Problem Solution: Global Communications

PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications Corporation

Hosea Rodgers III

University of Phoenix

MBA 500

Lisa Browning

January 30, 2007

Problem Solution: Global Communications

Global Communications has spent many years at the top of the telecommunications industry. These are new times and new companies have caught up with Global communications and some have passed them along the way. They are dealing with heavy competitors in the market. Sales have been lackluster and poor returns have the company wanting to restructure. The most noticeable decline is the decline of stock prices, which is more than 50% in the past three years. This problem has stockholders wondering if Global Communications can exist in the new world. Global Communications decision to outsource thousands of jobs to India and Ireland is difficult because of the loyalty employees have given throughout the years. Huge layoffs and a decrease in employee health/education benefits will create uproar in this once great company.

Global Communication has disregarded the Union in this process. The Union is agitated by Global Communications failure to recognize them as a partner. The Union would have like to know about the decision to outsource, since it greatly affects them. In the UnionЃfs eyes, Global Communications did not assess all options. The Union feels like the contract was manipulated. Since the change will affect the Union, they have opted to take legal action against Global Communications.

Global Communication is up against heavy competition in the telecom industry. There are cable companies who offer more complete packages to consumers. Companies have packages that include, telephone service, computers, and television services. International outsourcing means a trend of growth opportunities and profits that will increase the market share. Global Communications wants to take full advantage of these much needed benefits.

Situation Analysis

Issue and Opportunity Identification

The decision to outsource will make it tough for Global Communications to keep loyal employees. This also will affect the hiring and training process of potential new employees. Global communications will notice a decline in employee morale, which will turn into less production from the employees. The Union notices that with layoffs, negative results will shortly follow. That is why the union does not want to outsource jobs to overseas call centers.

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Stakeholder Perspectives/Ethical Dilemmas

Global Communications stakeholders include Customers, Stockholders, International Contractors and International employees.

1. Customers:

a. Advanced notice should be given to customers when personal information is being shipped overseas.

b. Customers should always receive superior customer service.

c. No hidden fees and make sure there are fair and reasonable costs

2. Stockholders:

a. Legal actions taken against Global Communications may result in loss of stock value.

b. Stakeholders rights should be respected and any legal affairs should be brought to stakeholders

c. Global Communications is socially responsible for the secure optimum financial returns.

3. International Contractors and Employees:

a. Standards need to be set to support contractors and employees and enforced strictly.

b. The company should not employ any unjust acts that would be harmful to the society.

c. The morals and values of the culture should be respected.

Operational standards and specific qualifications should be used when dealing with managerial assistance and technical support.

Problem Statement

Global Communications is suffering from decreased returns in stock share. Currently Global Communications is not strong enough to compete with other telecommunications sources. Global Communications is suffering financially due to increased competition.

End-State Vision

Global Communication is powering forward with new strategies of globalization that will place them in position to become a leader in the telecommunication industry. Global Communications knows what it means to be on top. The company will uphold their merit of excellence as a leader in the industry. Global Communications will once again see consumer services and business practices integrated. They will notice the flexibility to harbor the change in the future of technology and industry standards.

Alternative Solutions

After identifying possible solutions to Global Communications problem, further considerations are addressed to lead to four best case solutions. First of all, Global Communications could expand their marketing and sales locally and long-distance in U.S by outsourcing. The increased use of outsourcing is associated to its ability to reduce cost and changes in how companies do business. The need to gain competitive advantage has also provided companies with only two options of either outsourcing or to improve processes themselves. However, outsourcing can result in problems such as the difficulty of combining the goals of the company with those of the outsourcing firm. The job security of employees and unions can be affected by termination or the transfer of employees to the outsourcing firm. Aside from these, outsourcing involves more reports and upgraded communications networks. On, the other hand, it is expected that 80% of Fortune 500 companies will outsource most of their information technology by 1995. In the past few years, companies