Global Communications

Situation Analysis and Problem Statement: Global Communications

Global Communications has experienced a decrease in profits and stock prices causing shareholders to lose confidence. GC has become less competitive in the telecommunications industry due to the upgrade in products and service provided by other companies. The GC Management team recently developed new plans to cut US jobs and outsource to Ireland and India, without including the employees and the Union Representative causing bad blood. Global Communication has to decide the best possible solution to maximize profit and reduce cost while remaining fair and loyal to employees.

Describe the Situation

Issue and Opportunity Identification

Global Communications is no longer able to remain competitive in the telecommunications market. Other companies are providing new services, while cable companies provide three in one package deals for television, computer and telephone service. To remain competitive GC will also have to provide these new products, services and package deals, as well as developing a marketing strategy. In order to afford these new changes Global Communications plans to reduce cost by cutting jobs in the US and outsourcing to Ireland and India. The GC Management Team deliberately excluded the Union and employees from the decision making process. News of the outsourcing plans were leaked through the media prior to GC informing the Union.

Stakeholder Perspectives/Ethical Dilemmas

The Stake holders in Global Communications are shareholders, the management team, the union, and employees. The shareholders of GC are looking to maximize the returns on investments by any mean necessary. They are interested in the overall success of the company, because the company’s success determines their profit. The Global Communications Management Team wants to increase sales and profits while reducing labor cost. Their interest is in being able to compete in the international telecommunications industry, while remaining loyal to employees and customers. The Union and its employees want to protect employee rights, benefits and wages, as well as have job security.

Global Communications new plan to outsource to Ireland and India may present new problems for the company. In order to outsource the call center jobs to Ireland and India GC will cut US jobs. This unsuspected news follows a recent 20% cut of education and health benefits by the Union. Because the Union was not included in the decision making process and received information through leaked media reports, Global Communications looks as if it was trying to hide something. The negative information in the media will show customers that GC is not as committed to its employees as they claim, resulting in the customers not trusting the company.

Frame the “Right” Problem

Global Communications will become a leader in the international telecommunications industry. They will benchmark other companies in the communications market to determine the best option for reducing labor cost. Union officials will also be included in decisions and looked to for advice regarding employees. By offering new products and services at a competitive rate GC will have an opportunity to increase sales and profits, resulting in satisfied shareholders.

Describe the “End-State” Vision and Goals

Global Communication wants to become the leading competitor in the international telecommunications industry. To accomplish this GC will provide new products, services, package deals, and improved customer service. Customers will become confident with the new products and service offered, resulting in increased sales. The increase in sales will cause stocks to increase, which will please the company shareholders. Global Communication will focus on employee loyalty and satisfaction. GC will provide sales and customer service improvement seminars to future develop employee skills. Monthly town hall meetings and newsletters will also be implemented to keep employees up to date about decisions being made in the company. A Union representative will be included in all decisions regarding employees, they will also be notified prior to any plans to outsource.

References

Brooks, N. (2006). Understand IT Outsourcing and its Potential Effects on IT Workers and Their Environment. Journal of Computer Information Systems, 46(4) p46-53. Retrieved August 27, 2007 from EBSCOHost database.

Kreitner, R. ,& Kinicki, A. (2004). Organizational behavior: Organizational Communication in the Internet Age. New York: McGraw-Hill.

Sorescu, A. (2007). New Product Preannouncements and Shareholders Value: Don’t Make Promises You Can’t Keen. Journal of Marketing Research, 44(3), p.468-489. Retrieved August 26,2007, from EBSCOHost database.

Table 1

Issues and Opportunities Identification

Issues

Opportunities

Reference to Specific

Course Concept

Global Communications is struggling to remain competitive in its market, due to new products and services other telecommunication companies are providing.

Expanding services will allow Global Communications to remain competitive in market.

“Innovation is widely recognized as the cornerstone of firm growth and a primary source of competitive advantage.”

(Sorescu, A. 2007)

Global Communications can not afford to provide new products and services. The company has decided to cut US jobs for cheap foreign labor. Cutting jobs in the US will leave GC vulnerable to competitor targeting top performing employees. By making plans to outsource call center jobs to Ireland and India, Global Communications will reduce labor cost which allows more money to be used developing and marketing new products and service. “Organizations decide to outsource for many reasons. The majority of reasons surround increased financial benefits by exploring cost cutting, time saving alternatives to in-house development or service delivery.” “As individuals perceive risk