VerizonBy:

Jaritza Navarro

Michael Pepe

Alexis Moutinho

Riley Mulhall

Entrepreneurship ● 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.

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 other option.

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.

Ethics ● 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.

Globalization ● 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.

ManagementMichael Pepe

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.

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.

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.

Management: Organizational Chart

Verizon

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. 

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 operational efficiencies.

• 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.

S.W.O.T. Analysis

Strengths Weaknesses Opportunities Threats

• Strong market share supported by growth

• rates, margins and lower churns

• Extensive wireless network

• Growing postpaid ARPA

• FiOS success driving positive revenue

• growth in the consumer segment

• Substantial debt • Robust outlook for M2M market

• Increasing adoption of cloud computing Services

• Rising demand for high-bandwidth mobile communications

• Acquisition of Vodafone’s stake in Verizon Wireless

• Impending price wars may affect profitability

• Changes in regulations may affect business Prospects

• Saturation in wireless market

S.W.O.T Analysis

MarketingAlexis Moutinho

Product• Provides voice, data and video communications products and enhancedservices, including broadband video and data, corporate networking solutions, data center and cloudservices, security and managed network services and local and long distance voice services• Mobile devices • Customer services • Network

Price• Offer different prices to fit each customers budget, along with these

prices come different packages to fit each customers needs

Placement• Sold at:

• Verizon wireless stores• Costco• Best Buy• Wal-Mart• Target

• 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.

Promotion• In 2002 “Can you hear me now?” commercial

• https://www.youtube.com/watch?v=OPwPo-IAQ-E

• In 2008, “Dead Zone” commercial • https://www.youtube.com/watch?v=cwOTJohWark

• In 2009, the iPhone was exclusively sold through AT&T, so Verizon retorted with “There’s a map for that” commercial • https://www.youtube.com/watch?v=VZPjJI0K7Bk

FinanceJaritza Navarro

CASH FLOW

Period Ending Sep 30, 2014 Jun 30, 2014Net Income 3,695,000   4,214,000  

Operating Activities, Cash Flows Provided By or Used InDepreciation 4,167,000   4,161,000  Adjustments To Net Income 361,000   (1,599,000)Changes In Other Operating Activities 31,000   779,000  

Total Cash Flow From Operating Activities 8,353,000   7,665,000  

Investing Activities, Cash Flows Provided By or Used InCapital Expenditures (4,130,000) (4,344,000)Other Cash flows from Investing Activities 46,000   2,529,000  

Total Cash Flows From Investing Activities (4,084,000) (1,815,000)

Financing Activities, Cash Flows Provided By or Used InDividends Paid (2,070,000) (2,066,000)Sale Purchase of Stock -   -  Net Borrowings (652,000) (46,000)Other Cash Flows from Financing Activities (105,000) (869,000)

Total Cash Flows From Financing Activities (2,827,000) (2,981,000)

Change In Cash and Cash Equivalents 1,442,000   2,869,000  

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  

INCOME

STATEMENT

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 Charges -   -  

Total Assets 274,098,000   225,222,000  

Current Liabilities

Accounts Payable 16,453,000   16,182,000  

Short/Current Long Term Debt 3,933,000   4,369,000  

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 Charges 28,639,000   24,677,000  

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)

BALANCE SHEET

STOCKS • Started traded in NYSE July 3,2000

• As well in the London Stock Exchange

• They first traded through• Bell Atlantic

• Ticker Symbol: VZ• Current Stock Price

• http://finance.yahoo.com/q?s=VZ

• Current P/E Ratio: 14.7 • Earnings per share: $3.2• Trends

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.