Introduction
Media and information industry is one of the most competitive and fast-growing sectors in the world. This is due to the rapid advancement in technology which is the core ingredient in everyday interactive operations. This industry is also vital to the global economy in that it is the main gateway to information access and communication.
About 95% of the world’s population uses the technology of media and information industry in their daily activities. However, the majority lack the understanding of how such application software’s, internet access, mobile communication services, and many more such services are innovated and the procedures undertaken by enterprises managing such services to ensure they are available when needed. To have an insight into the operations and moguls controlling this sector, there is a need for research on one of the leading companies in the media and information industry. For this purpose, below is a comprehensive research of the operations, the board of governors, shareholders, and other stakeholders of Verizon communications (Anonymous, 2008).
Company operations
Verizon is among the top most admired company in the global business community has been ranked 41 in the world’s top 500 corporate powers (Graves, 2013). Verizon can be said to have sprouted from mergers and acquisitions of the leading communications companies such as AT&T Corporation, Bell Atlantic, and NYNEX. Verizon, later on, merged with Vodafone establishing the Verizon wireless. As elaborated below one would observe that the standards of professionalism at every level of office are in every aspect transparent and able to meet the many dynamic interests customers have of the services offered by Verizon (Verizon Communications, 2010).
Verizon communications are one of the world’s most prominent companies in the provision of a variety of diverse genre of services regarding communication, entertainment, and information (Verizon Communications, 2010). Verizon precisely establishes an easily accessible chain of availing wireless, wired, broadband and other communication services. The services rendered by Verizon meet the interests and capital budget needs of an immense percentage of the public, businesses, schools, governments, homes (Sasso, 2012). It operates the largest 4G wireless network hence delivering business solutions to a large number of people from different countries all over the world. In the information sector, Verizon communication offers high-speed Internet services together with phone services. Internet services are offered at various speeds depending on the local system’s capability. Verizon also offers fiber to office premises and homes of its subscribers in over 150 countries where it markets this service through FiOS supporting speeds of up to 300/65 Mbit/s. It also offers directory operations in the form of yellow pages known as super pages circulating copies across the United States (Verizon Communications, 2010).
The 21st century has brought with is a fast-paced rate of progression in technology, among them being the inauguration of the FiOs video network services. This introduced FiOs establishment incorporated an optic cable system that accommodates above 500 high definition TV channels inclusive of up to date videos of demand. Verizon ensures its competence is of commendable standards by further cooperating with Direct TV organizations in catering for the pay-tv needs of its supposed clients (Graves, 2013).
The trends in telecommunications comprise of shifts from the tiresome analog to digital technology, from wired to wireless transfer of information, and from narrowband to broadband services, have fundamentally changed the way people keep in touch. The communications department of Verizon company operations delivers a renowned variety of mobile services. Through Verizon Enterprise Solutions information technology products and services, IP communications, and inquiry services are offered. The business of Verizon is held together by the high demand in this competitive industry of services and products that improve the lives of many people in the world through innovation and improved access to technology for satisfying social needs (Verizon, 2012). It would not be wrong to state that Verizon is in the business of providing technology to the world and addressing the major issues affecting the social and environmental aspects of the business environment (Early, 2007). The revenues of Verizon come from telecommunications comprising of the wireless services and the wireline operations with the wireless services having the upper hand in the production of revenue (Longobardi, 2007).
From the communication, information, and entertainment industries, it can be said that the telecommunications industry has the highest returns in terms of revenues followed by the information industry which is faced by the threat of cyberspace risks. It can be said that since all these sectors involve technology they are all growing at a high rate through the communication and information sectors are a step ahead of the entertainment sector. Over the past three years, the revenues of Verizon has only declined once in the year 2010 where it recorded a revenue income of 106,565.0 million of U.S. Dollars and experienced an increment to 115,846.0 million of U.S. Dollars after two years (Verizon, 2012). From this, it can be said that Verizon is growing at an all times high rate.
Since it began Verizon has been expanding through diversification and acquisitions through mergers to expand its network in the industry. It is important to note that Verizon came into being as a result of a merger (Sbeit, 2008). Ever since it has been expanding its network through acquisitions and mergers such for example in 2007, the company acquired cyber trust, which provided security services (Verizon, 2012). This procurement was followed by the acquisition of Terre mark, which took up the prominence of supplying internet hosting systems. The acquisition of Hughes Telematics Inc. ensued the consequent year. It would not be wrong to assume that in its strategies, Verizon puts partnership, mergers, and acquisitions in the frontline as a tool for growth which has so far not failed (Cain, 2010).
Verizon has of recently introduced a partner program which seeks to provide a link to Verizon occupational activities of service with a perspective of widening their outreach success in communications, mobility, and networking (Verizon, 2012). The program comes in three stages that are; resale, sell with an agent, with each having a unique, specialized relation of support from Verizon. Examples of such partner programs include SOVA and General Datatech. Based on the above Verizon seems to be targeting the information sector more than the rest, this may be due to the growing needs of businesses to advertise and access information that leads to reduced cost of production (Goodman, & González, 2013).
