Problem Solution: Global Communications
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Problem Solution: Global Communications
Problem Solution: Global Communications
Wall Street has recently been plagued by discouraging daily financial updates, decaying consumer confidence and a significant decline in the telecommunications industry. Various communication companies are grappling at their disappointing earnings and stakeholders growing pressure to succeed despite falling financial figures. Yet recession fears and the communication outlook for 2008 appear to be far worse than projected just several months ago. Unfortunately, Global Communications is facing the same downward financial forecast.
Global Communications is experiencing deflated returns, stakeholder pressure and industry competitiveness; in fact, too much competition. Local, long-distance and international markets are all competing for the same business. Just three years ago, its stock was being traded for approximately $28 per share. However, to-date, Global Communications stock is only valued at $11, more than a 50% depreciation.
Although Global Communications current financial forecast appears to be grim; their reemergence back into the industry is plausible. This paper will highlight the issues amongst its stakeholders, Global Communications problem, outline possible solutions and assess the corporations risk in the telecommunications industry.
Situation Analysis
Issue and Opportunity Identification
The unfortunate issue with Global Communications is deflated returns, stakeholder pressures and growing industry competitiveness. Yet their ability to rebound is possible if their stakeholders integrate their rights, ideas and values. Like its competitors, Global Communications must also become more market focused – more in touch with the fast-changing needs of the industry. Innovation and investment in new technologies will be more important than ever.
In short, increased profits require that organizations increase their ability to learn and collaborate and to manage diversity, complexity and ambiguity. A turn around wont be easy, but the key ingredients are in place to get the job done for the companys stakeholders sake.
In the chart below, Global Communications issues and opportunities are identified.
Issue
Opportunity
Reference to Specific
Course Concept
(Include citation)
Concept
Global Communications stakeholders did not properly forecast the developing trends in its industry.
Global Communications can begin to forecast its future resiliency within the industry by evaluating future revenue, economic trends, and new technological breakthroughs.
Revenue forecasting is a critical element of planning. Where should Global Communications stakeholders get the data for developing revenue forecasts? They should begin by looking at historical revenue figures. For example, what were last years revenues? This figure can then be adjusted for any significant trends discovered during environmental scanning. What revenue patterns have evolved over recent years? What changes in social, economic, or other factors in the general environment might alter their pattern? In the specific environment, what might Global Communications competitors be doing? Answers to such questions provide the basis for revenue forecasts (Stephen P. Collins & Mary Coulter, 1999, p. 271).
Forecasting
Global Communications stakeholders lack of focus on improving operations and bringing back customers who have gone to their competitors. This might explain the increase in the number of new competitors and its diminishing returns.
The use of competitive intelligence to determine what Global Communications competitor is producing and perhaps even the means by which they are producing it.
Developing useful plans often requires knowing as much as possible about what competitors are doing or are planning to do. Learning enough about competitors to devise proactive and reactive strategies, including competitors strengths and vulnerabilities, product strategies, investment strategies, financial capabilities, operational issues, and anti-competitive behavior (Gary Dessler, 2001, p. 147).
External and Environmental Scanning
Several of Global Communications stakeholders would like the corporation to market itself more aggressively on an international level; however, the opposition amongst its leaders is unsettling.
In most corporations today, executives are attached to specific functional departments or teams, such as production, marketing, finance, or human resources. Managing in a global business creates some special challenges in that regard. Executives must analyze how best to manage his or her functions domestically and abroad, while working together with other teams to make sure they achieve overall company goals (Gary Dessler, 2001, p. 55).
Marketing abroad is often a necessity today. Even the biggest companies in the biggest countries cannot survive on their domestic markets if they are in global industries. They must be in all major markets.
Global Marketing
The competitive forces that stakeholders face today and will continue to confront in the future demand organizational excellence. The efforts to achieve such excellence at Global Communications rely heavily upon its forecasting, external/environmental scanning and global marketing.
Stakeholder Perspectives/Ethical Dilemmas
Global Communications is seeking to reemerge ahead of its industry competitors. However, its stakeholders are at an impasse and prominent ethical dilemmas have surfaced. Its apparent that the overall goal and shared values that has been apart of the overall business strategy, has been side tracked by an over emphasis on self-interests. The desire to reemerge as a viable telecommunications company is being tested by each stakeholders desire to get more than the other.
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