Problem Solution

Problem Solution: Global Communications

In this analysis, I will go over the issues currently facing Global Communications. I will elaborate on the ethical dilemmas faced by the stakeholders and the company as a whole. With the issues surrounding the company, I will present opportunities in the horizon as well as a perspective in Global Communications' plans to become a global resource.

Global Communications feels the pressures of the industries and trying to keep up with its competitors and watching its stock prices fall. Due to this, the stockholders are giving the company a lot of pressure to come up with a plan to regain consumer confidence and return to a profitable stage. In order to do this, Global Communications need to offer better services than what their competitors are providing to their customers. This paper will discuss the alternative solutions to their existing problems, risk assessment for the suggested alternative solutions, the optimal solution, and lastly the implementation plan to deal with the problem. Since Global Communication is experiencing profitability and marketability issues and plans to go become a global resource within three years in the telecommunication industry, I will expand on where the company stands today, and what it takes to become successful in their plans for globalization.

Situation Analysis

Issue and Opportunity Identification

There are many issues facing Global Communications. One of the main concerns is the increased competition. Due to this, the company's stock plunged from $28 per share three years ago to $11 per share today. However, the telecommunications industry is under pressure, and this causes the stockholders to wonder whether Global Communications is capable of bouncing back. Another issue is GC's layoff plans. In order to improve profitability, Global Communications plans to cut costs by moving some of their call centers to India and Ireland and to downsize its domestic call centers, therefore creating massive layoffs of employees. Although this decision will allow the company to stay in competition in the industry, it also creates more problems in the way of employee morale and productivity. Since Global Communications failed to inform Technology Workers Union its decision and strategy, the Union has been misinforming the employees. Rumor of a potential layoff was inadvertently created in the company, and due to the mismatched information, has created a low morale within the company. In addition to this, Global's inability to communicate their plans to the worker's union will cause PR issues and will make the company's efforts to expand globally problematic.

Global Communications developed a plan to grow into the international market. This allows the company to introduce new services to small businesses and local consumers which will allow them to compete with the local telephone and cable companies. Although the decision of layoffs can create issues for the company, effective cost cutting measures is necessary. Despite all of the issues that Global Communications is faced with, the company has an opportunity to do business in the international market by developing new services to help them compete with the cable and telephone companies.

Stakeholder Perspectives/Ethical Dilemmas

Global Communications is under huge economic pressure. The company's revenue has immersed due to intense competition in the industry and the stock price has dropped from $28 three years ago to its current price of $11 a share. With the financial dilemma the company is experiencing, it is necessary for Global Communications to quickly find a solution. The group has decided that in order to increase profitability, it is necessary to stay in competition by introducing new services and also to reduce costs by outsourcing call centers overseas to India and Ireland. Global Communications, however, did not involve one of its key stakeholder, the Technology Workers Union, in the decision process. Due to this, the union is threatening to take legal actions.

Additionally, with the amount of layoffs and reduction of salary, employee morale is at an all-time low. Although decision to cut costs has been finalized, Global Communication should begin negotiations with Technology Workers Union and come up with a resolution that can benefit both parties. Global Communications is known for treating their employees well, so it is necessary to come into terms with the Union. If not, because of the employees vitality in the company, this issue will cause Global Communications' reputation to be ruined.

Problem Statement

Global Communications needs to deal with the market competition and at the same time find the ways to keep up with the technological changes with in the organization through effective cost cutting measures. Global's stock price was down to $11 per share from the $28 per share last year within a short period. Global Communication also started losing consumer confidence. In order to deal wit these dilemmas, the company's executives came with the two plans. First in order to realize growth the company needs to introduce new services primarily to small businesses and local consumers. This plan is necessary to compete with what the local telephone and cable companies has to offer. On the other hand, for Global Communications to get to the profitability stage, the company needs to take cost effective steps through outsourcing some of their technical call centers to India and Ireland. In order to bring back the consumer confidence, Global Communications need to introduce new technological changes into local, long-distance and international market. To make effective cost-cutting measures, the company's decision to outsource is appropriate.

End-State Vision

Global Communications is experiencing high competition with local cable and telephone companies. In order to resolve this issue, the company plans to grow into the international market by providing better telecommunications services to small business and local consumers.

In order for Global Communications to get to the profitability state, the company must take cost effective steps and outsource call centers to India and Ireland. This will go in tune with GC's intention to grow into the international market. With the company's planned growth, GC will be able to provide better services such as the introduction of technological changes and improved services provided to small business and consumer