Global Communication

Problem Solution: Global Communications Corporation

Problems or challenges are inevitable part of any business environment. In fact, many business organizations have to make critical decisions on a routine or daily basis. These decisions are essential to their operation and may have a huge impact on their company's financial health. To effectively handle these problems, businesses have to adopt problem-solving models to assist them in identifying the problems, the available alternatives, assist in the implementation or execution of solutions, and generally serve as a guideline in problem-solving.

The purpose of this paper is to educate the readers on the realistic application of University of Phoenix's Nine-Step Problem-Solving model. Using Global Communications (GC) as the subject of the case study, the paper will describe how a strategy was designed and implemented to assist the organization in identifying the problems, establishing alternatives, identifying strengths and weaknesses, and selecting the most appropriate course of action. The paper will show how GC has arrived at the most optimal solution or solutions that would address all the organizational problems and attain all its business goals by applying the problem-solving model. This paper encourages readers to carefully evaluate GC's background to gain better understanding of the company's position. Gaining an understanding of the company's background would provide a solid foundation needed in finding a resolution to the problems at hand.

Situation Background (Step 1)

Due to increased competition in the telecommunications industry, Global Communications has been struggling to maintain its market share. In the past three years, the company has seen a significant 50% depreciation in its stock value. In addition to increased competition in the telecommunications industry, the organization feels vulnerable from cable companies which recently started offering all-inclusive communications solutions. GC is currently ill-equipped to compete with cable companies that are offering complete packages for television, telephone, and computer communications. As a response to the situation, members of GC' management team has formulated a strategic and aggressive approach which involves expansion of GC's service offerings and implementing cost-cutting measures. The first part of the strategy involves creating an alliance with satellite providers in order for GC to expand its menu of services. GC hopes to start offering video services and satellite version of broadband internet services. In addition, GC hopes to offer remote internet access to its customers. By expanding its services, GC customers will find no need to switch companies since GC already provides an all-inclusive communications solutions. Furthermore, the expansion will entice new customers to contact GC and potentially become GC's customers. Global Communication is targeting small businesses and consumer customers with this service expansion. As a result of this expansion, GC's market share will become more stable, more diverse, and more competitive than before.

The second part of the approach involves cost-cutting measures. After grueling negotiations with the Technologies Workers Union, GC was able to trim down 10% through pay cut and 20% by cutting medical insurance and education benefits. The company further decided that cutting pay and benefits would not be sufficient; therefore, more serious action is needed such as outsourcing technical call centers and other technical positions to India and Ireland. In addition, they needed to increase technological sophistication and gain entry in the global market. By outsourcing the jobs to India and Ireland, the company will be able to achieve three of its goals: global market entry, increase technological sophistication, and reduce operating costs, specifically cost of labor. GC's board approved the measures to outsource the jobs without consulting and negotiating with the Workers Union. Besides the legal issues involved with the negotiation, GC have an added concern of poor employee morale which may affect the company's productivity, attendance, and loyalty. The employee-body is critical to GC's success. Through employees' cooperation, GC can execute its business strategies to grow and succeed. In order for GC to have smooth transition and implementation of their growth initiatives, they have to perform an in-depth analysis of their situation, identify the issues and opportunities available, and implement the most appropriate course of action.

Issue Identification

GC is presented with several issues or concerns, which the organization must address appropriately and in a timely manner. Primarily, Global Comunications' problem seems to be their struggling financial health. In the past three years, the company's market share or stock value has diminished by an astonishing 50%. This problem can be attributed to increased competition in the telecommunications industry and limited service offerings by GC making them uncompetitive. In addition, the cost of doing business, specifically labor, has been steadily increasing and affecting the company's profitability. In addition to poor financial health, GC's other problems include:

Ð'* Poor employee morale

Ð'* Affected or fractured relationship with the union.

Ð'* Lack of technical sophistication and non-diverse portfolio of services.

Ð'* Increased competition in the telecommunications industry.

In order to resolve these problems, GC has devised a few measures to correct these problems; unfortunately, these measures have resulted into second-tier problems. For instance, the poor employee morale is a result of Global Communication's reduction in force (layoff), unfavorable compensation and benefit modification, and GC's announcement of outsourcing the jobs to India and Ireland. GC's employees and the union are extremely unhappy with GC's business methods. First, the workers and the union had to agree to an excruciating 10% pay cut and 20% benefits cut. After completing the negotiation with the Union, GC made an announcement that the company will outsource the jobs to India and Ireland. This announcement came as a full surprise to the employees and members of the union since GC failed to consult and communicate the decision to outsource with any representative from the union.

With all these issues or challenges facing GC, the organization must develop a strategy to address these issues. However, the