Strategic Analysis of MCI Communications

The strategic analysis is performed within the framework of three questions. These questions, stated from the perspective of the company, are as follows:

At the beginning of the 1990s, MCI Communications was the second largest longdistance carrier operating in the American telecommunications industry (Woodlief, 1990). MCI's share of this market has grown to approximately 15 percent (Woodlief, 1990).

At the beginning of the 1990s, MCI's primary business is voice transmission. The company has in excess of five million customers (Woodlief, 1990).

In answering the question "where are we going?," the starting point is 1990. Thus, the answer to the question relates to the 19911992 time period.

In the mid1980s, MCI's primary goal was to become a comprehensive provider of telecommunications services in the United States (Byars, & Creecy, 1986). At that time, the company had no hopes of displacing AT&T as the longdistance market leader; however, it did intend to aggressively pursue market share growth (Byars, &

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panded definition of the external environment includes the following elements: 1. Economic factors. The economic factors which have the greatest impact on an organization's strategic planning are (a) the stage of the business cycle, (b) trends in price inflation and deflation, (c) monetary policies, (d) fiscal policies, 6(e) international balance of payments, (f) international balance of trade, and (g) governmental budget deficits and surpluses (Glueck, 1984). 2. Governmental and legal factors. The governmental and legal factors which most directly affect an organization's strategic planning are (a) wage and price controls, (b) equal opportunity laws, (c) occupational safety and health laws, (d) consumer credit regulations, (e) zoning laws, (f) environmental protection laws, (g) consumer protection laws, (h) labor relations laws, and (i) plant termination laws (Glueck, 1984). Additionally, governmental actions affect strategic planning conducted by organizations through (j) governmental purchasing policies, (k) governmental subsidies for selected industries, (l) export and import laws, (m) antitrust laws, and (n) taxation policies at all levels of government (Glueck, 1984). 3. Market and competitive factors. Th
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Approximate Word count = 2636
Approximate Pages = 11 (250 words per page)

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