free the company from its slavery to earnings stock by splitting the stock into smaller parts to a...
