Verizon Notes:

Provide a critique of what the organization was attempting and provide suggestions on what could have been done differently to improve the application.
Profit of 6 billion dollars, but falling stock price of by sub 2%. Verizon wants to cut health benefits for 45,000 union workers The profitable arm of Verizon is the wireless division, which is comprised of non-union workers, and makes up 94% of operating income. Home phone lines are dropping at 8% per year. 2006 there were 47 million home phone lines as compared to 2011 only 25 million. Despite the large drop in subscriptions employment has dropped from 252,000 to 196,000 Last year Verizon paid $1 billion in severance to coax another 11,900 union members to retire. Verizon's total bill for the decade's worth of severance costs comes to a whopping $18 billion, according to an analysis by Craig Moffett of Sanford Bernstein & Co. (1) In cases like these, where the pie is shrinking, management may have to legally separate the two businesses in order to avoid cross subsidization. When the business in question has no surplus, the union's position is greatly weakened. (2) Because such an initiative would benefit wireline businesses more than the cable companies, it offers a way for both Verizon shareholders and the union to gain. Even if it does not surface in this round of negotiations, don't be surprised when wireline operators, unions, and the national government devise a fiber initiative that jointly advances their separate agendas. (2)

Chapter 15

(1) http://tech.fortune.cnn.com/2011/08/08/both-sides-could-lose-in-verizonstrikes/ (2) http://management.fortune.cnn.com/2011/08/16/verizon-strike-can-bothsides-win/