Every firm in operation has its challenges in the field it operates. For Verizon, the challenges are in the form of controversies that have been linked to it. For instance, in the year 2011, there was a serious critique claiming that Verizon was dodging payment of taxes even after making a $32.5 billion profit that year. Earlier, in 2008, Verizon was contemplated for yet another claim of firing workers in order to selfishly embezzle the salary expenditure as a top up to their executive pay which recorded a 167% increment by the end of the year 2010 (Graves, 2013). The company had anticipated such accounts of criticism from not only the media but other competitive companies. In response to the above-mentioned claims, Verizon discharged tax payments of above $11.1 billion and further contended an elaborate explanation regarding the decrease in employment was due to unconstrained retirements and not as protested before (Cowling, & Tomlinson, 2005).
Communication tracking companies are an important aspect of the lives of many people in the world today in both simple and complex but vital way. Verizon has continued to be a boost to the social aspect of the development and improvement of the health, education and communication spheres through the expansion the information access facilities. In any ordinary case, a firm will expand by adding up on its limitations experienced and making an analysis for the necessary changes to be made, this enables it to take advantage of existing strengths to expand its line. Verizon through joint ventures has put this into consideration where it holds partial ownership of Verizon wireless at 55% while Vodafone holds the rest (Sbeit, 2008). It should, however, be noted that even the best-performing companies have their weaknesses, for Verizon the calling plans for Verizon wireless cost more than those of competing cellular providers. This is because the users of Verizon wirelesses require data plans that can be as expensive as home Internet service (Boggio, 2013).
The success of every company is bound to face certain opposition and Verizon is not an exception. Political controversies have over the years originated from the many crucial decisions made by the board of directors regarding approval and rejection of certain request from any interested party. One of such contentions was experienced when Verizon’s mail servers decline the incorporation of Europe’s connections. This was a refusal made by default with the intention of decreasing the spam email. Solutions to such connection issues would only be sorted through an agreement by both parties. Another similar incident occurred when Verizon was suspected of having forwarded all their call records of the millions of its customers to security Intelligence services without their consent (Graves, 2013). These revelations made by the media were completely denied by Verizon, and no further explanation was offered (Goodman, & González, 2013). Many were suspicious that the MCI which had been procured by Verizon earlier the same year was responsible. That was a controversy that died a silent death and to date, no answers have been given. There are other controversies surrounding Verizon including DNS redirection, copper wire removal, E-911 failures, Internet blockage, and the FCC ruling (Sasso, 2012).
Board of Directors
The board of directors is a group of experienced and professional people with a duty of effectively overseeing the management and protecting the interests of shareholders. Verizon’s corporate rules require that a large number of the members of the board pass the independence test before the board is said to be independent. These regulatory rules establish a standard for checking the independence of directors. A director is said to be independent after passing this test and the board is satisfied that the director is ethical and is above the NYSE’s and Nasdaq’s governance accepted standards and the additional standards included in the regulations, which identify the types of relationships that would dismiss a director’s independence (Verizon, 2012). The regulations set monetary boundaries at which the board would consider the relationships to be challenging (Bensinger, 2012).
To determine if a director is independent, the board must prove that a director does not have any relationship that is likely to affect his or her ability to act independently. The board comes to a resolution after weighing factual opinions of every director. The management which comprises of a team of thirteen members led by McAdam who is the chairman, chief executive officer of Verizon and also every position of the board has to be put in a check for the protection of the interest of all the stakeholders (Goodman, & González, 2013). McAdam is also a shareholder of Verizon owning shares worth 210,714. The remaining 11 include the senior vice president, Nancy.B. Clark, and 11 male members. The senior vice president has the responsibility of maintaining operational success and process advancement. For this reason, Verizon’s corporate governance rules require that a number of the members of the board be independent directors (Verizon, 2012).
These directors are: Joseph Neubauer aged 72 and is from ARAMARK Holdings Corporation, Sandra Moose from Verizon communications Inc. aged 71, Donald Nicolaisen also from Verizon communication Inc. aged 69, Richard Carrion from Popular Inc. aged 60, Hugh Price from Verizon communications aged 71, Robert Lane from John Deere financial Services aged 64, Clarence Otis Jr. Darden Restaurants are aged 56, M. Keeth from Shell oil company aged 66, Rodney Slater Global options Group aged 58, Melanie Healey from Procter&Gamble aged 52, Kathryn Tesija from Target Corp aged 50, and Gregory Wasson from Walgreen Co. aged 55. Among these, the only shareholder is the CEO McAdam (Verizon, 2012; Goodman, & González, 2013).
With four members including the CEO on the board, Verizon has the highest representation and this cannot affect the decisions of the board as they are below the number needed to pass a decision though it can be said they would have the front hand on matters being discussed in the meetings. Having an average age of 62 the board can be said to be of mature and experienced members capable of steering the activities as required of the entity. The incorporation of three ladies on the board it can be said that the board has the views of the women in their operations (Verizon Communications, 2010).
