Abstract

The case discusses the breakup of the Bell System in 1984 and its implications for AT&T and the telecommunications industry in the US till the mid-1990s. It examines the organizational structure of the erstwhile Bell System and how it facilitated decentralization of AT&T's operations. The case then explores the events that led to the breakup and the changes in the organizational structure of AT&T after the break-up. The case describes in detail the implications of these organizational changes on the company. Finally, the case discusses AT&T's acquisition of NCR Corporation, a leading computer manufacturer, and looks at the reasons for the company's unsuccessful merger with NCR.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Break-up of Bell System and its strategic implications.

Keywords

Bell System, 1984, AT&T, telecommunications industry, US, mid-1990, organizational structure, Bell System, decentralization, AT&T, operations, breakup, implications, case discusses, NCR Corporation, computer manufacturer, merger