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6/29/2016

AT&T Inc.-Balanced Score CardACT 5140Presented to Professor JoAnn M. Ackerman

Prepared by :

Carlos Lopez

Samantha Mayorga

Larry Perry

Cory Perry

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AT&T is one of the leading providers of communications and digital entertainment services in the United States and the world. The services and products that it offers vary by market, and include: wireless communications, data/broadband and Internet services, digital video services, local and long-distance telephone services, telecommunications equipment, managed networking, and wholesale services.

• Business Solutions business unit provides services to business, governmental and wholesale customers

• Entertainment Group business unit provides video, internet and voice communication services to residential customers located in the U.S. or in U.S. territories

• Consumer Mobility business unit provides wireless services to consumers, and wireless wholesale and resale subscribers located in the U.S. or U.S. territories

• International business unit provides entertainment services in Latin America and wireless services in Mexico.

About AT&T

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Operating Segments

Business

Solutions

55%Total Revenue Contribution

7%Total Revenue Contribution

35%Total Revenue Contribution

Provides services to business,

governmental and wholesale

customers and individual

subscribers who purchase

wireless services through

employer-sponsored plans.

Entertainment Group

Consumer

Mobility

International

Business

3%Total Revenue Contribution

Provides video, Internet and

voice communication services to

residential customers in the U.S.

and U.S. territories.

Provides wireless services to

consumers, and wireless

wholesale and resale subscribers

located in the U.S. or U.S.

territories.

Provides video entertainment

services to residential customers

in Latin America and wireless

data and voice communication

services to consumer and

business customers in Mexico

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Operating Segments

Business

Solutions

73.7 million

Business Solutions Subscribers

Wireless service, fixed strategic

services, legacy voice and data

services, other services and

wireless equipment.

AT&T

Entertainment Group

Consumer

Mobility

International

Business

37.8 million

Entertainment Subscribers

Video entertainment,

high-speed Internet,

legacy voice and data services,

and equipment and other

AT&T, DIRECTV

55.0 million

Consumer Mobility Subscribers

Postpaid wireless, prepaid

wireless, other services, and

equipment.

AT&T, Cricket

28.3 million

International Business Subscribers

Video entertainment, wireless,

and equipment.

Iusacell, Unefon and Nextel

Mexico, DIRECTV and SKY

Balanced Score Card

Customer Perspective

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Objective: Deploying superior networks to all operating segments

Measures: Customer satisfaction through one call resolutions and shorter waiting times for customer service call

Targets: Retaining customers and increasing company contracts with consumers

Initiatives: Creating bundle packaging to attract new customers and incentivize existing customers to expand their services.

Customer Perspective

Balanced Score Card

Financial Perspective

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Objective: To deliver superiority through Financial and Operational Growth, and also Cost Reduction.

Measures: The measure we use are based on the Income Statements , Balance sheets and Stockowners Equity.

Targets: To grow Wireless Revenues, grow Strategic Revenues, and reduce Cost Structure

Initiatives: The Company will Consolidated revenue growth in line with GDP growth or better

Adjusted EPS growth in mid single-digit range or better Improving free cash flow with a free cash flow dividend payout ratio in the 70s percent range.

Financial Perspective

Balanced Score Card

Learning and Growth perspective

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Objective: Staying up to date with the local and global market tends and creating new forms of service for customers.

Measures: Based of the results from the company’s operating segments.

Targets: Retain our current customers and attract new customers by introducing services and promotions.

Initiatives: Creating and testing new generation software and service for customers.

Learning and growth: Innovation Process

Balanced Score Card

Internal Perspective

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Objective: Become the number 1 telecommunications provider in the US

Measures: Reduce customer Churn, Increase revenues and decrease costs

Targets:

Generate revenue growth from non voice related services

Initiatives: Create differentiation on this 3 core areas:

1. New Fixed and Cellular technology, Data Speeds, Network Coverage, Less dropped connections, Strength of signal. Expand Giga power footprint 1Gbps (5G cellular and Fiber)2. Easy to deal with change plan, plan flexibility3. Value added Promotions: wireless and DirecTV Unlimited plans offered to people that sign up for the bundles. New Device technology New iPhone 6 promotion 1st free and 2-6 50% discount

Internal Process