Global Comunicaitons

Situation Analysis and Problem Statement: Global Communications

Global Communications is a telecommunications company is like any other telecommunications company today; they are under pressure by heavy competition from other communications companies. They are also under the gun with shareholders due to the fact that they share price has dropped more than 50 percent in the last three years. How is Global going to combat the lose of revenue and drop in share value?

Globals senior management staff has come up with a few steps that will bring them back in to the fold of being a world class leader in telecommunications. The first step is to broaden their product line. Global is creating strategic alliances with other telecommunications companies. They are working with satellite companies to offer voice and video service and also wireless companies to offer wireless data. The concentration will be around consumer customers and small business users. This first step will make them more competitive

and level the playing field with other companies that offer a diverse product line that Global once did not offer.

The second step will be in the area of cutting costs. The senior management staff has a plan to downsize their domestic call centers and move the IT support call center to Ireland and India. This move overseas will help reduce the unit cost per call to 40 percent.

Senior management is going in the right direction with stragic alliances with satellite and wireless companies because this will help them offer a diverse product line and bundle products together. The problem arises with their second process of moving call centers overseas. In the coming months and year, senior management is going to have to deal with possible low employee moral and also major union problems and issues. To become a world class communications company, this direction that senior management is taking will have to be worked at with kid gloves to make it work.

Issue and Opportunity Identification

Global Communications is a company that is trying to keep it inventors happy but the stock price over the last three years is not reflecting the investor's happiness. How can they turn this around and what are some of the issues and possible opportunities do they have to not only thrive in the communications market place, keep its investors happy but also keep their employees happy too.

To keep investors and shareholders happy and maximizing their investment, Global is going to create alliances with wireless and satellite companies to provide a wide range of services to keep them completive in the communications industry. Global will cater to the end user consumer and also the small business user. They will also help revenue maximization by moving their IT call centers overseas to Ireland and India. This move will save the company over 40 percent in call center costs. This move will require some employees to relocate, take a new job within the company or be laid off.