Global Communications

Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications

University of Phoenix

MBA 500

Problem Solution: Global Communications

Global communications has been under pressure. Its stock value has declined by more than 50%

in the last two years. Shareholders are not happy. Competition has taken a bite out of its market

share by offering local, long distance and international plans into one product. This led

management to take some drastic measures to improve the situation. They decided to bring their

profitability up and become one of the top competitors in the industry. They are prepared to cut

jobs, benefits and other items in the company in order to bring revenue up as well as take the

time to research, implement and bring in new technology for consumers. In order to do this

they need to implement short term and long term plans and goals for the company, their

employees and their stake holders.

Global Communications want to put their clients first and give them the best technology

to stay Connected, In addition, they also want to be committed to their employees and the

community.

Having local, long distance and international communications wrapped into one company

will allow Global Communications to expand to broader communication technology.

Situation Analysis

Issue and Opportunity Identification

Global Communications stock has depreciated in the last three years. Stockholders are not happy and worried about the industry as a whole and on Wall Street the stock dropped over 50% and stockholders were worried about the industry's ability to bounce back from the drop (Global Communications, p.1). Confidence in the telecommunications industry is waning. Competition is fierce as local, long distance, and international markets are competing for the same business. All these factors have led senior management to implement new measures to help the continuation of the business and plan to realize growth through the introduction of new services to its small business and consumer customers.

Global Communications Board of Directors has approved a plan to enter and compete in local markets and step up globalization. The plan will allow the company to move some of their technical centers to India and Ireland and reduce cost by nearly 40%. All these changes will have a negative impact on the employees who some of them will have to relocate and take a pay cut and a big portion of them will lose their jobs

Stakeholder Perspectives/Ethical Dilemmas

There are so many challenges that Global Communications is faced with:

First, Katrina Heinz, Chief Executive Officer, was recruited from a European global long-distance company provider six months earlier and her primary objective is to increase both revenue and profits through globalization. Plus, Nancy Everhardt, Executive Vice President of Small Business and Marketing Sales is also new to GC. Both of them do not communicate well with Sy Rodriguez, Executive Vice President of small Business and marketing Sales or Joel Thompson, Executive Vice President of Homan Resources and Public Relations who both have been with the company for at least 20 years and know the company in and out and have built a great relationship with the employees based on trust and values that emphasizes the employees as the biggest asset to the company. Both of them are worried that the move will impact morale across the entire company and wanted senior management to show the employees a win in it for them. One of the most important benefits of communicating goals and benchmarks is that different function can see how changes affect other areas. "A cost reduction here could quickly escalate a cost somewhere else if you don't map performance across the different areas and measure simultaneously almost daily to look at tradeoffs and what effect they will have"(Whatever You Do, start Measuring, 2007, p.22).

Second, Global Communications did not discuss their plans with the union and now is facing a challenge from the Union who is calling their move unethical and a ploy to manipulate around the current contract conditions. The Union is already upset with GC for giving up major benefits in the recent bargaining that did not go over well. The Union have asked GC to reconsider their strategy of outsourcing because it will set a precedent for the whole industry, and now threatened them taking action both through the government and all other available resources. "We need to develop an attitude and behavior patterns to say, 'You know what? We are in this thing together."' (Knight Ridder Tribune News Service, 2007, p.1).

Third, the employees of GC have grown with the company and been productive and loyal because of the company's values and highly publicized "Our Edge Is People" philosophy. And now are faced with job cuts, relocations and reduction in their salaries. And according to Sy Rodriguez," they are not going to take this announcement lying down and it will cause a major morale issue and impact productivity. It is also going to be hard enough to retain them".

Problem Statement

Global Communication will take some measures to reduce costs and become profitable by outsourcing parts of its call centers to India and Ireland.

Opportunities that will allow