Problem Solution: Global Communications
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Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS
Problem Solution: Global Communications
Mohammed Vasquez-Melgar
University of Phoenix
Problem Solution: Global Communications
Global Communications’ senior management has developed a new strategic plan to help the company realize growth, increase profitability and become a global source in a very competitive market. Global Communication is a telecommunications company who is currently experiencing diminishing revenue and profits. Over a three year period, the company’s stock dropped from $28 per/share to $11 per/share.
The industries in telecommunications are constantly growing and this competition is placing Global Communication (GC) under tremendous pressure. The primary problem the company faced was too much competition from other telecommunications companies. With this in mind, the company decided to introduce new services through the company and identify cost-cutting measures to increase revenue and profitability.
The company continues to lose ground and the stockholders have seen 50% depreciation in their stock value down from three years ago. The stockholders have become concerned about the company’s ability to regain their momentum. The company realizes their survival depends on their ability to determine future end-state goals while making critical changes to the company and possibility of losing dedicated and skilled employees due to plans for outsourcing technical jobs. Global Communications desires to maximize their profits and reduce cost by marketing itself on an international level and being recognized as a global resource. The competition is forcing GC to change their strategy and improve service packages to compete with the larger telecommunications corporations.
Situation Analysis
Issue and Opportunity Identification
The decision to outsource will make it tough for Global Communications to keep loyal employees. This also will affect the hiring and training process of potential new employees. Global communications will notice a decline in employee morale, which will turn into less production from the employees. Communication is a key factor in the success of any organization and this paper will identify solutions for such training implementation to help senior management in being better communicators and open the doors to negotiate with the union in service for the welfare of all their employees.
The Union notices that with layoffs, negative results will shortly follow. That is why the union does not want to outsource jobs to overseas call centers. When GC realized that they would have to do layoffs and downsizing, they limited options for those wishing to remain with the company. Just as business practices differ, one can safely assume, layoff of employees differ as well.
Stakeholder Perspectives/Ethical Dilemmas
Global Communications stakeholders include Customers, Stockholders, International Contractors and International employees.
The biggest conflict in this scenario is the realistic massive layoffs that are forthcoming. Employee morale and productivity will drastically decline when they find out they are losing their jobs to foreigners. These are the same loyal employees who have worked hard to make Global Communications successful today. But the ethical dilemma is that Global Communications cannot survive unless these changes are made. However, they do have a social responsibility to these future unemployed workers. The Union is not supportive of Global Communications’ decision to go global. Global Communications’ employees are not happy with the idea of the company going global either. The employees will face being laid off if they stay with the company. If they decide to relocate with Global Communications, the employees will take a pay-cut. There has been a loss of trust between the employees and Global Communications. Global Communications’ plan leaked out to the board members and they were upset that no one came to them with the company’s plan.
Problem Statement
Global Communications has spent many years at the top of the telecommunications industry. They are dealing with tougher competitors in the market. Sales have been lackluster and poor returns have the company wanting to restructure. The most noticeable decline is the decline of stock prices, which is more than 50% in the past three years. This problem has stockholders wondering if Global Communications can exist in the new world. Global Communications decision to outsource thousands of jobs to India and Ireland is difficult because of the loyalty employees have given throughout the years. Huge layoffs and a decrease in employee health/education benefits will create uproar of dissatisfaction with in the company.
Global Communication has disregarded the Union in this process. The Union is agitated by Global Communications failure to recognize them as a partner. The Union would have like to know about the decision to outsource, since it greatly affects them. In the Union eyes, Global Communications did not assess all options. The Union feels like the contract was manipulated. Since the change will affect the Union, they have opted to take legal action against Global Communications.
Global Communication is up against heavy competition in the telecom industry. Cable companies who offer more complete packages to consumers. Companies have packages that include telephone service, computers, and television services. International outsourcing means a trend of growth opportunities and profits that will increase the market share. Global Communications wants to take full advantage of these much needed benefits. “When customers become more demanding, some business-to-business (B2B) companies are trying to create and capture more value by collaborating with them to develop tailored products, bundles of products and services, or more elaborate “solutions” that integrate proprietary intellectual property or expertise. Roughly half of all collaborative sellers enjoy only modest benefits from their efforts, however, and a quarter actually lose money, according to a survey conducted by the journal “McKinsey Quarterly,” of more than 200 sates executives at Fortune 1000 companies. But for the leading sellers in the survey, collaborative