A considerable number of independent companies have been represented on the board and this ensures no possibility of the likelihood of insider dealings on the business undertaken by the board. The board of directors has three committees comprising of the human resources committee, the audit committee, and the corporate governance and policy committee (Verizon, 2012). Each of these committees has a guideline defining the responsibilities of that committee and each committee has the power to obtain advice from independent advisors who help it in carrying out its duties and responsibilities. The board further incorporates a strategic plan for countering any anticipated contingencies during the performance of a company’s daily transaction activities. The board does this by using a few levels of review. From its reviews of the operations of the company’s business departments and corporate functions, the board takes care of the primary risks associated with those departments and functions (Verizon, 2012). Moreover, the board investigates the risks facing the company’s strategic plan at a strategic planning session and occasionally throughout the year as part of its implementation of the strategic direction of the company (Pagano, 2005).
For Verizon’s board of directors one of its most important duties that it is charged with is to ensure the company’s senior leadership is not stagnant through the development of executive talent and planning for the effective succession of the company’s chief executive officer to competent highly qualified and experienced personnel (Goodman, & González, 2013). As outlined in Verizon’s rules and regulations of corporate governance, it is the duty of the board of directors to conduct an investigative analysis of the management progression of the chief executive officer continuously all year long (Verizon, 2012). This procedure allows for the determination of the supervisory strategies to be applied in the inspection of the competence of the human resource committee which overlooks the proficiency of prominent administration positions. The committee then further offers a conclusive critical report to the board of directors regarding its activities. The board further proceeds to conducting a subversive and consensual executive analysis of the most suited successor the current chairperson. Lowell C. McAdam was subjected to this procedure before becoming chairman of the board. (Verizon, 2012).
A researcher would apply the same method to get information on leading firms bearing in mind the validity of the information. In order for a researcher to get insight into the activities and composition of corporate power, one needs to have the necessary facilities or services that allow access to information in social media. For Provision of such information services, companies such as Verizon are available. Most companies tend not to disclose most of their operations in details for fear that competitors using this kind of information to underpin them (Sasso, 2012). From an ethical point of view, social media research has the advantage of removing the burden that would be placed on a research group. Most people with access to social media are ordinarily not involved in the data collection activities like focus groups or survey. They retrieve data by engaging in online communications. From this research, it is conclusive that the growth of Verizon has attracted not only positive attention but also negative constraints with its recognition. It is the role of the board of directors to ensure that any negative contingencies made by the media do not exceed the positives (Pagano, 2005).
It is the responsibility of the board of directors to ensure a smooth running of the services of its company and counter any possibility of redundancies occurring. The company audit committee is in the continuous process of auditing all aspects of company operations including all employees’ competence (Verizon Communications, 2010). It is through the audit committee that the board of directors is able to take a closer look at all levels of company operations. Being free of any form of redundancy enables the company to gain the confidence of its customers hence broadening its market value and percentage outreach. This is because most organizations use media to follow up on events and impacts of their actions; this means to research on competitors and information useful to organization, to gauge competitors, to control firm and brand superiority, to investigate industry performance, to understand the operations of communications in the business environment, to seek business opportunities, and many more actions that may be of vital importance in their daily interactive activities (Pagano, 2005).
Verizon’s board of directors is made up of individuals that meet up to the required standards of management and Verizon ensures that they are well taken care of by providing stable salaries. This is not only evident in the earnings of the executives of the company but also all its employees. They are all paid by their levels of production. This acts as a motivating strategy and also reduces corruption and embezzlement of finances of the company. There is also a strict adherence to the rules and regulations of the company by all its employees disregarding their ranks. The chairman of the board is also subject to being elected through a specified legislation process in the rules of the company (Verizon, 2012). This seeks to ensure that only the most suitable person takes on that seat. The board of directors has the main ruling regarding any strategies and decisions that need to be made and applied. It is the backbone of the whole multidimensional outreach of the services of Verizon company (Verizon Communications, 2010).
Conclusion
In conclusion from the above thesis, most firms use media as a tool for identifying activities of their organization. Some organizations also use media monitoring tools to track the success of their new product lines and services, to acquire information about competitors and gather industry intelligence. Media access allows a better understanding of the strengths and weaknesses of an industry, identification of new opportunities, and other trends in the business environment (Verizon Communications, 2010).
In the thesis above one can learn several strategies of management applied by the Verizon company that has led to its success. The first and main observance is the division of operations into many different levels all of which contribute to the general management of a company. It all starts with the leader of the company being deserving of that seat. Communication among the different levels of the company is also evident in that the board of directors is able to overlook all services rendered by the company while at the same time having the less large units of operations checking on the progression of the smaller subunits of the company. This way, the value of teamwork will be in constant application (Verizon, 2012).
Making of partnerships can lead to the vast growth of a company. As earlier explained, the Verizon step of merging with Vodafone was the breakthrough of its growth. Making of mergers has played an important role in the growth of businesses (Sbeit, 2008). Verizon has also been in constant exploration of ways of making its reach larger, in that it has been merging with various companies for their specialty in providing certain services; all these, in the end, enhance the quality of service operations of Verizon. It would be of great assistance if other companies used this example and apply it in their management.
References
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