Global Communications Problem Solution

Running Head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications

University of Phoenix

Situation Analysis and Problem Statement: Global Communications

Communication is vital to the success of any organization. Global Communications lack of effective communication of their strategic plan with Technology Workers Union representatives, shareholders, employees, and customers has raised potential problems that could undermine the initiative. Balancing the differing values of each shareholder and implementing a plan to appease each will be crucial. Gaining decision acceptance for the new plan from all stakeholders will be necessary, as will maintaining high job satisfaction from employees. Job satisfaction is not just necessary from a company-employee perspective it "is also an ethical issue that influences the organization's reputation in the community." (McShane & Van Glinow, 2004) Therefore, for Global Communications to be successful in reaching their goals the ethical issues of their strategic plan must be addressed and resolved with each stakeholder.

Describe the Situation

Issue and Opportunity Identification

Global Communications is facing extreme competition in the telecommunications industry from international companies as well as domestic cable companies offering a wider array of services. The company has developed a strategic plan to increase profits and shareholder value by becoming more competitive on the global market as well as domestically. Outsourcing jobs and offering expanded options for business and consumer customers should give the company the competitive advantage it needs to grow.

Issues facing Global Communications are the reaction of shareholders, employees, customers, and the Technology Workers Union to their strategic plan. Shareholders are concerned with the steady decline of the stock price and are concerned with the industry's ability to be profitable. Employees are concerned with losses of benefits in recent contract negotiations and job security. Customers are demanding increased technical sophistication and more flexible telecommunication options. The Union is upset with recent negotiations as well as plans to outsource jobs being held by Union members.

Stakeholder Perspectives/Ethical Dilemmas

The important stakeholders in the scenario are Global Communication's management team, their shareholders, and their employees as well as the Technology Workers Union. Global communications is facing extreme competition and must implement their strategic plan to improve profits, increase stock price and rate of return for shareholders while trying to maintain a motivated workforce. Global Communications is also facing strained relations with the Union due to outsourcing of some Union jobs, linked to the strategic plan. The company is trying to find fair and just ways to implement the strategy without upsetting the other stakeholders and without violating or compromising the integrity of the Union contract.

The Union is interested in protecting the rights of its members. They feel they have been flexible with the company by negotiating a contract that was less than favorable to the members in order to help the company be more cost efficient and competitive. The new strategic plan has caused more concern to the Union, because some Union members will be laid off and their jobs moved to foreign countries, while others will be reassigned with salary reductions. The Union feels the company is not holding itself accountable to the contract negotiated and is trying to manipulate around it.

Employees feel they are being treated unfairly as well. Some will be losing their jobs, while those that remain will have salaries reduced by 10%. In their minds Global Communications has betrayed a trust and is not examining fairer alternatives to meet their needs. Shareholders; however feel they have been let down by the declining stock price and are willing to accept any plan that will increase their rate of return on their investments. They however do not want any negative public reaction brought on by layoffs or a Union imposed strike that could have an adverse effect on the stock price.

Frame the "Right" Problem

Global Communications will become a global leader in the telecommunications industry by establishing productive internal and external relationships that foster economic and social growth.

Describe the "End-State" Vision

Global Communications aspires to become one of the top three telecommunications companies within the next three years. Implementing a solution to the problems faced with their new strategic plan, Global Communications will improve employee job satisfaction to be greater than 90% based on employee surveys. Global Communications will also add new customers at a rate of 10% per year, and retain current ones. They will be recognized by the Union as a valuable partner intent on developing and rewarding employees. This will in turn allow Global Communications to reap the benefits of this solution and recognize an increase on profits and rates of return on investments at a rate greater than five percent per year.

Identify the Alternatives and Benchmarking Validation

Global Communications faces several alternate solutions to their current problems associated with their new strategic plan. Communicating the plan and implementing a solution for the issues surrounding it will be vital in the success of the company. Companies such as Barclays plc and United Technologies experienced problems similar to Global Communications and used slightly different approaches in resolving them.

Barclays plc "signed an agreement with the U.K. finance trade union Unifi on outsourcing jobs to India." (Business for Social Responsibility, 2005) The agreement promises to give employees early warning of any decisions which would affect their employment. (Business for Social Responsibility, 2005) The agreement also states that Barclays will provide training, severance packages, and new employment assistance to any employee whose job is lost due to outsourcing. (Business for Social Responsibility, 2005) Global Communications can implement a similar solution by working with the Technology Workers Union to establish a similar agreement. This will appease Union representatives as well as