American History

Situation Analysis and Problem Statement

This paper will explain and give a specific overview on Global Communications during a time of transition within the company. Several variables will be taken into consideration during the company’s plan to continue to be a major player in today’s telecommunication industry. We will review each variable and how to create opportunities in the wake of change that may be perceived as negative for employees as well as customers. By evaluating the scenario, identifying the right problem and stating an end state goal, we can take a look at what options Global Communications has and what strategy will ultimately provide growth and profit for the company.

Situation Background (Step 1)

In today’s global market, being able to keep up with industry change and increased competition is becoming more and more difficult. One of the most competitive and saturated markets is in the telecommunication industry. Global Communication was a major player a few years back when the technologies of various communications methods were still being developed. Since then, company mergers and alternative communication methods have forced larger companies to look at restructuring in order to maintain market share. Global communication is decreasing in profitability resulting in decreased stock value for shareholders and investors. In order to sustain interest and value, Global communications must look at alternatives solution to save cost and expand its services into foreign markets. While completing this transition, they must also maintain company morale and brand name in order to continue future success for the company.

The major players in this transition consist of the Union, top executives, employees that are affected by the transition and shareholders. As we know, with change comes conflict, and with conflict comec an array of emotions and attitudes toward the change. Global Communication will try to come up with a plan to maintain critical business processes and customer base while implementing lay-offs and cost reduction within the company.

Issue Identification

There are several issues that global communication has to consider before proposing a final plan. One issue that Global communication faces is increased competition in recent years. Since establishing it self as a major player a few years back, international businesses are now offering the same services as well as seeking the same customer base. Whether the service is as simple as the telephone, or as complex as viable high speed satellite connections, it seems that today’s society has a minimal need for at least one type of communication service.

Another issue is the expansion of services from international companies. At a lower labor cost, companies from across seas can offer the same products of most major telecom companies at a slightly lower cost. The ability to offer the same service through satellite to just about anyone in the world causes major competition problems for high wage companies. Competitive cultures such as the U.S. have high salary expectations and wage regulations that translate to loss of productivity and profit.

The third issue that exists for Global Communications is the merge of competitive corporations in order to develop a service that entails all communication variables within one company. By creating a partnership, these entities are able to offer a one-stop-shop for customer’s communication needs. By doing this, if a customer chooses to utilize these companies for all services, the partnered businesses may be able to offer all services at a discounted rate giving them a definite advantage in the market.

A fourth issue for Global Communication is the repercussions that a major transition within the company may cause. Current employees play a critical role in the success of future operations and will need to be stabilized in order for a successful transition. The Union and other employee groups could cause negative press due to local lay-offs and job restructuring. Global Communication must implement a plan for minimal backlash and still be able to retain key employee buy-in for future processes and company well being.

The last issue deals with society and how they perceive a company that caused lay-offs in a local market. More than ever, U.S. citizens embrace patriotism and would prefer companies to conduct business within the United States in order to maintain the economy and provide job security for loyal employees. The community may also feel uncomfortable working with foreign companies due to cultural differences and work ethic.

When issues arise, there is always a path for opportunity. By looking at the correct problem, Global Communication can capitalize on new ideas during these times of change.

Opportunity Identification

The first opportunity for Global Communications would be to increase market share by expanding into foreign markets. By doing this, not only does the company gain new customers but they also utilize the international workforce and save cost due to lower wages.

Another opportunity is to create a new business environment for existing employees for a positive transition. By educating existing employees on how they will benefit from future changes, Global Communications can boost morale and productivity from those who are fortunate enough to continue working for the company.

The opportunity to expand services by acquiring a satellite company will be critical for future