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Situation Analysis And Problem Statement: Global Communications

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Autor:  anton  04 December 2010
Tags:  Situation,  Analysis,  Problem,  Statement,  Global,  Communications
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Situation Analysis and Problem Statement: Global Communications

University of Phoenix

Situation Analysis and Problem Statement

There are different ways to approach defining the problems facing an organization; the focus needs to be on defining the problem correctly. Thus far in our teachings we have examined the foundations of Problem Based Learning, the 9-Step Problem-Solving Model and Situation Analysis and Problem Statement. Wikipedia, The Free Encyclopedia defines Situation Analysis as "a marketing term that involves evaluating the situation and trends in a particular company's market. Situation analysis is often called the "three c's", which refers to the three major elements that must be studied: customers, costs and competition". The Problem or Opportunity Statement is described in the White Paper Defining the Problem: The Critical Step to Realizing Opportunities as "developing a problem statement that will enable a leader to create value" and involved 5 steps: 1) Scan the environments thoroughly with the intent to move forward and create value, 2) Turn problems into opportunities, 3) Write a statement that allows for many possible solutions, 4) Make it motivational and 5) Make it clear and simple.

The context of the paper will examine the Case Study of Global Communication and start with a situation analysis by providing a brief background of the scenario, identify the issues and opportunities, explore stakeholder perspectives and ethical dilemmas. Continuing through the problem definition guidelines a Problem Statement will be developed and End State Goals will be identified.

Situation Background (Step 1)

The telecommunications industry is becoming more competitive as cable companies have entered the market offering customers complete solutions to their communication, entertainment and technological needs. This has challenged existing industry leaders to find new ways to meet their clients' needs and try to remain one step ahead of the competition. Global Communications is an example of one company that has fallen victim to increased competition and is feeling the impact in their bottom line. Three years ago their stock was trading at $28 per share and had dropped to a current value of only $11 per share. The extreme decline in market share has the company looking for opportunities for expansion, technological advancement, and cost cutting measures to remain competitive in the industry. The Executive Leadership Team has outlined a strategic plan they believe will enable Global Communications to gain back some of the local market by offering not only complete solutions to their customers but also a new array of services that would put them on the globalization telecommunications map. In addition, they have identified cost savings opportunities to enable these advances without impacting the company's bottom line and improve profitability. The strategic plan has been presented to the Board of Directors and, too much of the Executive Leadership's Team surprise, the Board has agreed with their plan and are now faced with putting the plan into action in what appears to be a quick timeframe. Katrina Heinz, Chief Executive Officer, announces the approval to the Executive Leadership Team and calls a meeting to begin exploring the challenges, opportunities and dilemmas they will be facing as they start to implement the strategic plan.

Issue Identification

There are four primary issues that Global Communications will encounter as they begin to implement their strategic plan: Outsourcing, Union, Employees, and Corporate Identity. The detailed challenges of each are outlined in Table 1.

Opportunity Identification

There are four opportunities that Global Communications should focus on as they begin to implement their strategic plan: Outsourcing, New Services and Broaden Technological Advancement, Shareholders, and Employees. The detailed opportunities of each are outlined in Table 2.

Stakeholder Perspectives/Ethical Dilemmas

According to Wikipedia, The Free Encyclopedia, early definitions of Stakeholders pointed to a person who held money or property while the owner was determined. Over the years, the definition has taken on new meanings to include the following:

В• People who will be affected by an endeavor and can influence it but who are not directly involved with doing the work.

В• People who are (or might be) affected by any action taken by an organization or group

В• An individual or group with an interest in the success of a group or an organization in delivering intended results and maintaining the viability of the group or organization's product and/or service.

В• Any organization, governmental entity, or individual that has a stake in or may be impacted by a given approach to environmental regulation, pollution prevention, energy conservation, etc.

В• A participant in a community mobilization effort, representing a particular segment of society (Wikipedia, 2006).

These definitions open the door to essentially any person that has contact with Global Communications whether her or she is an employee, stock holder, customer, supplier, or sub-tier vendor - they are all stakeholders. Some of the ethical dilemmas that Global Communications will face in implementing their strategic plan are identified in Table 3. These are just a few of the issues that are possible based on the information at hand. Other problems are inevitable as Global Communications develops a Problem Statement and considers the guidelines for resolving the problems in the most effective and expeditious manner.

