Problem Solution: Global Communications

Problem Solution: Global Communications

University of Phoenix

Problem Solution: Global Communications

Issue and Opportunity Identification

There are several issues facing Global Communications in this scenario. The first issue is Global Communication's plummeting stock price. Generally when this happens, stockholders and members of their Board of Directors will demand that immediate, corrective actions be taken. The second issue faced by Global Communications is increased competition. This is a difficult issue to resolve and is also a main reason why GC's stock has been slumping. A third issue that Global Communications faces is the fallout from the layoffs that it has planned. Global Communications plans to cut costs and become more competitive by moving some of their call centers to India and Ireland. This move may save the company money but what will be the resulting cost in human capital? Internal communications within the company is a fourth issue. The leaders of Global Communications seem to make decisions without discussing the ramifications of those decisions with each other. This is a public relations nightmare and a bad way to run a company. A fifth issue for Global Communications is their relationship with their union. Typically, relations between companies and unions are adversarial at best. In this case, Global Communications had just asked the union to some accept cut-backs then hung them out to dry by announcing the layoffs and their intent to send jobs overseas. Global Communications must overcome these five issues if they are to remain competitive in the telecommunications industry.

Stakeholder Perspectives/Ethical Dilemmas

Each stakeholder of this scenario has a unique perspective of this situation. Unfortunately, this presents some challenges in seeking a resolution that is beneficial to all parties. It is not necessary or even preferred for all stakeholders to share the exact same perspective on a given issue. However, it is important for stakeholders to recognize and understand all perspectives in a given situation rather than just their own. This is not the case with Global Communications.

Katrina Heinz is the CEO of Global Communications and is understandably concerned with increasing revenue and profits. However her short tenure with GC and her European business background may be factors in her inability to fully understand the ramifications of her decision to move union jobs abroad. She seems to be looking for a quick fix to Global Communications' problems rather than one that will put the company in the best situation for long term success.

Sy Rodriguez has been with the company for more than 20 years. He understands and values the loyalty that Global Communications' employees have given to the company. He is an influential member of the senior leadership team and only agrees to the cost-cutting measures after he feels that the company will do its best to take care of displaced employees.

Nancy Everhardt is new to Global Communications and is understandably in favor of the new plan. She will oversee the 1000 new employees located in India and Ireland.

Like Sy Rodriguez, Joel Thompson has also been with the company for over 20 years. He is sensitive to employee issues and is the company's liaison with the union.

Maria Antez represents the union in this scenario. She was already on the hot seat with union leadership after the most recent negotiations. The senior leadership team's new plan has caught her completely off guard.

Each stakeholder has their own perspective on this situation. Each feels that their perspective is valid. However, they must put aside their differences and act according to what's best for the long-term success of the company.

Problem Statement

Global Communications can expand their market share and profitability by utilizing their existing provider agreements and by assuring their union employees that they are committed to their long-term success.

End State Vision

The desired end state vision of Global Communications is to be the market share leader in the telecommunications industry. Their hope is that would lead to an increased stock price which would appease their board of directors and other stockholders. In the past, they have been very loyal to their employees. It seems as though the senior leadership team is willing to abandon this value in the hope that they'll gain profitability and market share. However, I believe that there may be some other SMART (Strategic, Measurable, Attainable, Realistic, Timely) goals that might allow Global Communications to reach their desired end state without taking such drastic measures.

One such option would be to look into cost-cutting measures other than layoffs and sending work overseas. It may be worthwhile to calculate exactly how much they need to cut their costs in order to achieve their end state vision. Once they have a target dollar amount that needs to be cut, they can then take steps to realize those savings. As it stands now, their union looks to be on the verge of a strike if Global Communications continues with its plans to move work overseas. The union may be more receptive to renegotiating if they know exactly what cost-cutting measures must be made and if they have assurances that Global Communications has a long-term commitment to their employees.

Another SMART goal of Global Communications would be to focus on the growth aspect of their plan. They already have agreements in place with a satellite provider and a wireless provider which should allow them to expand their small business and consumer markets. These agreements alone sound like they would give Global Communications a leg up on the competition which, in turn, would increase the company's profitability and market share.

A third SMART goal of Global Communications would be to have a strategy session for the members of the senior leadership team. The purpose of this session would be to define and prioritize the goals of the group as they relate to the success of the company. Currently, the goals of the individual leaders do not seem to be in synch with one another. They each have their own reasons for wanting to do things, but they do not all seem to be working towards the same goal. This session would also help to improve the communication between the team members, which is currently very weak.