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Unit 8.1 Company Blog Executive Summary
BUS523: Quantitative Analysis for decision making
Professor John Carlson
Executive Summary
T-Mobile US, Inc.'s management has been successful in boosting shareholder value.
Since the company's merger with Sprint in April 2020, its stock price has climbed by more than
300%, giving it a market valuation of more than $150 billion. There are several ways to gauge
how well management is doing to boost shareholder value.
Total shareholder return (TSR), a widely used metric, accounts for dividend payments
and changes in stock price. T-Mobile's TSR has recently been steadily rising, and over the last
three, five, and 10 years, it has outperformed the S&P 500. Earnings per share (EPS) is a
different metric for assessing managerial performance. T-Mobile's EPS has also been gradually
increasing recently, and it is anticipated that it will do so in the future.
When evaluating the management's effectiveness, several additional elements might be
considered in addition to these financial indicators. For instance, T-Mobile has a proven record of
retaining customers and building brand loyalty. In addition, the business has had success
introducing new goods and services, including 5G and its MagentaMAX plan.
Here are some specific measures that T-Mobile management has taken to increase shareholder
value:
Merged with Sprint in April 2020.
T-Mobile gained additional scale and negotiating
strength due to this merger, making it the third-largest cellphone carrier in the country.
Launched 5G in 2020.
One of the first cellphone providers to roll out 5G nationally was
T-Mobile, giving it an edge over rivals.
Introduced new products and services, such as MagentaMAX.
A premium wireless
service called MagentaMAX includes unlimited voice, text, and data usage in addition to
additional advantages.
Reduced costs and improved efficiency.
By consolidating its processes and integrating
the Sprint network, T-Mobile has been able to save costs and boost productivity.
Increased customer satisfaction and brand loyalty.
T-Mobile has routinely come out
on top in polls measuring customer happiness. Customers of the business have developed
a powerful sense of brand loyalty.
In addition to the measures, T-Mobile management has also been effective in increasing
shareholder value by:
Expanding its customer base.
T-Mobile has been successful in growing its user base by
providing affordable prices and cutting-edge goods and services. The business has also
had success luring away new clients from its rivals.
Improving its network coverage and reliability.
T-Mobile has made significant
network investments recently, which have enhanced coverage and dependability.
Customers now find T-Mobile to be a more appealing alternative, and it has also helped
the business draw in new clients from its rivals.
Expanding its product and service offerings.
In recent years, T-Mobile has broadened
the scope of its product and service offerings to go beyond merely wireless connectivity.
The business currently provides numerous additional goods and services, including home
internet, TV streaming, and cybersecurity. T-Mobile's revenue and profitability have
increased because of this development.
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Maintaining a strong balance sheet.
T-Mobile has a sound financial position with little
debt. As a result, the organization has the financial freedom to develop its network and
grow its clientele.
Some additional thoughts on the effectiveness of T-Mobile management in increasing
shareholder value:
The innovation and customer-focused culture at T-Mobile is strong. Because of this
culture, the business has been able to create new goods and services that cater to the
needs of its clients.
T-Mobile is a highly effective business as well. By streamlining its operations and
integrating the Sprint network, the organization has been able to save expenses and
increase efficiency.
T-Mobile has a capable management group under the direction of CEO Mike Sievert.
Sievert has a record of accomplishment and a distinct vision for T-Mobile's future.
In conclusion, T-Mobile management has done a respectable job of boosting shareholder
value by making several changes to the business's financial health, customer base, network, and
product offerings. The business is now in a good position to grow going forward. T-Mobile
management has successfully implemented various measures to raise shareholder value. The
company has a solid track record of customer satisfaction and innovation, a stock price that has
climbed dramatically, and earnings per share that have been expanding consistently.
Reference:
T-Mobile® Official Site: Get Even More Without Paying More | T-Mobile & Sprint Merged to
Give You More
. (n.d.). Www.t-Mobile.com. Retrieved October 17, 2023, from
https://www.t-mobile.com/?
&cmpid=MGPO_PB_P_EVGRNBHV_43700071606574149_655199692934&gclid=Cj0
KCQjw4bipBhCyARIsAFsieCwwrkL2J069y_4ImAPj_Ez3m0ZVJPuTquoBpPuKtnU7Ta
zUjvI8fakaAou9EALw_wcB&gclsrc=aw.ds