Problem Solution : Global Communications

Problem Solution: Global Communications

Global Communications is a telecommunications company that has long been an industry leader. In the last three years, Global Communications has experienced a lack of ability to compete with other communications companies and has seen a dramatic decline in the value of its stock. This has caused alarm among the shareholders who have serious doubts whether the industry as a whole can rebound from this current circumstance. Global Communications has responded by introducing an aggressive two-pronged approached to address the reasons why Global Communications has become non-competitive.

First, senior management has created the opportunity to partner with some of the leading industries to provide a wider range of products and services for their customers. Secondly, Global Communications has also developed a plan to streamline its customer service centers in the US and to outsource technically skilled jobs in order to provide excellent customer service to do so. Finally, there will be secondary issues for Global Communications to deal with, mainly how it will handle the relocation and layoffs of the domestic workforce. This has created tension with the trade union that represents Global Communications' domestic customer service representatives and they have vowed to take all action necessary to fight Global Communications, specifically the decision to outsource labor.

Describe the Situation

Issue and Opportunity Identification

There are a number of issues and opportunities that Global Communications is facing. They involve all stakeholders from shareholders to customers. The issues involve employees' futures with the company and the future of the company itself. The main issue that Global is facing is the lack of competition and the dramatic reduction of its stock value. This scenario has set in motion a very aggressive plan for the restructuring and the reorganization of the company. The plan involves changing the traditional format of Global Communications' product offerings and the opportunities to partner with some of the leading communications companies, such as satellite and wireless providers in the industry. This will also create the need for Global Communications to outsource some of its technological customer service jobs in order to provide expertise to its customers and reduce the cost of doing so.

Frame the "Right" Problem

Global Communications will become a competitive, more profitable, and more efficient communications company delivering state-of-the-art technology on a global scale by partnering with the best in the satellite and wireless industries and outsourcing opportunities for the best and brightest on the technological fields. Global Communications has the opportunity to forever change the face of traditional telecommunications and lead the industry in global markets.

Describe the "End-State" Vision

The end state vision for Global Communications is to provide superior communication solutions with a diverse offering that is priced competitively and affordable for its customers; increase its market share of consumers and small businesses both domestically and globally, increase profits and decrease costs; provide more proficient and efficient customer service; develop more jobs both in the US and abroad; and increase the value of its stock for shareholders.

Identify the Alternatives and Benchmarking Validation

American companies such as Wal-Mart have had varying degrees of success as they have pushed for the globalization of their companies. "It is hypothesized here that the American globalised brands were exports of successful brands that had taken many years to find their optimal functioning (business model) and positioning in the USA. The idea that this equation of success would simply apply elsewhere seemed to be taken for granted, for the USA itself constituted a non-homogeneous market (Kapferer, 2005). Wal-Mart spent 30 years making itself successful in the USA and it opened its first foreign-operated store in Mexico, a country that is geographically close to the USA. This experience was successful and so Wal-Mart tried it in other Latin American countries. Its worldwide competitor Carrefour opened its first foreign hypermarket in 1969, only six years after it created its first store. Unsurprisingly, and without doubt, Wal-Mart applied the rules that made its success in the USA; unsurprisingly in some countries, more remote from the USA than Mexico, such as Brazil, the golden rule of everyday low price does not seem to work. The average Brazilian consumer is instead eager to capitalize on special bargains. Carrefour spread more rapidly on an international basis: as a result, being unsure about its optimal formula, it was more open to the specificities of the new countries it penetrated (Kapferer, 2005).

Global Communications will have to be sensitive and flexible in its plans for expanding into foreign markets. Global Communications will have to develop a solid plan to develop local outlets in these countries to foster trust and commitment; while paying particular attention to each country' values and cultural norms. "The community in which companies operate can expect them to behave like good citizens and exercise care in the impact their activities have on the environment and community, (Szyszka, 2000). Global Communications will have to acknowledge their social responsibility with these countries and act in good faith to develop long-term relationships with local populations while demonstrating commitment to their economic growth.

"PepsiCo attracts customers by delivering great food service and value, by making product news, and expanding distribution. Products and services are tailored to local tastes to satisfy better the needs of customers all over the world" (Szyszka, 2000). Global will have to conduct research to evaluate the communication needs and desires of the local populations they plan to expand into and tailor the products and services offered to meet the demand.

Evaluate the Alternatives

Global Communications (GC) will have to expand on its existing products and services and develop new ones in order to be competitive and profitable. In order to do this efficiently and effectively, Global Communications will have to partner with existing wireless and satellite providers. This will be the single most important decision that Global Communications will have to implement because of its direct impact on the bottom line. Global Communications needs to make money in order to satisfy the