Global Communications

Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications

Terrance L. Lane

University of Phoenix

Problem Solution: Global Communications

One of the objectives of the University Of Phoenix Master’s of Business Administration program is to analyze a business opportunity and present a solution (University of Phoenix rEsource Page). This study will present a solution for Global Communications (GC). GC is a telecommunications corporation that desires to become a true global organization. This work will present the issues and the values of each stakeholder. A problem statement will be formed based on the interest of all the stakeholders. Alternative solutions will be presented and the risk of each alternative will be evaluated. After identifying the goals of GC an optimal solution will be presented and instructions for implementing will follow. The solution presented in this paper is the result of a gap analyses and generic benchmarking.

Situation Analysis

Issue and Opportunity Identification

Global Communications (GC) is one of many telecommunications companies that are under economic pressure. This economic pressure is a result two situations. First, cable companies are offering more services than GC. Second, GC has too many competitors with the same services. Global Communications is now experiencing more than a 50% stock depreciation. In an effort to survive and become a successful global industry, GC has created a two-pronged strategic plan. First, GC plans to grow by introducing new services to its small businesses and consumer costumers. Second, the strategic plan includes cost-cutting measures to increase profitability.

GC strategic plan should include competitive benchmarking to gain an edge over its competitors. Competitive benchmarking is modeling solutions based upon what competitors are doing (Maul). Cable companies are bundling services to include computers, televisions and plain old telephone service. GC, using competitive benchmarking, has created an alliance with a satellite provider to offer a similar bundle of services. In its quest to gain a competitive edge, GC is limiting its solutions to that of its competitors.

GC cost-cutting measures include outsourcing jobs to India and Ireland. Outsourcing jobs will cause lay-offs and a 10% pay deduction with its current employees. During strategic planning time, GC failed to communicate its plan to the Technological Workers Union. However, the union found out about the plan through the “grapevine” (McShane & Glinow, 2005). “Grapevine information is sometimes so distorted that it escalates rather than reduces employee anxiety. This is most likely to occur when the original information is transmitted through several people rather than through one or two people” (McShane & Glinow, 2005, pp. 345, 346). The union is outraged that GC is not willing to negotiate with a win-win solution. Because GC did not use an integrative negotiation approach where both sides have a win-win solution (Kreitner & Kinicki, 2003), the union is in the process of taking action through the government and all other available resources.

Stakeholder Perspectives/Ethical Dilemmas

Global Communications, like most companies, has many stakeholders who have something to gain or lose with the new strategic plan. “Strategic decisions have a long-term perspective of two to five years and affect the entire organization. Top executives are responsible for making strategic decisions” (Gomez-Mejia & Balkin, 2002, p. 210). GC new strategic plan has values and interest of many of its stakeholders. The new plan has also caused some conflict between the stakeholders. Those with considerable amount of interest are the stockholders, Senior Leadership Team, Board of Directors, Technology Workers Union, the employees of Global Communications, and its small business and consumer costumers.

Global Communications new strategic plan was partly inspired by its depreciating stock. GC stock has declined 50% in the last three years. GC stockholders are concerned about the company’s ability to rebound. In response to depreciating stocks, GC Senior Leadership Team developed a strategic plan. The strategic plan addressed growth opportunities, new services for small businesses and consumer customers, cutting cost, improving profitability, and global status. The Board of Directors is pleased with the new strategic plan and supports the vision of global stability and new services for the local market.

The strategic plan is not accepted by all GC stakeholders. The plan will outsource jobs to India and Ireland and cause employee lay-offs. In addition to outsourcing and employee lay-offs, the new plan calls for a 10% pay deduction and possible employee relocation to India or Ireland. GC failed to communicate the strategic plan to the union in a timely manner. Unfortunately, the union’s board heard about the plan through the “grapevine” (McShane & Glinow, 2005). The union believes that GC is in violations of the current contract. The union is ready to take action against GC because of its inability to negotiate effectively.

The new strategic plan is accepted by a group that will profit from the new strategic plan. Small businesses and Consumer Costumers stand to gain new and improved services. This is sure to be a great marketing tool for GC.

Problem Statement

Global Communications will become a competitive telecommunications company by refining their strategic plan. The strategic plan will be developed with input from representation of all stakeholders. Having a strategic plan that is developed by all stakeholders will lead to effective communication and improved decision making (McShane & Glinow, 2005). The new plan will include generic benchmarking to find the best practices for product services, employee relations and operating in global business (Maul).