Global Communications Benchmarking Research

Global Communications Benchmarking Research

Global Communications is not the only company who had to make serious decisions that would affect not only the company, but the consumers as well. Competition is very high no matter what company it is. Since it is very high, companies need to strategize or perform cost-cutting plans in order for the company to be one of the top. All the companies that we have researched have done generic benchmarking. “Generic benchmarking is a comparison of own processes against the best processes around regardless of the industry. The objective is to identify the best practices in any type of organization that has established a reputation for excellence in the specific area being benchmarked” (Spendolini, 1992). Global Communications’ ideas for cost-cutting, expanding the company internationally, and outsourcing were similar to other company’s plans. Some of the companies we have researched implemented their new plans differently than Global Communications. Some would consider that Global Communications’ actions were done unethically.

AT&T Wireless

AT&T Wireless was created when AT&T Inc. merged with Bell South in December 2006. Bell South used Cingular Wireless as their wireless company. Cingular Wireless was one of America’s best wireless providers for a very long time. After the merger, AT&T Wireless became the largest wireless company in the United States, with more than 65 million subscribers. They have a technical support staff in Redmond, Washington which takes care of any technical questions throughout the United States. They employ over 30,000 people in the old logger town. A company as large as AT&T, in a small town as Redmond, makes the company essential to the survival of the town. There are rumors and reports that AT&T is in talks to outsource all their technical jobs overseas. Global Communication is going through the same situation were top executives are planning to outsource their jobs overseas. Most CEO’s job is to increase productivity as quickly as possible. The two companies are in a race that is very competitive and any advantage could put you at the top in industry.

The two companies are very alike because both companies made a decision to outsource their jobs. They are not informing their employees of what could happen in the future. The company maybe wants to first have some type of infrastructure in the foreign companies before closing down the old location. This makes business sense that a company wants to have as little down time as possible. The employees are hearing this by grapevine communication method, but through 100% of bad gossip. So everyone is on different pages on where his or her futures with the company are going.

Both companies need to make some type of public stance on what is in-store for the company. Lack of communication will lead to a lack of production. A statement would state where the company is going, but silence has a million words and different meetings. People will become confused and operate as independents, instead of as a team.

Oreck Corporation

The Oreck Corporation was founded by David Oreck in 1963. The company’s home office was in New Orleans, Louisiana, and its manufacturing plant in Long Beach, Mississippi. The main goal of the company is to have a light weight, durable vacuum that is very powerful. The Oreck Corporation focused on the hotel industry, and after being very successful, David Oreck found out that a lot of housekeepers wanted the light weight vacuum in their own homes. So David Oreck started selling to the public and the rest is history. The company has grown yearly sales of over billion dollars, over 500 franchise stores, and an international division.

On August 23, 2005, the costliest and one of the deadliest hurricanes swept through the region of the Mississippi gulf coast. (Wikipedia) That storm was called Hurricane Katrina. The storm destroyed 50% of the manufacturing plant and completely destroyed the call center. Most important a lot of lives were changed because of the hurricane. Oreck Corporation was one of the first companies to put people back to work. Additionally, they provided the families with mobile homes to live in until they got back on their feet. After a year, the company had to make a decision on whether to stay in the gulf region or relocate to ensure the life of the company. Global Communication faced the decision on whether to ensure job security for their current employees or relocate to help the company. Oreck Company chose to relocate to the great state of Tennessee after they said that they will rebuild with the gulf region. Also they moved the headquarters out of New Orleans after being there over 45 years. A lot of people thought that the move was very unethical to leave the region they help build. The company had employees that had been there close to 45 years of service in that region.

Global Communication talked about offering their employees the same package to relocate them to the new location. The company is being very ethical in trying to save their employees’ jobs, of course less money, but they will have a job. Global Communication and Oreck Corporation could have not made a public stand that the employees are the #1 concerned to the company. That statement just sounds good to everyone. The only problem is that it was not the truth of what the company should be concern with, which is the company’s well being.

Delta Airlines

Delta airlines shared many common issues with Global Communications. Delta is one of the top airlines in the country. However, in the early 2000’s Delta had lost billions of dollars and were in a huge debt. In order to get them above water again, Delta had to come up with a new plan to increase profits. Delta expanded their airlines internationally in the 90’s, Global Communications also wanted to expand their company globally. The competition for Delta was getting very high. Expanding internationally would broaden their consumers. Another thing in common with Global Communications was the need for cost-cutting. Delta airlines wanted to downsize their workforce to save money. Unfortunately, Delta had to file for Chapter 11 Bankruptcy to address the company’s financial troubles. Delta laid off thousands of employees. The employees that were being laid off were skilled and experienced people. Once those employees were gone, Delta, instead, hired non-experienced workers for less money. For the workers who stayed aboard they endured huge cuts in wages and benefits