Situation Analysis And Problem Statement: Global Communications

Running Head: SITUATION ANALYSIS: GLOBAL COMMUNICATIONS

Situation Analysis and Problem Statement: Global Communications

University of Phoenix

Situation Analysis and Problem Statement: Global Communications

Individuals and organizations seldom take the time and the effort to solve a problem systematically. Managers are faced with pressures to increase profits, reduce costs, and improve company growth while meeting the needs of shareholders, employees, and customers. Sometimes these decisions seem impossible because of the conflicting rights and values of the different stakeholders involved. The 9-Step Problem-Solving Model is a tool managers can use to systematically approach a problem. From the whitepaper, "Problem Solving Approach: An Example-A Life-Work Scenario", using the 9-Step approach will provide "a structured and simple approach to solving challenges, realizing opportunities, and addressing ethical dilemmas and complex situations for work and for life."

The 9-Step model will be used to analyze the Global Communications Scenario. The model will be used to identify challenges and opportunities the situation provides, taking into account all key stakeholders' perspectives, and any ethical dilemmas that might be present. A problem statement will be developed in such away that multiple possible solutions will be feasible. By realizing the opportunities and addressing challenges, a desired end state and end state goals will be developed. The situation must first be described to identify the issues and opportunities the situation may pose that will be the basis of defining the problem.

Situation Background (Step 1)

Global Communications, like many other telecommunication companies, is under economic hardship due to competition in the telecommunications industry. Cable companies are providing their customers with computer, television, and telephone services. At first Global Communications had mixed results about selecting and entering international markets. To improve Global Communications' market position, the Senior Leadership team, without input from all key stakeholders, proposed a plan to the President and Board that would allow the corporation to compete in the local and global markets and cut costs to improve profitability.

In order for Global Communications to retain competition they have decided to introduce new services. The company has come together with a wireless provider to offer Internet access through wireless telephones and with a satellite provider to offer video services. Global Communications plan to cut cost by outsourcing technical call centers to Ireland and India. The outsourcing will relocate many employees, but some will still lose their jobs. The Union has given up 20% of the health and education benefits to help their situation, so they are not delighted about this decision. From the aspect of key stakeholders, there are many issues and opportunities that have grown because of Global Communications new global strategy.

Issues and Opportunities Identification

With the telecommunications industry growing, Global communications is having difficulties staying in competition with the telecommunications industry. With many companies now offering television, telephone, and Internet service it has placed Global Communications in a financial hardship not being able to compete. The decision was made to outsource call centers to Ireland and India. There are hidden costs in outsourcing such as communications and coordination obstacles (Gilley and Rasheed, 2000).

Global Communications did not inform the Union of its new strategy. The Union is upset because the company did not withhold its philosophy of "Our Edge is People." Union workers will lose their jobs and be forced to take pay cuts due to the outsourcing of technical call centers. In order for the company to grow, Global Communications must address the issues and opportunities.

Global Communications will announce new services to its small businesses and customers. The company has come together with a satellite provider to offer video services and with a wireless provider to offer Internet access through wireless telephones.

The merger with the wireless and satellite providers allows Global Communications to become more competitive. Outsourcing the technical call centers will allow for growth in the international market and will develop opportunities for stakeholders. Gang and Gilbert (2004) suggested the main reasons for outsourcing are based on economies of scale or scope. Setting up the new call centers may reduce the unit cost for handling calls by nearly 40%. Global Communications hope that higher salaries and career opportunities