Problem Solution: Global Communications

Problem Solution: Global Communications

Global Communications is facing challenges with competing in the telecommunications industry. The nine step problem solving model, PBL, will be used to propose a viable solution. (PBL Aid, 2006). For this scenario the situation will be explained, setting the stage for development of an appropriate problem statement. The problem will be reviewed and clear end-state goals established. Alternatives will be identified and analyzed, after which an optimal solution will be recommended. After the decision is implemented, a gap analysis of the results will be conducted, exposing the solution effectiveness.

Making a good decision requires correct definition of the problem or opportunity (White Paper: Defining the Problem, 2006). Understanding the situation's background is a key first step.

Situation Background (Step 1)

Global Communications has historically been a leader in the telecommunications market. However, over the past three years the company has experienced a noticeable business decline resulting in stock value depreciating more than 50%. (Scenario: Global Communications, 2006) In effort to regain market share and worth for stakeholders, Global Communications needs to develop a plan for improving profitability and growing the business. The company intends to enter and compete in local markets as well as develop global presence. An effective plan begins with identifying the issues facing Global Communications.

Issue Identification

Table 1 demonstrates the major issues challenging Global Communications. In addition to the increasing competition and fall of stock worth, the company faces the ethical dilemma of imminent layoffs and affects on Union relations. Furthermore, stakeholders are not aligned with Global Communications' plans to consider outsourcing and consumer business to help improve profits and market share. These areas of concern need taken into consideration for development of an effective problem statement. (See Table 1 which identifies key issues facing Global Communications).

Faced with these tough challenges, Global Communications can translate some of these into opportunities as well as identify additional possibilities that may enable the company to improve their business situation.

Opportunity Identification

Table 2 demonstrates opportunities that Global Communications should consider pursuing in effort to grow the business. Although the company is faced with several problems, existing opportunities may help Global Communications regain market share and maintain status as the telecommunication leader. One of the best opportunities is with top-performing loyal employees. Global Communications can engage and leverage their employees to aid improving the business. Another important opportunity is the need to engage stakeholders. In other words, keep stakeholders (employees, Union, management) informed and engaged in discussions about potential change. This may help boost support and avoid potential stakeholder disappointment with changes. Globalization, partnerships with satellite providers, and overseas call centers are strategic opportunities that can help Global Communications grow and strengthen their business. (See Table 2 which recognizes key opportunities for Global Communications).

With issues and opportunities, come potential dilemmas and affects on stakeholders. These also need considered for effectively addressing the situation.

Stakeholder Perspectives/Ethical Dilemmas

In order for Global Communications to compete in telecommunications markets, the company realized the need to grow business through globalization while also reducing costs by outsourcing. Unfortunately, the company did not engage key stakeholders and, as a result, Global Communications' business strategy leaked to the rumor mill. This poses a dilemma that must be addressed. Table 3 identifies stakeholder perspectives and potential dilemmas that Global Communications should prepare to confront.

For shareholders, the company's profitability and stock worth are most important. Business needs to improve or company worth will continue to decline, possibly resulting in loss of shareholders.

Global Communications' employees and the Union are most interested in long term personal growth within the company. They have genuine concerns about possible affects of outsourcing causing elimination of jobs.

The CEO is concerned about business growth and profitability for Global Communications. Losing market share means missing business opportunities and potentially getting squeezed out of the industry by the competition.

The Executive Vice President of Consumer Marketing and Sales wants to maintain loyal employees and keep positive relations with Union. He has demonstrated a major concern that employee morale will be negatively impacted by the proposed business changes.

The Executive Vice President of Small Business and Marketing Sales values the increased technical expertise for small business owners from expanding call centers to India and Ireland. This will also increase profitability of Global Communications by lowering operating costs.

The Executive Vice President of Human Resources and Public Relations also wants to keep positive relations with the workforce, including Global Communications' employees and Union workers. He has grave concern that business changes imposed on the workers can have a negative affect on all employees due to loss of jobs and can result in negative press to the public.

(See Table 3 which recognizes stakeholder perception and possible ethical concerns).

Taking these perspectives and opportunities into consideration, an effective problem statement can be defined.

Problem Definition (Step 2)

Global Communications is faced with a troubling situation that can be addressed with an effective plan. Global Communications can grow business over the next three years by pursuing a global strategy and providing opportunities to their employees. With clear end-state goals, a solution should be imminent for all affected parties.

End-State Goals (Step 3)

In effort to demonstrate the effectiveness of Global Communications' strategy, the following end-state goals have been identified.

Global Communications will grow market share 25% over the next three years. The company will globalize the business, expanding their presence across multiple countries within the next year. Global Communications will maintain