Problem Solution: Global Communications

Problem Solution: Global Communications

Over the past three years Global Communications has watched their stock price fall by over half, the industry business model change, and competition sore. As result of these issues Global Communications is required to make strategic decisions to keep the company afloat. In order to turn the company around, Global Communications must make some key discussions that will affect all the stakeholders. To evaluate the scenario the 9 step problem-solving model will be used.

The 9 step problem-solving model looks at the scenario from the beginning to the end. The 9 step model starts out by first describing the situation and understanding the situation. The next step is creating a problem statement; this is done by identifying all the issues opportunities as well as the stakeholder’s position. Once the problem is identified, end goals are determined with the stakeholders in mind, this provides the means to being looking into solutions, or identifying alternatives, the next step in the model. After the alternatives have been identified and benchmarked, they are compared to the end goals to see which one best fits. After the alternatives are compared to the goals and alternatives that do not fit the end goals are removed, the alternatives are evaluated for risk to ensure, the result will not put Global Communications in a vicarious position. From this final list, an alternative, or several alternatives are chosen. The final steps are to determine how the alternatives are to be implemented and evaluated against to ensure that once implemented, the results will satisfy the original end state goals. Now that the 9 step problem-solving model has been described, the first step is to look into the Situation Background.

Situation Background (Step 1)

Over the years, Global Communications has watched the industry evolved. In the past, communications companies stayed within their individual markets, either local, long distance or international. Now these same companies are competing in all markets. Further more the market has also seen completion from cable companies offering the same services. As a result of the increase in competition and lingering tech bust, the company is facing increasing financial pressures in a narrowing market.

To increase profitability and to maintain or gain profit share Global Communications is faced with significant challenges to its business model. To adapt to the new marketplace, Global Communications is in the process of implementing the following strategy: Create new services for small business and consumers by creating an alliance with a satellite provider to offer video service and satellite broad band as well as partnership with a wireless provider to allow small business owner anytime internet access. In addition to the new strategy Global Communications is also look at providing a cost cutting method by out source their call centers to Ireland and India.

To better understand the effects of the evolving industry and Global Communications new business model, the main scenario points will be divided into issues and opportunities. Issues are things that have a potential adverse effect On Global Communications. Opportunities will add value to Global Communications position. In addition to the issues and opportunities, the stakeholder perspectives and ethical dilemmas associated with them also be addressed for each stakeholder involved.

Issue Identification

There are a total of 5 issues Global Communications is faced with as result of the new industry and business model. The 5 issues are provided in Table 1. The 5 primary issues Global Communications is faces with are: devaluation of stock price, increase in competition from inside the industry, increased competition from outside the industry, mediocre results in international market, and inefficient call center productivity

The first issue is s Global Communications must overcome is deviation of the stock price. This is an issue because it indicates that the company is loosing ground in the marketplace. By having a lower stock price, Global Communication will lack funds for necessary growth. This also places the company at the mercy of potential 3 rd party lenders, if they are unable to raise the necessary funds for growth. To offset this issue, Global Communications must develop a new business case that provides value to the company and prove to Wall Street that they are turning the company around.

The main reason for the devaluation of stock price is due to increased competition. Global Communications is seeing competition from 2 new sources, typical communication companies and cable TV providers. The second issue or first area of competition is from typical communications companies now providing domestic, long distance and international service. In the past each company, would be limited to individual services. Now Global Communications is going head to head with each of these companies on every level, thus the competition tripled overnight

The third issue or second area of competition Global Communication is facing is from the cable companies. The cable companies are now providing standard phone service (domestic, long distance and international) as well as cable TV and cable Internet. To compete against the cable providers Global Communications has entered into an Alliance with a Satellite provider. This allows them to provide satellite TV and satellite broadband.

The fourth issue that Global Communications faces is that their past attempt at entering the international marketplace resulted in mediocre results. As a result of this, Global Communications may suffer the same pitfalls that occurred before by re-entering the international marketplace.

The fifth issue is the efficiency of there domestic call centers. Global Communications has identified that if they were to outsource the call centers, they would see a significant savings; however, this would result in loss of jobs and potential backlash from customers.

Opportunity Identification

In addition to the issues given, Global Communications also has several opportunities presented to it. 5 opportunities for Global Communications are given in Table 2. These Opportunities include: reduce operational costs, expand domestic service for both business and consumer customers, expand into international markets, increase stock value and provide new technologies to small business owners

Global Communications has the opportunity to significantly reduce per call cost. One method to reduce per call cost was by outsourcing call centers to Ireland and India. This projected a savings of up to 40%. The second opportunity is