Problem Definition (Step 2)

The Problem Statement identified for the scenario thus far is: For Global Communications to find a way to broaden their global position in the marketplace by identifying new products and services to offer to their customers and cost cutting measures that will have the least amount of impact on employees while offering increased profits to shareholders and ensuring long lasting prosperity of the organization. The Problem Statement considers all stakeholders and has a focus on the future of the organization. There are many possible solutions to this problem/opportunity statement, including but not limited to, possible outsourcing of some job functions, restructured pay scales, union negotiations that benefit all stakeholders in the interest of keeping as many jobs stateside as possible, etc. This statement is an opportunity statement in that it is looking at how Global Communications can add value to the industry, its employees, vendors, and shareholders. If people truly are Global Communications' edge and if there is organizational commitment then negotiations and agreements might be reached at a minimal impact to union jobs. Global Communications will not know the answer until they ask the questions and explore the opportunities and define end-state goals.

End-State Goals (Step 3)

The end-state goals in the Global Communications scenario to this point can be summarized as follows: 1) increased market share, 2) new service offerings through partnerships with satellite and wireless providers, 3) aggressive marketing strategies to position Global Communication as a leader in the industry both domestically and internationally, 4) improved profitability through cost cutting measures and opportunities and 5) improved employee and union relations.


Throughout this paper we have examined the steps of Situation Analysis and Problem Statements relating to the Global Communications scenario. The first step in this process is for Global Communications to conduct a situation analysis. This involves identifying and analyzing the primary issues, opportunities, stakeholders and potential ethical dilemmas surrounding the strategic plan proposed and accepted by the Board of Directors. By doing so, they will be better prepared in defining the most effective problem statement and determining the end-state goals.

During the course of this exercise I have come to believe that by using this process Global Communications will not only be able to address potential problems but arrive at other options to achieve their long terms goals and not limit the organization to the outsourcing recommendation.


University of Phoenix (2006). Week four materials. Retrieved March 15, 2006 from University of Phoenix, Week Four, rEsource, MBA 500 - White Paper Defining the Problem: The Critical Step to Realizing Opportunities

Wikipedia contributors (2006). Situation Analysis. Wikipedia, The Free Encyclopedia. Retrieved March 15, 2006 from http://en.wikipedia.org/wiki/Situation_analysis

Wikipedia contributors (2006). Stakeholders. Wikipedia, The Free Encyclopedia. Retrieved March 15, 2006 from http://en.wikipedia.org/wiki/Stakeholders

Table 1



Outsourcing В• Cultural differences

В• Language barriers

В• Geographical implications

Union В• Potential legal issues (i.e. breach of contract)

В• Lack of "buy-in" to strategic plan

Employees В• Morale

В• Retention

В• Competition

Corporate Credibility В• "Our Edge is People" campaign

В• Negative PR

В• Customer impact

Table 2



Outsourcing В• Lower labor costs

В• Lower salaries paid to employees transferring to Consumer jobs

В• Reduced unit costs

New Services and Broaden Technological Advancement В• Complete solutions

В• New Services

o Satellite broadband

o Video conferencing

o Wireless internet access

o Mainframe information remote access

Shareholder В• Increase stock value

В• Increase market share

Employees В• Explore new employee motivational and retention programs

o Restructure compensation programs

o Implement reward and recognition programs

o Implement retention bonuses

Table 3

Stakeholder Perspectives and Ethical Dilemmas

Stakeholder Perspectives and Ethical Dilemmas

Stakeholder Group Interests, Rights, and Values Ethical Dilemmas

Executive Management Increased market share and globalization, profit making, ethical decisions How does Global Communications achieve an increased market share and globalization without sacrificing making ethical decisions when considering stakeholders?

Employees Continued employment, comparable wages and benefit packages Are employees willing to negotiate a lower pay structure and possible higher co-pays for benefits in order to maintain employment?

Shareholders Increases profits and market share, dividends and profits, making money As shareholders in Global Communications do you sacrifice US jobs to a foreign country for the sake of making more money?

Union Ensuring jobs for Union workers, access and knowledge of organizational information, pursuit of equality and fairness What are the selection criteria for offering employees jobs in the Consumer division В– job performance, tenure, long time friends, and lower salaried people? Is Global Communications in breach of contract?

Corporate Identity Ethically and morally conscience, market share, goodwill Can the organization continue to promote the highly publicized campaign of "Our Edge is People"

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