Problem Soultion: Global Communications
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Problem Solution: Global Communications
Reacting to the Unions outright communications action against GC, this paper focuses on alternatives to moving domestic call centers to India and Ireland in order to save face for the company and ensure future success of the organization. GC should be able to reach an agreement with the Union, the majority of its current workforce, and the satellite provision partner while not only maintaining the current customer base, but also expanding both domestically and internationally. The strategic plan would inevitably include initial downsizing and layoffs in order to provide short-term cost reduction. The long-term implications will be explored, all negative consequences and risks will be assessed and researched, and the goals and strategic objectives will be revisited over and over again. The goals and objectives will, most importantly, be communicated at all levels of the organization and to all key stakeholders.
Situation Analysis
Issue and Opportunity Identification
GC is facing economic pressures from rising competition in the telecommunications industry. There are many International companies competing for business worldwide in providing local and long-distance services. Cable companies have begun to tap into the telecommunications industry market through package deals including home computers, television and phone services. Competition in the U.S. has spurred a decrease in rates and plans offered, which cuts into profits as well. Many people in the business community speculate whether or not the telecommunications industry will bounce back, or transition into a new, evolved technological powerhouse.
GC failed to involve the Union in strategic planning operations, which tarnished the relationship between the two organizations. The Union has now vowed to voice opposition to GC publicly and lawfully. The Union works for the employees that they represent, and will do everything possible to ensure jobs and benefits, which in turn ensures them members. GC has threatened the relationship it has with existing employees, and this could soon have a trickle effect into he hearts and homes of customers. The telecommunications industry is vulnerable and competitive; it is easy for consumers to switch loyalty. The customer defiantly has the upper hand over the industry itself.
Stakeholder Perspectives/Ethical Dilemmas
The various stakeholders of the GC scenario identified are the stockholders, the Board of Directors, the middle managers, the labor force, the representing Union, existing customers, and the satellite provision partner. The stockholders and Board of Directors are concerned with the fast decline of stock value; over half in just three years. While this may be no different than other companies of the same size, in the same industry, stockholders and Board members will value a strategic plan that will increase both customers and customer services in order to build wealth. Ideally the Board will also adhere to a standard of excellence for employee treatment, company policies and organizational procedures. The Board supports efforts to globalize, as well as increase efforts to compete in local markets.
GC is teaming up with a satellite provider in order to expand service capabilities. New services will include video services and a satellite version of broadband. This will allow Internet access with wireless connections and PC cards, increasing small business and consumer capabilities across the country. The satellite provision partner values GC for the customer service efforts they have made as a company, the ethics of the organization as a whole, and the effective communication skills the company can bring to the table in the partnership. The satellite providers want GC to be as successful as possible, enhancing their own stock value and company perception.
The Union, on the other hand, is more concerned with the employees rather than the company itself. The Union is paid to work for the people that work for GC. Their interest in the company is to provide the best possible solution for the loyal members of the Unions, and their families. The relationship between the Union and GC was built on trust and communication over time, and in one fall swoop, GC squashed that relationship. The Union wants to see GC fully research and maintain efforts to exist locally, rather than outsourcing to International markets where they have no control. The labor force, represented by the Union, will have a very personal interest in the company decisions. This group of stakeholders will not care about the overall value of GC, or the future success of strategic plans. Their interests will lye solely in the preservation of their job, and any personal gain or growth opportunity created by changes within GC. The managerial force of GC is considered differently than the labor force of the company because the assumption is that these are the folks who have more invested in the success of the company, as well as personal loss if the company fails, or they lose their jobs. This group will experience a tremendous amount of pressure during layoffs, and forced expansion knowledge base in order to survive personally in the GCs new direction for the future.
Lastly, the customer base, both current and future is a very key stakeholder for GC to appeal to. The customers will hold considerably different perspectives, ethical decisions, and values regarding the company than the various internal groups mentioned above. The intelligent and informed consumer may care about the companys ethical policies and procedures, but the typical consumer will consider two very basic bottom lines; cost and quality.
Problem Statement
GC will ensure future sustainability and steadily raise stock value through a multi-pronged approach of increasing technology offered to consumers through strategic partnerships, as well as initial downsizing to reduce labor costs. GC will develop a clear communications plan, specifying various actions of the strategic plan and overall growth strategy with the Union and managers at all levels. The value of retained and promoted employees will be highlighted and harbored. Employees being released will be notified in a dignified, speedy manner, and the Union will be involved at all levels of this process.
End-State Vision
GC hopes the strategic plans to downsize is only an initial response to the current situation, and that overall company worth will expand in the future creating more jobs in the long run, in more advanced and diverse technological fields. Incorporating downsizing techniques into the strategic