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Verizon Management Styles

VerizonManagement Styles


VerizonManagement Styles

Verizonwas formed after two big and successful companies merged. The mergerbetween Atlantic Corporation and the GTE Corporation was a means toenhance production and increase customer base as well as thefinancial base. Verizon Inc. is among some of the largestcommunication service providers in the U.S, and the operations of thecompany span across 28 different states serving both businesses andhomes across its jurisdiction. Verizon has a customer base of about49.3 million people across the country and a total of 215,000employees. Over the past five years, Verizon has registered anaverage of $71 billion from its various business segments across theinternational market. Despite the fact that Verizon is a youngcorporation established in 2000, it is founded on a solid history andfoundation of its parents. Both Bell Atlantic Corporation and GTECorporation had immense operations locally and internationally andtheir merger was an enhancement of their operations currentlyexhibited in Verizon. The capabilities of the two companies beforetheir merger characterized provision of telephone access, wirelessservices and networks, and internet based services.

VerizonCommunications has adopted well defined goals and values over thelast 15 years in a bid to align its operations to the internationalmarket. However, the company needs to review and reestablish itsmission and vision statements and this is where the role ofmanagement and the styles of management come into being. Verizon’sstrategies and operations are mainly orchestrated by management whoact as the drivers of the company. Management at Verizon is taskedwith the mandate of planning, controlling, organizing, staffing, anddirecting. Both long term and short term strategies in the companyare meant to ensure that employees and managers stay focused on themission and vision statements. Verizon’s financial health ispositive and at the same time questionable. For example, the companyregistered a revenue margin of about $67 billion in 2002, but a netincome of only $4 billion owing to debts and expenses. Similarly,Verizon continued the same trend with a net income of $3 billion in2004, and $7.8 billion in 2005. The latest net income marginsregistered by the company have gone as high as $9.63 billion in 2014and $17.88 billion in 2015. The continued increase in net income canbe partially attributed to a change in leadership styles and adoptionof effective and reliable management strategies. Thus, the role ofmanagement in corporations cannot be forfeited especially amid thechanging market environment.


Verizonhas a hierarchical organizational structure. At the apex is the CEOwho commands the entire operations of the company. However, the CEOreports to a board of directors in which he is a member. LowellMcAdam is the CEO and Chairman of the company and is mandated tocontrol both the domestic and international operations of thecompany. A close analysis of the organizational structure of thecompany shows that each division has a hierarchical structure(Lomberg, Kollmann, &amp Stöckmann, 2016). This is to mean thatthere is one supreme manager who controls the people below him orher. Verizon Corporation is segmented on the premise of region andactivities. For example, there are regional offices headed by vicepresidents who report to the overall president at the head office. Atthe same time, there are departmental heads reporting to regionalmanagers. Thus, Verizon’s organizational structure is complex andmultifaceted owing to the multiple operations and span of control ofthe market associated with the company. Figure 1 below shows theorganizational structure of Verizon from its headquarters.

Figure1: Verizon Organizational Structure

Seniormanagement in the company is tasked with the responsibility ofestablishing the corporation’s overall direction, and this includesthe operations of the telephone companies.

DomesticTelecom Organizational Structure

Thedomestic telecom group associated with Verizon communication ismandated to serve consumers and customers in the 29 states anddistricts within which the company operates. Figure 2 below shows theorganizational structure of domestic telecom.

Figure2: Domestic Telecom Structure

Otherorganizational structures based on regional and departmental officesassociated with Verizon Communications can be depicted as below:

Figure3: Engineering Organization

Fromthe review of some of the organizations within Verizon Inc. it can benoted that each organization is led by a vice president who reportsto the president of the company. The vice presidents manage a groupof other low level managers who in turn manage low level employees inundertaking company operations.

CorporateSocial Responsibility

Corporatesocial responsibility refers to specific business activities andprocesses inclined towards benefitting the society. CSR activitiesinclude giving away portions of company proceeds to charityorganizations, implementation of greener initiatives, enhancingeducation and helping the society in times of crises or disasters(Gulski, 2011). Verizon has a CSR policy that sets the framework forcarrying out CSR activities. CSR undertakes operations that renderrelief to families affected by natural calamities like floods,cyclones, and earthquakes. At the same time, the company partnerswith relevant stakeholders in:

  • Eradicating poverty and hunger in the society

  • Promoting education and literacy in the society

  • Promoting gender equality and equitable distribution of resources

  • Ensuring environmental sustainability

  • Protecting the national heritage

Verizonmakes use of different strategies to ensure that it attains its CSRobjectives and examples of the strategies include organizing sportsand other related activities, providing prizes and awards to peoplewho show exemplary performance in various areas, planting trees andfinancing different projects that align to the its CSR objectives. Inorder to manage its CRS objectives effectively, there is a dedicatedcommittee on CSR initiatives. The roles of the CSR committee includethe formulation and recommending of the best CSR policies to theboard, identification of the projects and activities to be undertakenby the company, providing recommendations to the board on whatmeasures ought to be taken to improve performance in the CSRcategories, ensuring compliance to the CSR policies, and monitoringperformance of the CSR activities. Adoption of the CSR framework is amanagement strategy that is inclined towards improving the reputationand image of the company in the market. Through the CSR mandates,management seeks to rebuild and constantly renew the image of thecompany to the consumers. Consumers are able to interact positivelywith the company if they believe that the company’s foundation isbased on creating a better society.


VerizonCommunication serves approximately over 100 countries in the world.According to management, the company leverages on direct investmentsstrategy to expand its operations across the world: especially inforeign markets. Owing to the nature of the products and servicesassociated with the company, Verizon requires a reliable localinfrastructure before it can operate appropriately. Thus, whenVerizon seeks to sale its products to the consumers outside the U.Smarket, it directly invests (Angeline &amp Sudha, 2014). However,about 90% of the company’s products are internet based, so thecompany can offer the services anywhere in the world with minimalinterruptions. One of the main strategies that Verizon uses to enterforeign market is the acquisition of foreign companies. According toa research conducted by Marce Kelly, foreign acquisition paves wayfor companies to gain a foothold in the market much quicker (Samad &ampAbdullah, 2012). In 2011, Verizon was able to acquire two companiesin the global business solution space. The acquisition of TerremarkWorldwide Inc. and the CloudSwitch Company enhanced Verizon’sstrategy to deliver a portfolio of high demanded and secure businesssolutions across the world. Recently Verizon tried to enter theCanadian market. Management strategy to bestow the operations of thecompany in the Canadian market is based on the new rules in Canadathat allow foreign ownership of telecom companies with less than 10%market share. At the same time, Verizon management wanted to takeadvantage of the 700MHz auction that was done in 2014. The companywent further and acquired two small Canadian companies Wind Mobileand Mobilicity.

Someof the main factors that have driven Verizon’s globalizationstrategy include stiff competition, need for large customer base,need for economies of scale, and the need to have a backup plan tocushion against internal and external shocks (Aripin, 2013). Verizonis not the only telecom companies that going for a global reach. Thecompany is offering cloud computing services in Europe and Asiaalthough it faces stiff competition from other corporations likeAT&ampT, HP, Amazon that have almost the same financial capacity.However, according to Verizon’s chief strategist, Verizon was thefirst company to market and that makes it one of the most recognizedas the largest revenue generator in the world. It is the massiveprofits the company has enjoyed over years that are pulling morecompetitors into the industry. In order to expand to foreign markets,Verizon must counter a wide range of challenges. Management mustcarefully navigate any anti-trust lawsuits. Another issue is thebristling response from local companies in the markets that Verizonwould want to enter (Bratnicka, 2015). There is no doubt that foreigncompanies will always try to put up a fight whenever they see a newcompetitor enter the market. However, Verizon relies on a team ofknowledgeable and skilled managers who strategize and spearhead theoperations of the company. Verizon’s management normally adopts aslow and steady growth pattern a technique that has worked for thecompany over the last decade.




  • Strong image and reputation in the telecom industry.

  • 4G network capabilities that differentiates it from other smaller companies.

  • Strong brand and global goodwill

  • Highest market share in the U.S

  • Variety of Services: fixed line and mobile services, broadband and fixed line internet services, digital television and network services.

  • A large employee base of about 190,000

  • Higher prices as compare to smaller service providers in the market.

  • Presence of the company is majorly felt in the U.S.

  • Complex organizational structure



  • Continued expansion of the audio conferencing service access in the world and more specifically in the U.S.

  • Growth of the VOIP use in the market.

  • International expansion and acquisition of foreign corporations.

  • Intense competition in the market: main competitors in the U.S include AT&ampT, T-Mobile and Sprint Nextel.

  • Strict regulations FCC regulations

  • Cannibalization due to the provision of VOIP and wireless services.


