Erik Peterson Case
Section 1 Group 11 Eric Peterson Case
I. BACKGROUND: CelluComm and GMCT and the Industry AT&T’s Bell Laboratories cellular telephone networking innovation had enabled several cellular network operators to get licenses from the FCC to operate in separate license territories right about the same time AT&T was broken up in early 1980s. These operators were either companies like Cellular Communication Services, Inc. (CelluComm) or small entrepreneurs who had won license territories through the lottery system. CelluComm’s president and founder Ric Jenkins was known for being an aggressive businessman who had extended it to a 200 million dollar enterprise ranking in the top 20 of the industry. Key to CelluComm’s success was winning some metropolitan areas early and acquiring licenses from small entrepreneurs. Green Mountain Cellular Telephone Company (GMCT) was a subsidiary of CelluComm in New Hampshire and Vermont. GMCT was a preoperating system, meaning it was still in construction and not operational. Without major problems, GMCT was scheduled to be operational in early February. GMCT was located in an area of high potential economic gains. II. Problems faced by CelluComm and GMCT 1. An unclear reporting organization and poor communication with management at the Los Angeles headquarters. When Peterson was first hired on, he was not sure who he would be reporting to; he also found himself clashing with the wishes of headquarters regarding the salaries of his employees, termination of employment, and indecision with regard to technological decisions pertaining to the preoperating systems. This in turn led to pay cuts and tension with his employees and multiple missed deadlines. 2. Existing employee dynamics, politics and cultural differences among his GMCT team; this included a lack of respect for one another, poor communication, and personal pride. Peterson struggled
I. BACKGROUND: CelluComm and GMCT and the Industry AT&T’s Bell Laboratories cellular telephone networking innovation had enabled several cellular network operators to get licenses from the FCC to operate in separate license territories right about the same time AT&T was broken up in early 1980s. These operators were either companies like Cellular Communication Services, Inc. (CelluComm) or small entrepreneurs who had won license territories through the lottery system. CelluComm’s president and founder Ric Jenkins was known for being an aggressive businessman who had extended it to a 200 million dollar enterprise ranking in the top 20 of the industry. Key to CelluComm’s success was winning some metropolitan areas early and acquiring licenses from small entrepreneurs. Green Mountain Cellular Telephone Company (GMCT) was a subsidiary of CelluComm in New Hampshire and Vermont. GMCT was a preoperating system, meaning it was still in construction and not operational. Without major problems, GMCT was scheduled to be operational in early February. GMCT was located in an area of high potential economic gains. II. Problems faced by CelluComm and GMCT 1. An unclear reporting organization and poor communication with management at the Los Angeles headquarters. When Peterson was first hired on, he was not sure who he would be reporting to; he also found himself clashing with the wishes of headquarters regarding the salaries of his employees, termination of employment, and indecision with regard to technological decisions pertaining to the preoperating systems. This in turn led to pay cuts and tension with his employees and multiple missed deadlines. 2. Existing employee dynamics, politics and cultural differences among his GMCT team; this included a lack of respect for one another, poor communication, and personal pride. Peterson struggled