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Situation Analysis And Problem Statement

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Autor:  anton  14 March 2011
Tags:  Situation,  Analysis,  Problem,  Statement
Words: 1073   |   Pages: 5
Views: 374

Situation Analysis and Problem Statement

Global Communications feels the pressures of the industries with trying to keep up with its competitors and watching its stock prices fall. Yet the stockholders are giving them a lot of pressure to correct the problem. They need to offer better services than what their competitors are providing to their customers. This paper will discuss the background, the problem, and the end goals.

Situation Background (Step 1)

The entire telecommunications industry has fallen into hard times due to the Cable Companies entering the competition but Global Communications has been hit hard with not just the increased competition but smaller profit margins, the costs of doing business, and have realized that they need a new strategic plan, but will need help in implementing this.

The problem is not really obvious, as one may think. It is easy to say that there is too much competition and blame outside entities for their woes. Ultimately, the real issue is GC’s inability to effectively compete with new players in the market (i.e. cable companies). Often this is the secondary to a failure to differentiate their offerings from those of the competitors. It sounds as if their attempt at differentiation has been “Our Edge is People”. This has two obvious flaws. First, it is in contrast with the apparent reality that their people lack the technical skills to perform the job. Second, differentiation must take the form of something that really matters to the customers. They have already identified the competitive points that seem to be hurting them (new features, televisions, computers, phone service, etc) of and it has little to do with the people. Outsourcing the support jobs may improve the people quality, but unless this is a competitive issue, it may not have a significant effect beyond the reduction in costs.

Issue Identification

o Maintaining employee morale and preventing “brain drain” to competitors, this often occurs following layoffs.

o Maintaining a working relationship with the union and making sure that Maria gets back into good graces with her boss. Maria seems to have a generally favorable attitude toward the company and she could be important.

o Differentiating their new offering from existing competitive offerings. Adding 1000 new sales people are not going to sell a product that has no appeal to the potential customer.

o Maintaining cohesion among top management

o Converting the proposed changes into profit

o Effectively competing more locally and globally…very different games.

o Managing new partnerships effectively and profitably

Opportunity Identification

o Identify markets not currently served (or not served well) by their major competitors and fill that niche.

o Assisting the employees that get laid off.

o Nothing generates future success like current success. If their cost cutting and new competitive plan can improve the numbers, even for a quarter or two, the stock price should rebound a bit.

o Improve their relationship with the union (long term) Identify markets not currently served (or not served well) by their major competitors and fill that niche.

o Increase profits

It is apparent that there is no concern, in the fact that the plan is to grow by serving current customers and that there is no mention of gaining new customers. How important is access to "company information hosted in mainframes" is to a small business owner, because the chances that any small business would have a mainframe computer would be slim. These new partnerships may hold the key, but again, they must be able to differentiate their offering or it will have little effect.

Stakeholder Perspectives/Ethical Dilemmas

Senior management presented the Board of directors a plan in which they are expecting to be implemented as proposed after it has been researched and analyzed sufficiently to ensure success, even if problems have occurred, they just need to inform the board of the adjustments that need to be made

The union has an obligation to the employees, to protect their benefits, their rights and to ensure that they have a job. It is important and the union be informed every step of the way, what is going on with the agency and what is expected of the employees as the change is implemented.

Problem Definition (Step 2)

Global Communications has a lot of issues and opportunities, that can be focused on but there are a couple that could be focused in on the problem statement. In three years, Global Communications will be the leader in the industry by increasing their stock prices, lowering their over head costs, and showing a commitment to their customers as well as their employees. This will also help them meet their end state goals.

End-State Goals (Step 3)

When looking at the end-state goals the first would be profitability, because a business needs to succeed to survive. What may set Global Communications apart from its competitors is by establishing a new product. It is important of the organization to maintain employee morale, union relationships, as well as partner relationships, as they become the leader in the telecommunications industries.


In going through the background of global communications, looking at the issues as well as the opportunities (Maintaining a working relationship with the union and assisting the employees) verses the stakeholders perspectives (in implementing the plan and raising the stock prices) the best solution and most beneficial for the organization would be to retrain as many of the employees they have instead of outsourcing. These employees have the knowledge of the organization and that can be an asset that can be utilized and in laying off the employees the organization would be losing this edge, because the new employees would not have this same knowledge.

What ever the decision that Global Communications makes it will not be an easy one, for individuals will still be losing their positions. It is important to look at the view of all parties involved. To see the whole picture, because if the wrong decision is made, the organization could fail or for that matter even if it is the right decision it can still fail. They need to find the right edge that their competitors do not have, which may seem to be a simple solution, but it is only simple in the words alone.


McShane, S. L. (2005). Organizational behavior (3rd ed.). New York: McGraw-Hill, Retrieved July 20, 2006, from University of Phoenix, Week Four, Resources. MBA500 Foundations of Problem Based Learning Website.

University of Phoenix. 2006. Scenario two: Global Communications. Retrieved July 20, 2006, from University of Phoenix, Week Four, Resource. MBA 500- Foundations of Problem Based Learning Website.

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