Problem Solution:Global Solutions

Problem Solution: Global Communications

Introduction

This analysis presents the trials and tribulations that Global Communications confronts before and after the execution of a move toward to becoming a global communications source. Through the course of this paper, issues and opportunities confronting Global Communications, then the ethical predicaments faced by the stakeholders and finally the company's end state vision will be described. Lastly, this analysis also includes the detailed gap analysis for Global Communications outlining their current business perspective and future mission, vision and goals.

Global Communications was falling behind in the telecommunications industry prior to the outsourcing issue. The entire telecommunications industry had descended into hard times due to cable companies entering the market. Global Communications had been hit hard with not just the increased competition but smaller profit margins, and the costs of doing business. Global Communications realized that they need a new strategic plan, but will need help in implementing it.

Though it seems obvious, the problem Global Communications is facing is not easy to identify. It is easy to say that there is too much competition and blame outside entities for their woes. The true issue at hand is Global Communications’ inability to compete effectively in the market with both new and old competitors. The inability to compete can be centralized into a failure to differentiate their offerings from those of the competitors. Global Communications most recent marketing campaign stated “Our Edge is People,” but this is not representative of the company. First of all, this slogan does not define to the customers what Global Communications employee skill set is. Second, this does not confront the outsourcing issue. Though Global Communications has identified the competitive points that seem to be hurting them (such as new features, televisions, computers, phone service) it has little to do with the people. Outsourcing the support jobs may improve the quality of employees, but unless this is a competitive issue, it may not have a significant effect beyond the reduction in costs.

Situation Analysis

Issue and Opportunity Identification

Several issues can be identified for Global Communications in this scenario. The first issue is Global Communications plummeting stock price. When stock prices drop, stockholders and members of the Board of Directors will demand that immediate, corrective actions occur. The second issue faced by Global Communications is increased competition. Not only is this a difficult issue, it is also the main reason Global Communications’ stock has been declining. A third issue that Global Communications faces is the negative internal and external publicity regarding the layoffs that are planned. Global Communications plans to cut costs and become more competitive by moving some of their call centers to India and Ireland. The fourth issue is internal communications. Global Communications as an organization should consider all possible motives to resolve issues and make the best decisions. "By improving decision making, knowledge management, employee needs and coordination; a company can progress and retain the name in the communications industry. Workplace communication has a significant effect on organizational performance.” (McShane & Glinow, 2005) "First organizations depend on the ability of people to coordinate their individual work effort toward a common goal,” (McShane & Glinow, 2005).

Faced with these economic issues, Global Communications is coming together to strategize plans to restructure the company. With these four specific issues, Global Communications is having difficulty disseminating the information sensitively to their employees. Global Communications is known for treating their employees well, so they do not want to ruin that reputation because their employees are a vital part of the company. In addition, local, long-distance and international markets are all competing for the same business but the telecommunications industry suffered a huge blow at the hands of the cable companies. Global Communications also has to improve on the technology areas in addition to outsourcing the existing technical call centers to India and Ireland for effective cost cutting.

Issue and Opportunity Identification

• Issue #1: Plummeting Stock Price

o Opportunity: The idea that downsizing increases stock prices is fueled by the belief that if earnings are to be maintained and improved, corporations have one alternative-cut costs. This usually meant cutting jobs because trimming the payroll seemed to be an easier way to increase profits in the short run. Downsizings also had everything that a company wanted when trying to increase stock prices-they were tragic and newsworthy and they showed that a company was serious about its cash flow. Downsizing not only reduces the number of employees, but often shrinks the number of management levels as well, and middle managers have been particularly vulnerable to downsizing cycles. Downsizing is usually done by a company because of the perceived effect of more efficiency, resulting in cost reductions.

• Issue #2: Increased Competition

o Opportunity: the growth of outsourcing will increase the competition among outsourcing providers. Companies looking for outsourcing contracts will emphasize the competition by acting selectively in signing agreements, breaking up their needs and inviting bids from several smaller vendors rather than the two or three with the service breadth and financial capability to handle it all. (Change In Outsourcing Industry)

• Issue #3: Negative internal and external publicity regarding the layoffs

o Opportunity: Focus on Productivity

Layoffs are distracting, there is no way around it. During layoffs it is crucial that the company use metrics and rewards to narrow the focus and avoid distractions. Managers must raise both performance goals and the performance-based rewards associated with them, so that everyone notices that things have changed. Results metrics that are routinely distributed to managers help to keep attention focused on your already worried customers. Metrics send get the message across to employees about what is important and rewards makes them do the expected much faster.

o Opportunity: Work with Managers

Bad managers are always a problem.