Problem Solution: Global Communications
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In todays world, the simple idea of communication has reached unprecedented levels of sophistication. With increasing pressures from competitors in the telecommunications industry, Global Communications (GC) has encountered a depreciation of fifty percent in stock within the last three years. To regain its place in the market, GC has to offer more services at lower costs, which will benefit the shareholders. The purpose of this paper is to address the issues faced by Global Communications and investigate the issues and opportunities available to Global Communications management, the risk associated with the issues and opportunities, alternative solutions to alleviate negative response, and conclude with a viable and obtainable set of goals that could allow Global Communications to become a leader in the telecommunications industry.
Situation Analysis
Issue and Opportunity Identification
The telecommunications industry experienced rapid growth in the recent years and substantial investments in transmission capacity. This rapid growth resulted in immense economic pressures on the industry and Global Communications is reeling from these pressures. Additionally, the telecommunications industry is currently experiencing major competitive pressure from cable companies who now offer competitive services in areas such as telephones, broadband, wireless and security. This stringent competition effectively reduced Wall Streets confidence in Global Communications and resulted in fifty percent depreciation in GCs stock value.
In todays economy, more organizations are initiating organizational changes that are intended to produce increased productivity while decreasing cost. Economies of scale become a Key Point Indicator (KPI) as firms implement their reorganizations and move forward in their business practices. Many firms who are and have implemented reorganizations make the decision to outsource some products and services to foreign entities and subsidiaries and this sends a rippling effect throughout the U.S. economy.
Global Communications realized organizational changes were needed to continue to operate effectively, ethically and with corporate social responsibility. Managing in the new competitive landscape is not easily maneuvered and remaining profitable and competitive is two of managements primary concerns. Conceptual and decision skills involve the managers ability to identify and resolve problems for the benefit of the organization and everyone concerned. Managers use these skills when they consider the overall objectives and strategy of the firm, the interactions among different parts of the organization, and the role of the business in its external environment (Bateman-Snell, 2003).
Traditionally, frontline managers have been directed and controlled from above, to make sure that they successfully implement operations in support of company strategy. But in leading companies, the role has expanded. Whereas the operational execution aspect of the role remains vital, in leading companies frontline managers are increasingly called upon to be innovative and entrepreneurial, managing for growth and new business development (Bateman-Snell, 2003).
In todays international markets managers must be able to make astute decisions based upon the stages of decision-making: (1) identify and diagnose the problem, (2) generate alternative solutions, (3) evaluate alternatives, (4) make the choice, (5) implement the decision, and (6) evaluate the decision. Furthermore, effective managers must be able to realize some discrepancy between the way things are and the way things ought to be when initiating and implementing organizational changes. In addition, ethical and legal considerations must be thought-out carefully and decision makers must consider ethics and the preferences of many constituent groups – the realities of life in organizations (Bateman-Snell, 2003).
Global Communications responded by introducing new products and services on local, national and international levels. In addition, Global Communications is implementing a reorganization plan that will reduce overhead, increase profitability and increase their global presence. To assure global expansion, Global Communications is implementing growth plans to outsource its call centers to India and Ireland. To boot, Global Communications has developed a partnership with satellite providers to offer new services such as video and broadband connections that will allow small businesses to anytime Internet access using wireless telephones or PC cards.
In order to implement these changes, Global Communications will need to renegotiate union contracts and inform employees of the impending reduction in force. This will not be an easy task given that the union leadership was left out of the decision-making process and just recently agreed to reduce education and benefits in order to help GC. Poor communications with the union has resulted in serious allegations and possible litigation. When the union received the downsizing information, it was after the fact and the Union was outraged because Global Communications executive management failed to practice one of the key factors associated with organizational behavior – open and effective communication.
Stockholder confidence is waning because of the decline in stock prices, more competition, and financial resources for the reorganization. The stiff competition must be benchmarked for products and services and Global Communications perched on the cutting edge to keep abreast and ahead of competitors in efforts to sustain new market shares.
Another issue that may arise for Global Communications is one of cultural differences as GC enters the foreign markets of Ireland and India. Cultural and diversity issues may arise and Global Communications may encounter cultural issues that they have not yet addressed. Global Communications must begin to recognize and address the issues that may arise as they begin to work with cultures that they may not have encountered in the past.
Global Communications faces the issue of employee retention of the highest performing employees. These employees may view Global Communications as an unethical employer and seek employment elsewhere, therefore abandoning their organizational commitment to Global Communications. Employees that have the ability to find other employment with companies they perceive as more stable, with improved opportunities, will leave unless enticed to stay through some sort of incentive. This may prove to be costly for Global Communications.
Although there are numerous issues, numerous opportunities exist as well for GC. For instance, the strategic alliances with satellite and wireless providers offers new market segments