Case | HBS Case Collection | March 1992 (Revised October 1994)

AT&T Consumer Products

by Joseph L. Badaracco Jr.

Abstract

Describes the factors AT&T Consumer Products managers considered in deciding whether to locate a new plant for telephone answering machines in the United States, Asia, or Mexico. Describes in depth the restructuring of AT&T during the 1980s, the competition facing its consumer products division, the division's overseas manufacturing strategy, the Mexican economy, and the country's macquilodora program. Encourages students to analyze where a company's and an executive's responsibilities lie in making a complex plant-siting decision involving overseas operations, and in making decisions about pay, benefits, bribery, gender-based hiring, waste disposal, and so forth in operating in developing countries.

Keywords: Restructuring; Competitive Strategy; Trade; Management; Operations; Crime and Corruption; Executive Compensation; Selection and Staffing; Demand and Consumers; Asia; Mexico;

Citation:

Badaracco, Joseph L., Jr. "AT&T Consumer Products." Harvard Business School Case 392-108, March 1992. (Revised October 1994.)