Global Communications Benchmarking Scenario
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Introduction
With the decision to move internationally, Global Communications will be faced with many challenges that they will have to overcome in order to be successful in the implementation of their plan. To help offset the risk of such a drastic change and to assist in identifying potential solutions for issues that might arise, generic benchmarking can be used is this scenario as a tool to help guide Global Communications. In the following pages, benchmark comparisons of Dell Computers, Nortel, General Motors, Proctor and Gamble, Motorola, Levi Straus and Company, South Jersey Gas, and Ford Motor Company will be discussed. Issues that these companies have or are dealing with will be examined as well as the solution that was implemented to succeed.
Dells Computers: Outsourcing by Dwight Wongus
In the Global Communication scenario, the issue with the outsourcing concerns me. My position is that Global Communication has an obligation to its employees and the community. Outsourcing eliminates jobs from within the community, which leads to economical hardship for everyone associated. Outsourcing will be an opportunity for a business to reduce cost but at what price. Dell Computer Corporation has experienced loss in loyal customers because of their decision to outsource their Tech Services. There can be a tremendous trade off experienced by a business that decides to outsource as with the case with Dell computers. The performance saving may not be worth the loss of loyal based customers do to dissatisfaction in poor customer service.
As a result of Dells outsourcing to a foreign country where English is not their first nor second language and a workforce that speak in a heavy foreign accent, customers are becoming increasingly dissatisfied with the customer service. Long time customers of Dell are extremely dissatisfied and starting to seek other computer manufactures for what their not able to receive from Dell, quality customer service support.
After many years of outsourcing and a decrease in customer satisfaction, Dell has decided to stop their customer tech service support from India. Instead, they will have tech supports personnel from call centers in Texas, Idaho, and Tennessee begin to handle them. Cutting cost is a good approach for Global Communication in terms of cost reduction, but at what cost to their employees and consumers? The decision for Global Communication to outsource the call-handling center can be a horrible experience if they encounter the same language problems that Dell is currently experiencing.
Nortel: Business Alliance with Microsoft by Dwight Wongus
To compete for more market share, Global Communication has established an alliance with a satellite provider and partnership with a wireless provider. By engaging in this new partnership, Global Communication will be able to share in on some new technology, marketing strategies, and business expertise that this alliance will bring to the partnership. This is an opportunity for both companies to experience new growth opportunities and forge ahead with the potential to transform their partnership into a strong alliance within the communication industry. Ultimately, this would lead to wide-area growth in the communications industry, reducing costs, complexity and improving productivity for customers.
When Nortel combined their world-class network quality and reliability approach with Microsoft (Registered Trade Mark) softwares ease of use, the alliance accelerated the availability of unified communications. Global Communication could take that same approach with the satellite provider by dominating the small businesses and consumers customers in the local and long-distance area creating completion for the cable companies. It will also allow for a quicker collaboration effort of new technology, and innovative applications. Merging their existing technology to create a larger foothold in the local market would allow the Global Communication and the satellite provider to combine resources and start collaborating toward a common approach to capitalizing on the local and long-distance.
Nortel and Microsoft were able to have a deep collaboration in production development, which allowed them to deliver high quality, highly reliable solutions for critical communication systems. Global Communication can now explore with providing their local and long-distance services wireless and over the internet. This venture opens up opportunities that were not realized prior to the partnership. The partnership will allow Global Communication to be position to drive the next major advance in the communications industry providing the small business and consumers local and long-distance service, and reduce cost.
General Motors: Outsourcing by Gregory Jose
One of the issues facing Global Communications is outsourcing. They are looking at moving their technical centers overseas to India and Ireland. When a company looks at outsourcing there are a number of issues that arise. Some of these are contract negotiations, management of the supplier companies, and standardization of processes. GM is large company who has also had to face these issues and by benchmarking their solutions Global Communications can take away some valuable lessons.
When GM first started outsourcing it was to a company it was with a former subsidiary, which had become an independent entity. Over the years since their first venture into outsourcing they ended up working with multiple supplier companies all over the world with many more subcontracted companies as well to provide IT solutions. What this led to is a plethora of different contracts, relationships, and processes. Instead of focusing on its core business GM now had to spend an ever increasing amount of time managing its outsourcing. In essence the benefits from outsourcing became less and less as they were offset by the costs of managing outsourcing. If Global Communications is not careful this same fate could befall it. GM solved these problems by implementing standardization. By having multiple contracts time had to be spent on negotiating and renegotiating each one of those contracts. By standardizing what GM was seeking and what the terms of the contract would be there was still room for some negotiation and customization, but less time had to be spent hashing out an entirely new contract each time one expired.
By having multiple suppliers of IT solutions GM also had to spend time and money managing the relationships with these suppliers and their subcontracted companies. By standardizing the interface used for communication with suppliers and requiring the suppliers to deal