Global Communications

Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS CORPORATION

Problem Solution: Global Communications Corporation

Janet Hromatko

University of Phoenix

Problem Solution: Global Communication Corporation

Global Communications is a company faced with increased competition, increasing information technology (IT) costs, decreasing profits and needing to reduce costs. Global Communications in response to the problem of comparatively high costs needs to identify ways to make the business profitable with it facing stiff competition and changing technology. The leadership team of Global Communications has taken the problem to the stakeholders to receive endorsement to implement changes to increase the companyÐ'ÐŽÐ'¦s profits by decreasing IT cost and increasing sales through selling in a new direction of computer solutions. The primary problem for Global Communication needs to grow through technology and identify cost-costing measures to improve profitability.

Situation Background

Increased competition has lead to declining profitability and stock value. The stock has declined from $28 per share to $11 per share in the last three years. The senior leadership of the company recognized they needed to improve the companyÐ'ÐŽÐ'¦s market position. They needed to redirect their effort and concentrate on where the company was making money such as implementing IT solutions versus selling IT products. The major costs of the business were IT and they knew they had to cut these cost dramatically to be more profitable.

Global Communication needs to grow through new services to become more competitive with technology and profitable in the telecommunication industry on a global scale. The companyÐ'ÐŽÐ'¦s primary problem needs to stimulate profits: which includes decreasing IT costs with the plan to outsource technical staff. The future is to increase sales in the new direction of servicing of telecommunication/IT products. The future will focus on servicing IT communications aggressively primarily to small business and consumer customers versus the traditional producing of IT telecommunication equipment/service.

It is evident that changes made by the improvements in communication and technology are opening up the world of commerce. Thomas L. Friedman elaborates in his book Ð'ÐŽÐ'§The World Is Flat: A Brief History of Twenty-First Century,Ð'ÐŽÐ'Ё that the rise of the Internet has enabled companies worldwide to compete anywhere. However, some people still have doubts about going global. Five of the reasons for not going global include: the monetary aspect of going global, the risks and complications in expanding, the expensiveness of moving goods across borders, the idea of starting locally and then growing globally, and the smallness of size of some businesses.

These most common myths do not apply in this situation as we know the telecommunication industry is growing, expansion does not mean they have to be literally located in another area, the company needs to take the risk to stand out among the competition and the leadership does seem to want to work with the union but it has very limited choices based on their strategy to survive.

Opportunity Identification

The opportunities identified were: to grow through new services and new markets, primarily in the small business and customer customers, who are being served by local telephone and cable companies for their telecommunications products and services. Outsourcing staff to decrease labor costs and increase quality by outsourcing technical call center jobs to Ireland and India. The easiest way to become involved in a new area or out-branch is to form alliances or partnerships with those already in the market or providing the services. Business partnerships can help with advancing technologies to achieve prominence in the global market. Global Communication did this by developing agreements with the satellite provider to offer video services and partnership with a wireless provider to anytime internet access.

The team leaders identified in the Global Communication scenario would need to be knowledgeable regarding telecommunication to implement the new strategic focus and opportunities the company wants to take advantages of. Global Communication recruited innovative, relationship building and knowledgeable managers about European global long-distance and globalization of the company. Several managers in the company have the ability or business marketing expertise in selling to small to medium sized companies with technical and system skills as well as business skills. The article on IT ManagersÐ'ÐŽÐ'¦ Requisite Skills indicates in the study that IT managers should possess both behavioral and technical skills. IT managers must be people-oriented. Both interpersonal (82.5%) and Communication Skills (76.8%) were required by more than three-quarters of job ads, whereas applicants described as independent/self-motivated (22.7%) were sought in fewer than one-quarters of ads. The cross-training of staff could help retain committed employees versus larger layoffs.

End-State Goals

The end-state goals are for Global Communications to successfully lower IT/labor costs and increase profits by accessing technology and strategic opportunities. The first goal of decreasing costs by outsourcing of staff completing the tasks as required should be less costly after some employees are trained/fully functioning in India and Ireland. The cross-training of staff should be helpful to better use the current workforce. This goal of outsourcing of technical staff should be significant at the three year mark when the transition is completed.

The second goal to diversify with increased technology would result in further global expansion. Global Communications will be able to offer new products and services through partnering with other companies. Teaming with a wireless company and satellite TV and Internet provider allows GC to introduce new services. The company should see positive results within the first year to directly sell to their market niche. These two goals would address the need for growth of new services and new sales along with identifying cost-cutting measures related to staffing with increased profits at the first year mark. The profitability of the company should be measured with increases at the one, three and five year marks.

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