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Team 3 Project 7 Mike Lindamood John Pallotta Jeff Plitt Jennifer Yontz-Orlando

December 5, 2003. Team 3 Project 7 Mike Lindamood John Pallotta Jeff Plitt Jennifer Yontz-Orlando. MCI: “Rebuilding the Brand”. Global Ethernet Backbone Industry / Competition Strengths Stakeholder Management Recommended Business Strategy Implementation Plan. Overview.

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Team 3 Project 7 Mike Lindamood John Pallotta Jeff Plitt Jennifer Yontz-Orlando

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  1. December 5, 2003 Team 3 Project 7 Mike Lindamood John Pallotta Jeff Plitt Jennifer Yontz-Orlando

  2. MCI: “Rebuilding the Brand”

  3. Global Ethernet Backbone Industry / Competition Strengths Stakeholder Management Recommended Business Strategy Implementation Plan Overview

  4. Communication Solutions

  5. Industry Trends • Bundling of Telecom Services • Local , LD, Caller ID, Voice Mail, E-mail • Internet Calling (VoIP & Telephony) • Broadband (Fiber Optic Technology) • DSL, High Speed Data Transmission • Wireless (Wi-Fi) Technology • Wi-Fi Hot Spots, Text messaging, etc. • International Growth

  6. Emerging Technology • VoIP • Web Conferencing • Cost Savings • $20B Annual Growth Industry • Barriers between IT and Telecom Blurring

  7. Domestic Competition within Industry

  8. Top Ten Ranked by Sales 1. Nippon Telegraph and Telephone Corporation (NTT) 2. Verizon Communications Inc. (VZ) 3. Deutsche Telekom AG (DT) 4. France Telecom SA (FTE) 5. SBC Communications Inc. (SBC) 6. AT&T Corp. (T) 7. MCI Corp. 8. Telecom Italia S.p.A. (TI) 9. Telefónica, S.A. (TEF) 10. BT Group plc (BTY)

  9. Domestic LD Service 1. AT&T 2. MCI 3. Verizon 4. Sprint FON Group 5. Quest Communications

  10. Mobile Services 1. NTT DoCoMo, Inc. (DCM) 2. Vodafone Group PLC (VOD) - Verizon 3. Cellco Partnership - Verizon 4. Cingular Wireless LLC 5. Orange SA 6. AT&T Wireless Services, Inc. (AWE) 7. T-Mobile International AG 8. China Mobile (Hong Kong) Limited (CHL) 9. Telecom Italia Mobile SpA 10. Telefónica Móviles, S.A. (TEM)

  11. Risks for MCI • Decrease of Local and LD rates • Govt. Regulation of Internet Calling Process • Small Companies Entering Market and Diluting Customer Base • MCI’s Limited Wireless Presence • Cable Offering VoIP Via Cable Networks • Federal Court Mandates to Share Networks • Competitive Rivalry Between Existing Players: Legal action by AT &T and Verizon

  12. Strengths of MCI • UUNET • Largest Global IP Portal • 50% of Global On-line Traffic • Loyal Customer Base • Government Business ($1B per year)

  13. Stakeholders • New Investors • Wall Street and Media • Customers • Consumers • Business & Government • Employees • Lenders

  14. Business Strategy • Core Competency: UUNET / Backbone • Local / LD Cost Reduction (# 2) • Utilization of Cash Reserves – IP technology • Convergent Technology • Alliances • Government Business

  15. Implementation Plan • Management • Strategic Flexibility • Organizational Structure • Ethical and Governance

  16. Management • Continuous Mission Statement • “Flat” Communications • Role Model for Values • Cross-functional Groups

  17. Strategic Flexibility Proactive strategic flexibility will be established throughout the MCI organizational structure.

  18. Ethics and Governance • Breeden Report • Continued compliance and implementation • Internal ethics training • Zero tolerance for non-compliance • All Operations within Code of Ethics • Internal and External Communications will use “Sharing the Commitment to Integrity”

  19. Additional Implementation • Knowledge Mgt. • Ability to share internal knowledge • Employee participation in decision making • Establish incentive programs • Organizational Learning • Continuous process of growth • Feedback from participants • Able to overcome previous attitudes and behaviors

  20. Conclusion / Summary • Rebuilding the Brand • Ethernet Backbone • Organizational Structure • Ethical Operations - Globally

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