Verizon’sbusiness strategy is based on operating income. The company is themost profitable service provider in the U.S when it comes to thetelecom industry. Thus, management has constantly put measures inplace to differentiate their products while focusing on gaining alarge customer base in the world market (Efferin &amp Hartono,2015). The center of attention of management has always been toprovide high quality services in response to the growing demands. Thecompany’s competitive strategy is enforced by the followingfactors:

  • High network technology

  • Evolution data optimized

  • Quality and reliable customer service

  • Wireless data, messages and multimedia offerings

Themajor competitors of Verizon Communications include AT&ampT,T-Mobile and Sprint Nextel. However, Verizon has a top spot in theprovision of telecommunication services, serves as a trustedcommunication service provider, constantly invests in innovation andhas a strong marketing team that promotes its products and services(Naranjo-Gil, 2010). Verizon is still the leading communicationservice provider in the U.S owing to management capability to assessthe market and provide the required services.


Verizon’stop three strategies to position its products and services in themarket include:

  • Pursue 4G technology and ensure that there is transition from CDMA to GSM

  • Be the first company to bring FiOS into homes in the market both locally and internationally. The essence of this strategy is that it will focus on increasing speed, quality and flexibility of the services offered, and it will bring about opportunity for premier quad bundling.

  • Focusing on increasing investment in research and development in a bid to ensure that there is long term evolution of services and products.

Verizon’sproduct positioning map can be illustrated as shown below:

Figure4: Product Positioning Map

Thefocus of the company is on provision of quality products and servicesat low cost. In addition, to improving its products, the company haveappropriated positioned itself in the market through itsglobalization strategy. By entering into about 160 countries acrossthe world, Verizon creates a chance to enjoy economies of scale and alarge market base.


Accordingto Verizon management, employees in the company own their careers.The company has invested into employee continued growth anddevelopment through routine training programs and workshops. Thecompany ensures that all the employees are able to handle the latestchallenges in the market appropriately (Kim, Lee, &amp Rhee, 2015).According to the customer service manager, the role of employees inenhance corporate image and identity cannot be taken for granted.Thus, the company has constantly provided tools and policies thatguide employees in their quest to become credible and reliableprofessionals in different fields. Verizon is depicted as a place togrow owing to its infrastructure and regulatory framework thatcompels employees to enhance their skills and knowledge.

Further,employees are Verizon are entitled to medical or health benefits.Parents with children are given an opportunity for their children toenjoy day care program. At the same time, management has devised astrategy that rewards the best performers and encourages lowperformers to work harder. Despite of the tremendous steps undertakenby management to improve its relationship with the employees thereare challenges that have been experienced (Othman, D`Silva, &ampMohammed, 2012). For example, in 2015, employees went on strikeciting neglect and poor working conditions. However, managementresolved the issue by enhancing the working environment and ensuringthat all the employees are treated equally and compensatedappropriately.


Verizon’sprimary management style is mainly the bureaucratic managementapproach. The adopted management style mainly accrues from thecomplexity and size of the company (Samad &amp Abdullah, 2012). Asillustrated before the company has a complex hierarchical managementstructure. Top management is responsible for decision makingprocesses while the lower level managers are responsible forexecution of tasks as required by the top level managers (Angeline &ampSudha, 2014). However, occasionally are allowed to make decisions onsmall issues that may not impact overall performance of the company.Lower level management ensures that there is constant communicationbetween the employees. The main communication channel adopted is thetop down technique whereby the top level management pass instructionsto the employees following the hierarchical ranks. The bureaucraticnature of management and the complexity in communication can bedepicted as the main factors for slow and steady growth patternsexhibited by the company since its foundation (Bratnicka, 2015).Moreover, employees in the company are promoted on the basis of theirperformance. The human resource department carries out assessmentsand reviews to determine the best candidates for top positions.


Verizongrowth and development is pegged on the management styles andstrategies adopted over the last decade. The company is based on theprinciples of a bureaucratic system where conformity to laws,regulations and policies is paramount in getting the work done.Although there are instances when employees are required to maketheir decisions however, they have to put it in writing or formalizetheir decisions to avoid and confusions on future. Over the years,top level managers have devised unique and reliable strategies tobetter position the company globally. Continued innovation andresearch and development seem to be the secret weapon of growth inthe company. In order to compete effectively and thwart the effortsof major competitors like AT&ampT or Amazon, Verizon has constantlyensured that it improves the skills and knowledge of its employees soas to match new demands in the market. Well equipped employees arelike fully fuelled engines that will drive for longer distanceswithout any problems. Further, acquisitions have been other forms ofstrategies adopted by management in a bid to attain high revenues anda large market base. Through acquisitions the company is able topenetrate foreign markets. Finally, just like other organizations,Verizon faces a number of challenges that include employee changingdemands and requirements, economic fluctuations, risks in foreignexchange rates and the changing market dynamics. Fortunately, thecompany is well placed and has a solidified management approach thatwill propel it into the future.


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