● Verizon was founded in 1983 and headquartered in New York City.
● The Company which was formerly known as Bell Atlantic Corporation changed its
name to Verizon Communications inc. in June of 2000 when it merged with another
company by the name of GTE
● The merger today is still one of the biggest in U.S. business history valued at 52 billion
dollars, the merger took almost 2 full years to complete.
● Verizon now offers three main platforms of service through communications being their
main along with the added additions of information, and entertainment.
● By 2004 the company was already a leader in its mobile network and was huge in its
industry influence which landed them in the Dow Jones Industrial Average, which is
one of the most closely watched stock indices.
3. New Product Development
● Verizon has many new and creative new technologies emerging out onto the
market through a program that they call the Innovation Program.
● The way Verizon uses this program to further advance new upcoming potential
products is they provide their 4G LTE service which is a high speed mobile
network that allows for the fast transfer of data to a device or from a device to
another to other companies that would use it in their products.
ex. An example of this is Verizon partnered with JVC to create a camera used
for news broadcasting and made it possible that that camera alone could send the
broadcast directly through to the studio instead of using a third party router or
4. New Product Development
• The Innovation program has made advances not just in the market of the media
though, also they have made a splash in the Energy markets, Networking markets,
and even the Healthcare markets.
● As for Verizon being a leader in their particular market they follow a precise code
of conduct in how they go about conducting their business.
● They believe in the highest ethical standards and abide by them in accordance with
their roots and history in being committed to respect and integrity.
● Verizon puts an exclamation point throughout their code of conduct on the ideas of
using respect to its customers and business partners in order to reach their ultimate
goal of being the most respected brand in communications.
● With Verizon trying to become a more competitive company it runs into 2 major
obstacles, the giants of the wireless industry at the moment, Softbank a Japanese
owned corporation and T-Mobile continue to grow and conquer many companies
within their market.
● With their hopes in becoming one of the industries top dogs Verizon bought out
roughly about 45% of Vodafone’s (A company based out of the UK) indirect
Interest they make in Verizon Wireless a deal worth 130$ billion
● The deal made Verizon the clear frontrunner in the industry in the United States
and with them already having over 100 million customers the deal could help them
reach out toward other countries now for growth and expansion.
8. Verizon: Management Core Values
• Verizon: prides itself on putting its customers first by providing excellent service and
exceptional experiences. By focusing on its customers Verizon is able to produce a solid
return for shareowners, engage its employees in challenging and meaningful work and
provide something of lasting value for society.
• Integrity: is at the core of everything Verizon does. The company is honest, ethical and
upfront, because trust is at the foundation of its relationships with its customers, employees,
communities, and its stakeholders.
• Respect: is critical and everyone at every level of its business is respected. Verizon
campaigns for diversity, embraces individuality and listens carefully when others speak.
• Performance Excellence: Verizon holds itself to a very high standard of performance. They
prize innovative ideas and the teamwork it takes to make them happen. Verizon never stops
asking itself how can we make the customer experience better?
• Accountability: Verizon takes full responsibility for its actions as individuals, as team
members and as an organization. Verizon works together, supports one another and never lets
its customers or co-workers down.
9. Verizon: Management Structure
• Organizational Structure- Verizon’s organizational structure permits the assignment of
service quality responsibility to specific individuals within the organization. A strong
organizational structure provides a greater assurance that actions will be taken to meet or
exceed service quality objectives. If responsibilities for service quality are not clearly
assigned to individuals within Verizon, the probability of success is declined.
• Corporate and Strategic Planning – Verizon’s corporate and strategic planning
processes place emphasis on service quality goals and objectives. Verizon’s planning
processes have a direct impact on service quality measurements. Furthermore, strategic
and corporate planning is also long-term, it can impact the ability to obtain a certain
level of service quality into the future. If service quality is not part of the plan, it will be
difficult to achieve.
10. Verizon: Management Structure
• Human Resources Management – In any business, it is the people who make it
happen. Human Resources management is an important element to Verizon’s overall
quality of service. Verizon builds individual and team incentives and rewards around
the attainment of high service quality .
• Labor Relations – is the study and practice of managing unionized employment
situations. Labor relations can greatly affect service quality. Management/associate
relationships can have an effect on service quality measures, especially in the
telecommunications industry, which tends to high a large amount of unionized
workers. Its important to have excellent labor relations so that employees don’t go on
strike and are happy with how Verizon treats them so that they can work efficiently ad
to their fullest potential.
12. Corporate Level Job Descriptions
• CEO (Chief Executive Officer) is often but not always also the president of a company, reporting to the Chairman of
the Board and board members.
• CFO (Chief Financial Officer) is the corporate official in charge of a company's finances and financial risks. They
deal with data analysis, financial planning and record keeping
• CIO (Chief Information Officer) is responsible for a company's internal information systems, and, especially with the
arrival of the Internet.
• CTO (Chief Technology Officer) is responsible for research and development and possibly for new product plans.
• CSO (Chief Security Officer) is responsible for the security of a company's communications and business systems.
• CCO (Chief Compliance Officer) is responsible for ensuring that a company and its employees are in compliance
with government regulations and internal policies.
• CMO (Chief Marketing Officer) is responsible for sales, product development and all things marketing-related.
• COO (Chief Operating Officer ) is responsible for the day to day operations or an organization.
