Problem Solution : Global Communication

Issue and Opportunity Identification

GC is at a crossroad currently, they have two possible outcomes wither they will survive and be competitive in the telecommunication industry or they are going to sink and not be around in the years to come. The intense competition is causing major issues economically for GC revenue and profitability. The company is really in a bad state of emergency in just the past three years the stock value has depreciated at over 50%. If this continues at this rate the company will be bankrupt in another three years. The senior management team developed a plan to increase revenue and earn profit in the industry. Globalization is needed for most business to remain profitable. Globalization has become the mantra of corporation survival. Co-workers aren't down the hall:, they're at the other end of an internet connection located somewhere else on the planet. (McShane, 2005) However, the company still has to remain ethical in their planning process and ensure to not burn any bridges with partners are liaisons such as Maria Antez V.P. of the union. In order for GC to grow globally they still need to keep their local customers and employees satisfied. People are likely to with hold information and react emotionally or defensively when interacting with some they dislike or do not trust. (Kinicki & Kreither, 2004, chap.15, p.29).

GC has set a strong precedence to the community and with their employees by their philosophy "Our edge is our People". If GC outsource jobs and leave their employees locally or domestically with out jobs they will lose more than morale at the company. They are risking losing their identity which will result in employees and customers not trusting them.

Effective communication is critical for both managerial and organizational success. (Kinicki & Kreither, 2004, chap.15,p. 25) GC has a great opportunity to turn this situation positive. By communicating with the union and maintaining good rapport with all major players involved. One recent survey report estimated that a company's market value increase by over 7% when it improves its "communications integrity." (McShane & Glinow, 2005, chap11, p.10). Meeting with the union before finalizing corporate plan will ensure all stakeholders are satisfied within reason. Communication is also a key ingredient in employee satisfaction and loyalty. (McShane & Gilnow, 2005 chap11, p.7) Senior management just need to communicate with the union and be honest and in return the union can be open and honest with the workers. Once this is done even if some layoffs need to be done at least the employees can trust the employer.

Stakeholder Perspectives/Ethical Dilemmas

There are three groups of stakeholders being affected by the opportunities and issues that are facing GC. The most critical group being effected is the employees. The employees future is at stake because there is a strong possibility they may lose their jobs and retirement which will result in families being affected. This can cause work related stress and a very tough change for employees. Although most employees will lose their jobs there will be a small group who will keep their jobs if they relocate and take a 10% pay cut. Most employees directly effected by this transformation and others who aren't will lose trust in the company. Communication is the glue that holds people together. (McShane & Gilnow 2005, Chap.11,p. 5)

The Union is also being affected by the decisions of the senior management team because they weren't included in any of the discussions of outsourcing. The Union V.P. Maria was blind sided by Katrina and the entire senior management team. This causes the employees to lose loyalty in the union and lose hope in their employer. The employees may feel that the union and management is in on this scheme together. The union is placed in a bad situation especially considering they just made adjustments to a recent contract to fit into the company needs.

Lastly, the senior management team loyalty and reputation is at stake. Currently, they have to make a decision or risk bankruptcy in the near future. There new plan discredits the company philosophy "Our Edge Is Our People". The senior management team jobs could be at risk if the company experience law suits because of the contract conditions. Katrina Heinz C.E.O was recently hired and her focus is to increase revenue and profitability including globalization. Katrina has to perform or lose her position and ruin her reputation for results.

Problem Statement

Global Communications will be a multinational company by developing and implementing new ideals.

End-State Vision

By providing effective organizational communication throughout the company , a number of employees will trust in the company which will result and employees actively being accountable for their actions. The morale at Global Communications will be at a all time high which will lead to outstanding customer service. This will increase profit and revenue and secure local call center jobs.

Alternative Solutions

Many companies in many industries are facing similar issues such as Global Communications. One of the biggest turnarounds for companies in similar situations is developing and implementing new ideals. In my team group project our research found this true with many of the companies. Blockbuster Video Inc. In the third quarter of 2007 revenue dropped 5.7%; that is a mere 35 million dollars. (Blockbuster 2007, p. 30). New CEO James Keyes, was nudged out of retirement for his work in the turn around of 7-11 inc "His affinity for cutting edge technology turned Slurpee into a household name, and it also led to fewer inventory problems enabling customers to get what they wanted when they wanted." (Barack, 2007, p. 62)

McLeod USA leadership took some steps to improve its situation. It mostly cut in capital spending to maximize its cash position. Gray said, "We look at three categories: those things we must do, those things we need to do and