Problem Solution: Global Communications
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Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS
Problem Solution: Global Communications
Edgardo J Ranta
University of Phoenix
Problem Solution: Global Communications
Global Communications is a telecommunication company whose profitability has dropped significantly over the past three years. This analysis is a tool that will be used to identify Global Communications area of opportunity, identify specific stakeholders and ethical dilemmas which Global Communications is facing. By identifying these obstacles, Global Communications will be able to develop an effective, concise and ethical method where all stakeholders will benefit from the end vision results. This documentation will help third party spectators evaluate the situation quickly and effectively.
Situation Analysis
Issue and Opportunity Identification
Global Communications is a telecommunications company whose returns have been less than spectacular. Three years ago their stock was trading at $28 per share and today it is valued at $11. The situation that Global Communications is faced with is that it has too much competition from the international market, and cable companies who offer multi package discounts. Global Communications needs to find solutions that will make them more competitive in the telecommunications industry.
Global Communication’s response to its current situations is as follows.
To increase shareholders interest Global Communications is implementing a two pronged plan. Phase one is to introduce new services to the private and public sectors for both local and long distance services. The second part to this phase is an alliance with satellite providers to offer television programming and internet services to its cliental. These two parts will address Global Communication’s need for product variety it can offer to potential customers. The second phase of Global Communication is to outsource its new work force to cut cost and globalize its presence into the international market particularly India and Ireland.
Global Communication’s area for opportunity is better communication with the union. Senior management at Global Communications presented the board with a solution to outsource jobs to India and Ireland to reduce unit cost by 40%. The problem was Global Communications lack of communication with the union. The union was left out of the decision making process to outsource jobs because of obvious reasons Global Communication employees are going to lose their jobs to international outsourcing and the ones who did end up staying where going to suffer a 10% decrease in pay. This does not include the previous arrangement of a 20% decrease in benefits. We know that Global Communications has a responsibility to the shareholders but the way it is conducting itself really shows that Global Communication doesn’t value its employees that provide them with a cutting edge. Global Communications foremost priority is to fix relations with the union before third party involvement. Once relations are mended Global Communications can look at the first phase of their initial plan to increase product services.
Stakeholder Perspectives/Ethical Dilemmas
From the shareholders perspective Global Communications is in need to globalize and offer more services to new and existing customers. I think that the fist part of Global Communication’s plan to introduce new services to small businesses and existing customers for both local and long distance services and its alliance with satellite providers to offer television programming and internet services is a great idea. It addresses Global Communication’s need for a diverse product variety it can offer to potential customers.
The ethical dilemma which we believe to be the main focus for Global Communications is their relationship with the union and upper management. As of now Global Communications has alienating and dismissing the union. Global Communications just left the union out of the decision making process for outsourcing new jobs to Ireland and India. They never addressed the union face to face with the idea and just let it trickle down the grape vine. I believe that this was the worst thing that Global Communications could have done because they have lost face with the union and plausible third party intervention.
Problem Statement
Global Communications will increase profitability and shareholder’s return on investment by developing