Benchmarking

Global Communications finds itself at a crossroads. Faced with a declining market share it looks to increase profitability using a double-pronged approach. First, it plans to diversify its product line through an alliance/partnership with a growing satellite company. This alliance will allow Global Communications to offer more than just phone service to its customers. Secondly, it looks to reduce its overall labor costs by reducing its United States based workforce through the outsourcing of some its technical call centers to India and Ireland where labor costs are traditionally lower. Before choosing any single course of action, Global would be wise to examine the following concepts and their success and/or failure when attempted by other corporations. These concepts are:

1. Customer service and reliability

2. Elimination of communication barriers

3. Looking to the long view

4. Carefully research the target customer base and brand the right way

5. Create strong alliances between partners

6. Increase employee loyalty through effective communications, avoid the grapevine as the communication corridor at all costs

7. Cultivate an environment of trust and employee involvement.

The first concept is customer service and reliability. This is something that the first company, Southwest Airlines, built its foundation on. To the executives at Southwest their most important customers are their employees. Their philosophy is that if you treat your employees right then they will treat your outside customers right. By focusing on the concepts of customer service and reliability, Global can avoid laying off workers.

Ford Motor Company faces many of the same issues that Global is dealing with. Like Global, they are utilizing a dominating conflict style to ensure their survival. Unlike Global, they are educating their employees and keeping them involved in the process. Instead of simply saying, they are eliminating thousands of jobs they are offering buyouts, educational benefits and other incentives to their employees. These incentives are an attempt to persuade employees to leave Ford rather than forcing them from their jobs. By working together and communicating Ford is able to address both the needs of the employee and the needs of the company.

Global Communications would do well to examine the current plight of Countrywide Financial Corporation, one of many mortgage lenders struggling to survive the current sub-prime mortgage crisis. Countrywide failed to take the long view. They wrote mortgages to risky borrowers and in the process gained huge profits. Their attitude was lets make hay while the sun shines (or while the real estate market is booming) and we'll worry about tomorrow when it comes. While this attitude helped them to become one of the leading lenders in this country, tomorrow has now arrived and Countrywide is now struggling for survival. Global can avoid this pitfall by taking the long view; do not look for the easy payoff.

Global is looking to diversify its product line and reach new customers. Apple, Inc. is a great role model for successful diversification of a product line. By moving into the consumer electronics market with the introduction of the iPod in 2002 Apple was able to dramatically increase its profits and at the same time drive sales of its original products--computers. How did they do this? Apple is an expert at determining their target group, figuring out what they need to do to capture their business, and then taking steps to insure that they keep that business. Global would do well to follow those three steps in the introduction of its new venture with the satellite company.

Another concept for Global to examine as they embark upon their joint venture is the importance of strong alliances between partners. This concept is the basis for Coca-Cola's tremendous success. Business Week identified Coca-Cola as the world's most recognized brand. The Coca-Cola Company operates in more than 200 countries, and on a global basis, they have the most inclusive workforce in the world. Their greatest opportunity is maximizing assets. According to Neville Isdell (CEO), "I believe diversity is a great enabler of our fulfillment of the vision 'Manifesto for Growth'. I see diversity as a business imperative that will help the company achieve sustainable growth and be the most respected company in the world." (The Coca-Cola Company) Coca-Cola is working with their bottling partners, suppliers, other businesses, governments, NGOs, and community leaders to develop and implement innovative solutions to global challenges. Solutions to these issues are clean water access and availability, climate change, raw material scarcity and the spread of infectious diseases. These solutions will positively impact communities as well as the sustainable growth of the business. Global Communications, similar to Coca-Cola, need to thoroughly research and create stronger alliances in order to satisfy and develop multiple solutions to the telecommunications industry.

As with Coca-Cola, Global communications can also pattern their business decisions on those made by Cingular/AT&T. There was a huge merger between two established companies to offer more competition to the number one telecommunications company in the nation. Although financial difficulties were not at the root of this change for Cingular, both Global and Cingular did it for their customers. Thinking about customer satisfaction is one key element that will increase revenue for the companies because it will produce loyal customers and keep them coming back. Global had a breakdown in its communication efforts with its employees. This forced the Union to get involved for the job safety of the employees. Global did

...