Global Communications Corporation

Problem Solution: Global Communications Corporation

Global Communications has faced problems in the past, and they are facing more problems now. Still, Global Communications has been a profitable company and it can be profitable again. Through researching other companies and using the principals of generic benchmarking illustrating changes that have been successful for other companies, it will be shown the steps that Global can and will take to bring them into a new era of success.

Situation Background (Step 1)

Until recently Global Communications had always been a successful leader in the telecom industry. Because of Global Communications position as a telecom giant in the telecom market they have always been one of the highest paying telecom companies in the industry. Global has prided itself on the ability to provide only the best, for only the best employees. With outstanding pay and unheard of retention rates even the telecom union has rarely ever taken issue with the Global Corporation.

3 years ago the market started to thin for Global Communications. As the Internet industry started to boom, the Telecommunications Act of 1996 went into effect. The 1996 Act opened the playing field of telecommunications to a wider range of companies by removing many of the restrictions that existed. Many of the government imposed anti-competition regulations were removed and allowed for any company to enter the telecom market. (FCC, 2004)

The 1996 Act was supposed to open the market and help push competition of the services of cable, broadcast, broadband, phone, VoIP (Voice over Internet Protocol), and other such telecom services. Because of how fast the internet was growing, it was assumed that the few telecom companies out there would not be able to keep up with the anticipated demand. The 1996 Act brought a new era of players into the telecom market. The telecom industry companies grew so fast to meet the demand that was expected; they outgrew and flooded their own market. The expected demand that spurred the Act never came. The demand for services did indeed increase, but not to the levels of the previous market predictions. (Litan & Noll, 2004)

3 years ago Global Communications started to feel the effects of the industry crunch and tried several different approaches to bring back the profits without making any major changes to the current staff. With the stock steadily dropping to fifty percent of its worth 3 years ago changes had to be made, but Global Communications has tried to fend off decisions that would affect the employees. Global first started bundling packages of services at a discount to try and gain a larger market share by being an all solutions provider. The packages helped, but in the end did not make enough of a difference. Global then negotiated with the telecom employee union to take a cut in benefits. The cut was upsetting too many, but the union helped to smooth things over and convinced the workers this was for the greater good to help the company and in turn the company would do everything it could just as soon as they could afford it. The union explained to the workers that the benefits plan cut would be better than the loss of jobs. The current issue at hand now is in an attempt to try and get Global back to being profitable; they can outsource some of the currently held American jobs to India and Ireland. The problem is the union now feels they have been lied to and are threatening a demonstration and/or legal action.

Issue Identification

The key issues surrounding Global Communications right now are complex and simple at the same time. The issues are obvious; the path to success will be a little more difficult as the only solutions in the realm of possibilities will require significant changes on every stakeholder that has any connection to Global Communications.

Global Communications is anything but global. They have focused primarily on local markets within the United States. Without the global vision, Global Communications will quickly find themselves as one of the smallest telecommunications firms in the market, if they exist at all. The attempt at employee satisfaction through aggressive pay is a noble gesture, but one that will keep Global Communications from being able to advance. With the changes that have been made employee satisfaction is low, and with other changes that will have to be made the satisfaction will drop even more. The drain on resources has limited Global's ability to expand services and take on new technologies. The stock price has been going down significantly for 3 years. The union is now upset with the way the company has been handling everything and is looking to take disruptive action.

Opportunity Identification

With all the dilemmas that Global seems to be facing, there are just as many opportunities to turn the company around and make a success out of this once profitable company. Global Communications has a great start with their partnerships built through other service providers. They can continue to expand success through the expansion of the telecom market. Through aggressive marketing and strategic moves in employee options, customer satisfaction, and new services, Global Communications can once again position themselves to be a telecom giant.

Understanding the different cultures is essential in conducting international marketing. Global Communications will need to consider local customs, traditions, language, literacy, education, religions, governments, hiring standards and corporation/employee relations. Other corporations expanding into the international market have found that "there are inherent problems in marketing to countries to where the language is different." (Precision Marketing, 2004) Unique religious and language challenges lie ahead as Global expands into Ireland and especially India. Global Communications will also face challenges regarding the reception of their customers to call centers located outside the United States. An organized and proactive approach to these issues will ensure a good partnership is established with future employees, the international community and Global customers.

Global Communications customers are expecting higher technology at reasonable prices. Global stock holders are complaining about sluggish returns and are concerned the market would not rebound. Outsourcing can reduce labor costs, improve technology and expand services world wide. However, what will be the impact on the quality of service and future growth of the corporation. Outsourcing will not be a popular decision among call center employees, but will allow the expansion of other divisions within the corporation.