13. Recent Management Changes
• In 2011, Verizon adopted a more entrepreneurial culture in its shrinking land-line business,
incoming Chief Executive Officer Lowell McAdam said. Verizon’s wireless-customer gains
ahead of those of rival AT&T Inc., which is set to become the dominant mobile carrier after
acquiring T-Mobile USA Inc. He also needs to manage a loss of traditional phone users,
while challenging cable-TV companies with the FiOS fiber-optic TV and Internet service.
• On October 20, 2014 Verizon announced executive-level changes in its Finance
organization and the creation of a new organization, Verizon Services, designed to increase
• Verizon services is an organization set out to provide centralized back-office and support
services to Verizon's business units and Verizon Wireless, expected to increase efficiencies
through economies of scale and eliminated duplication of effort. The new organization,
Verizon Services, will include procurement and logistics, real estate, human resources
employee services, and financial operations.
14. S.W.O.T. Analysis
Strengths Weaknesses Opportunities Threats
• Strong market share
supported by growth
• rates, margins and
• Extensive wireless
• Growing postpaid
• FiOS success driving
• growth in the
• Substantial debt • Robust outlook for
• Increasing adoption of
• Rising demand for
• Acquisition of
Vodafone’s stake in
• Impending price wars
may affect profitability
• Changes in regulations
may affect business
• Saturation in wireless
• Provides voice, data and video communications products and enhanced
services, including broadband video and data, corporate networking
solutions, data center and cloud
services, security and managed network services and local and long distance
• Mobile devices
• Customer services
• Offer different prices to fit each customers budget, along with these
prices come different packages to fit each customers needs
• Sold at:
• Verizon wireless stores
• Best Buy
• The company provides these services to consumers in the US, as well as to
carriers, businesses and government customers in over 150 other countries
around the world
• Based on targeted primary customers, the company’s wireline business is
categorized into three groups:
• mass markets, global enterprise and global wholesale.
• In 2002 “Can you hear me now?” commercial
• In 2008, “Dead Zone” commercial
• In 2009, the iPhone was exclusively sold through AT&T, so Verizon
retorted with “There’s a map for that” commercial
Period Ending Sep 30, 2014 Jun 30, 2014
Net Income 3,695,000 4,214,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation 4,167,000 4,161,000
Adjustments To Net Income 361,000 (1,599,000)
Changes In Other Operating
Total Cash Flow From Operating
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures (4,130,000) (4,344,000)
Other Cash flows from Investing
Total Cash Flows From Investing
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid (2,070,000) (2,066,000)
Sale Purchase of Stock - -
Net Borrowings (652,000) (46,000)
Other Cash Flows from Financing
Total Cash Flows From Financing
Change In Cash and Cash
22. Period Ending Sep 30, 2014 Jun 30, 2014
Total Revenue 31,586,000 31,483,000
Cost of Revenue 12,252,000 12,087,000
Gross Profit 19,334,000 19,396,000
Operating Income or Loss 6,890,000 7,685,000
Income from Continuing Operations
Total Other Income/Expenses Net 71,000 66,000
Earnings Before Interest And Taxes 6,913,000 7,708,000
Interest Expense 1,255,000 1,164,000
Income Before Tax 5,658,000 6,544,000
Income Tax Expense 1,864,000 2,220,000
Minority Interest (99,000) (110,000)
Net Income From Continuing Ops 3,647,000 4,171,000
Net Income 3,695,000 4,214,000
Net Income Applicable To Common
Shares 3,695,000 4,214,000
23. Period Ending Dec 31, 2013 Dec 31, 2012
Total Current Assets 70,994,000 21,235,000
Long Term Investments 3,432,000 3,401,000
Property Plant and Equipment 88,956,000 88,642,000
Goodwill 24,634,000 24,139,000
Intangible Assets 81,547,000 83,677,000
Other Assets 4,535,000 4,128,000
Deferred Long Term Asset
Total Assets 274,098,000 225,222,000
Accounts Payable 16,453,000 16,182,000
Short/Current Long Term
Other Current Liabilities 6,664,000 6,405,000
Total Current Liabilities 27,050,000 26,956,000
Long Term Debt 89,658,000 47,618,000
Other Liabilities 33,335,000 40,438,000
Deferred Long Term Liability
Minority Interest 56,580,000 52,376,000
Negative Goodwill - -
Total Liabilities 235,262,000 192,065,000
Common Stock 297,000 297,000
Retained Earnings 1,782,000 (3,734,000)
Treasury Stock (3,961,000) (4,071,000)
Capital Surplus 37,939,000 37,990,000
Other Stockholder Equity 2,779,000 2,675,000
Total Stockholder Equity 38,836,000 33,157,000
Net Tangible Assets (67,345,000) (74,659,000)
• Started traded in NYSE July 3,2000
• As well in the London Stock
• They first traded through
• Bell Atlantic
• Ticker Symbol: VZ
• Current Stock Price
• Current P/E Ratio: 14.7
• Earnings per share: $3.2
26. DIVIDEND POLICY
• Dividend Policy: Set of guide lines a company uses to decide how
much of its earnings it will pay out to shareholders.
• Payouts every Quarter
• Dividend Yield: 4.52%
• Annual Payout: $2.20
• Payout Ratio: 62.7%
• 5 Year Dividend Growth: 2.90%
• Verizon has a program that can take shareholders dividends and
reinvest or does a direct deposit.