Global Communications
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Situation Analysis and Problem Statement: Global Communications
A well established body of evidence now shows that the confidence in the telecommunication industry is waning. Stockholders are bemoaning diminishing returns and doubting the ability of the telecommunication industry to grow again. The economic pressure working against them was very noticeable in Global communications stocks, traded three tears ago at $28 per share; today, the stock is valued at $11, more than 50% depreciation. Stakeholders are looking for ways to turn the company around which can range from expanding the business from local to international, outsourcing jobs from expensive labor areas to dirt cheap labor areas in an effort to maximize profit at the expense of the new technology that will be added to the their line of business. Employees development was an issue to be addressed in relation to the union in which they belong . The organizational behavior concepts influencing outsourcing, union management in relation to management practices must be carefully evaluated to avert losing its valuable employees. The stakeholders must considers issues like: the new attitude of those employees losing their jobs to other parts, emotions that come along with those getting a reduction in pay, recent cut back in the benefits of the employees in an attempt to save the company by the union members. The stakeholders are looking for ways to maximize profit and at the same time claim global dominance in the telecommunication market. The union was heading the same direction based on their recent cut back in benefits. From this, it is evident that common grounds can be reached in relation to maximizing profits without little or no job loss. Outsourcing could be
considered an aggressive approach that can be detrimental to the long-term goals of the company and what it had stood for in the past. In the Unites States Postal service, union are well organized, productivity of it workers is easily noticeable in the way business are conducted and like wise with the railroad business.
Describe the Situation
Issue and Opportunity Identification
Global communications has a lack of stakeholder alignment that will hinder their ability to implement new products and services/solutions. Lack of stakeholder alignment could be seen in their need to pump up volume, offer local and long distance services to small business and customer get allied with satellite providers to offer video services and broadband, and move to India and Ireland to improve technical sophistication. From all these, the cost of doing this must be reduced along with benefits offered to employees so as to stay afloat.
According to the CIO Survival Guide-Offshore Outsourcing: “Offshore outsourcing looks attractive to CIO who is looking for ways to cut expenses and get to the market quicker, but offshore outsourcing is not the perfect plan for every one. Offshore outsourcing allows IT organizations to ship work overseas to countries, such as India, Russia and China for a fraction of the cost. However, with this cheap labor come concerns such as language barriers and security.” From this, Global Communication also has to deal with language barrier in India in relation to the culture. But in Ireland, immigration policies in relation to work visas would be another issue. Ireland would prefer their indigents over expatriates, which would better their economy and standard of living. The average income per family would also increase since these jobs would traditionally pay much better than those there already. The expatriates tends to take their resources back to their country of origin, therefore; the benefit of having them is further reduced-the money they have earned was not spent in their economy.
The opportunities that Global communication would enjoy includes, mixed results by entering the international market by making alliances with satellite providers to offer video services as well as a satellite version of broadband. Alliance with wireless providers will also allow small business owner anytime Internet access using wireless telephone or PC cards. From this, their business opportunity has increased; small business owners are always dedicated to a reliable service when tested to be good.
Cost cutting measures that will improve profitability was identified. Global communication identified that in order to maximize both of these initiatives, the company must market itself more aggressively on an international level with the goal of becoming a true dominance in the industry.
Stakeholder Perspectives/Ethical Dilemmas
Profit margins of high value at any cost to the company, putting the leadership in a responsibility to deliver at all times. Modest profit, that keeps the needs of their employees in consideration, in reference to the image of the company and how they are perceived. Good employees form the backbone of any successful business, just like the saying that “behind every successful man is a woman.” Making all part owners of the company pushes the company in positive direction. If there is no domineering stakeholder, decisions would be better agreed upon. The union members would not see the reduction in workforce as threat to their jobs but will at reduction in pay along with the 15% retention bonus for those that stuck around with the plan of the company. In relation to those that were laid offs, they should be offered a severance package and first opportunity to return if new positions becomes available over time. Stock options could also be used as incentives for the reduction pay initially to encourage ownership of the company by the workers.
Frame the “Right” Problem
Global Communication aspires to be in the forefront of technological advances spending the least amount in relation to labor cost. They also want to improve their demand for broader product and service. The idea of introducing new services primarily to small business and consumer customers, who will now be served in the local and long distance markets across the country. They have been able to identify their decline in the research and development innovations and understand it as an internal weakness. Global Communications was able to identify