Problem Solution: Global Communications
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Problem Solution: Global Communications
Problem Solution: Global Communications
Global Communication Company is entering into generation that depends on its technology for almost every facet of their life and living. Global Communication is a telecommunications company that is faced in a financial crunch. The economy is making everyone feel the financial burdens and including GC. Over the last 3 years, the stock value of Global Communication has dropped from $28 a share to $11 a share, which is more than 50 percent depreciation. This is one of the many reasons why GC has to change the way they conduct business, because if no one is buying their stock they have no financial backing. Also it will appear that GC could be heading into bankruptcy because the lack of stock buying, trading and value. Not only is stock value affected but the lack of not fitting into industry trends, in which the consumer may seek other options the will suit their technology needs. Global Communications has some problems that need to be addressed and some solutions that need to be put in to place in order to keep GC a striving competitor in the telecommunications industry. They must upgrade their media and boost new services for the customers. Technology is critical to Global Communications survival. Outsourcing jobs to other countries is an avenue that they consider to cut cost. Employees of Global Communication will be affected the most by outsourcing because outsourcing jobs to other countries will cut labor/jobs in the US. These are situations that need to be addressed and assessed within the Global Communication Company.
Situation Analysis
Issue and Opportunity Identification
Many issues have caused an instant reaction to keep Global Communications stable with the intent to progress. The first problem that GC faces is Wall Street and stockholders concerns with their depreciating stock value. The profit returns from GC stock have decreased tremendously with in a short period of time. The stakeholders have reasonable complaint because can argue that the progression of business that GC is offering is not beneficial to the stock value. However, Wall Street is concerned with the influx of telecommunication companies into the stock market; Global Communication is losing their edge as a serious competitor. These changes also affect the employees of GC. GC does not have proper communication with their employees. They did not include or share with the Union the changes that will affect the employees. Global Communication employees are in distress and feel as if they have been deceived. Unethical actions of the behalf of GC will be an issue when they try to do layoffs. Legal actions from the union are pending and this might hold up progression with GC’s new plan.
Global Communication must now take a serious look of where the company is heading and set new goals for the company. Although they have a plan to increase revenue within the company, they must repair employee and management relationships. Global Communications management should consider a different approach when dealing with employees. Thirdly, because of Global Communication’s downsizing, employees are facing job replacement or lay offs. GC has trimmed the budget so that if an employee decides to relocate they will have to a 10 percent salary cut. GC has put in place of the salary cut, they could offer a 15 percent retention bonus. This will offset the initial salary cut for the first year. For the rest of the employees that will be laid off, they bring in a job placement counselors that will help them find new employment
They must first eliminate competition such as cable companies and local telephone companies. They have planned to incorporate with an introduction to new services. Global Communications has taken initiatives to create alliances with a satellite provider that will offer video services and broadband. They also have partnered with a wireless company that will offer internet access using a wireless telephone or PC cards.
Secondly, Global Communication has to cut cost. In order for them to upgrade service they will have outsource some of their jobs. They will be closing down some of their domestic call centers and outsourcing them to India and Ireland. This will cut labor cost and reduce unit cost for handling calls. It will also allow Global Communication to enter the international market with the goal of becoming a true global telecommunications company. GC will be able to increase the technology that India and Ireland have in place. Thirdly, because of Global Communication’s downsizing, present employees are facing job replacement