Global Communication

Situation Analysis and Problem Statement: Global Communications

Global Communications is looking to maximize profits and reduce cost by marketing itself on an international level and becoming a global resource. This tend is what it will take for the upcoming communication companies to survive. Global Communications and other telecommunications companies are under tremendous economic pressure. The company must set future goals while making critical changes to the company and possibly the loss of dedicated and skilled employees.

The situation with Global Communications is that the company is looking to realize growth. "An effective outsourcing plan helps teams build better products more rapidly and at a lower cost than those manufactured in-house (Kren, 2006)". The senior team members have decided that in order to maintain pace with the industry, the company must go global. The company plans to locate to Ireland and India. In order for the company to go global, the company has to downsize. Global Communications' union is very unhappy with this decision.

Describe the Situation

Issues Identification

There are several challenges that exist for Global Communications. In the last three years, Global Communications' stock value has depreciated from $28 per share to $11 per share, which is more than 50% a share. Global Communications is also faced with too much competition by cable companies. The company has suffered a huge blow at the hands of cable companies. Due to the layoffs and outsourcing, there will be a loss of many dedicated employees to competitors. The trust that Global Communications has built with its employees will also be lost. Global Communication may also be faced with language barriers. When the customers call to the call centers in India or Ireland, the accent of the workers may cause problems for the customers.

Opportunities Identification

Global Communications has several opportunities that relies on the company becoming a global resource. The realization of growth, through the introduction of new services, primarily to its small business and consumer customers, will pump up Global Communications volume. Global Communication's alliance with a satellite provider to offer video services as well as a satellite version of broadband has opened opportunities in the global market. By globalizing, Global Communication has the opportunity to reduce unit costs for handling calls by nearly 40%, which in turn, will increase the company's profit. Global Communications has also proposed a 15% retention bonus for their employees. The bonus will help offset their employees' salary cut for the first year. The creation of a new set of values will reflect the company's current realities.

Stakeholder Perspectives/Ethical Dilemmas

Each organization within Global Communications faces his own challenges and opportunities. The senior leadership team sees the move as a cost-cutting measure. The senior leadership team wants to see the company expand into the global market and improve profitability. The union, on the other hand does not think that the Global Communications has their best interest in mind. With the 20% reduction of education and health benefits already by the company, the union is not pleased with the move and is calling the move unethical. The union is not supportive of Global Communications' decision to go global. Global Communications' employees are not thrilled with the idea of the company going global either. The employees will face being laid off if they stay with the company. If they decide to relocate with Global Communications, the employees will take a pay-cut. There has been a loss of trust between the employees and Global Communications. Global Communications' plan leaked out to the board members and they were upset that no one came to them with the company's plan.

Frame the "Right" Problem

Global Communications strives to become the leader in global communications by outsourcing its services. With the introduction of new services and new formed alliances, Global Communications is now able to compete with other telecommunications companies. "Outsourcing companies are springing up to help enterprises manage their wireless telecommunications needs". (Smith, 2006)

Describe the "End-State" Vision

Global Communications' partnership with wireless providers will increase their wireless technology sales. The senior team has identified cost-cutting measures, such as a 40% unit cost for handling calls, to improve profitability. Global Communications will inform key stakeholders of future implementations or goals. Global Communications needs to get on common grounds with the union.

Identify the Alternatives and Benchmarking Validation

Problems and potential crisis situations should be identified and analyzed for possible solutions. Companies that are aware of looming issues or problems will handle issues more effectively when they have prepared (Toby & Darling, 1998). In Global Communication's case it is unclear if anyone looked to the possibility of increased competition, or the effects of the saturated market. A plan is now underway to manage the financial crisis. However, the sagging sales started 3 years prior to the crisis management plan. Could a proactive plan to offer new services have been put in place prior to sagging sales that could have prevented job loss?

Evaluate the Alternatives

Narrowed List of Alternatives

Identify and Asses Risks

Make the Decision

Develop and Implement the Solution

Evaluate the Results

Conclusion

References

Farrell, Mike (2006). S&P Report: Telecos could win round two: Vol. 27 Issue27, p42-42,

3/4p. Retrieved