Global Communication Benchmarking

Learning Team C: Global Communications Benchmarking

Global Communication Benchmarking is prepared as the Learning Team assignment in Week 5 of MBA-500 class. Learning Team C consists of three members: Nakia Walker, Tara Carlsrud and Lies Widaningsih. Each team member prepared synopsis of two different benchmarked companies, then all six different companies were discussed on how each company overcome similar problems that faced by Global Communication.

The aim of this benchmarking is to understand and identify problems or issues faced by each company, how they approach the issues and what is the outcome of the companies, so that Global Communication can find best solution for its problems. The companies that are benchmarked are Ford Motor, DaimlerChrysler, The United States Postal Service, AT&T Corporation, Sprint PCS, and Hewlett Packard. In this research, Team C selected four different market sectors, i.e. automobile, telecommunication, computer market, and delivery services, in order to have more possible and the best outcomes for GC issues and to find whether there are similarities or different approach perform by each company or each market sector.

There are similar issues found in most companies that also faced by GC such as: cost cutting program in regaining company's profit, employee separation program that expected to reduce cost, release or divest non profit sub businesses, restructure or remodel business processes in achieving company's goal, establish mission and vision statement that inspiring and encouraging, and expanding business both in the country or globally by alliance, merging or joint operations with other companies.

Benchmarking Discussion

After reviewing all six companies that are benchmarked, there are several similarities how each companies approach in solving problems that similarly faced by Global Communication. In regaining company's profit, cost cutting program was the first step taken as short term solution. There were several approaches implemented for cost cutting such as make more efficiency and effective on flow process, decrease number of employees, divest non core business or consolidate offices or standardization materials and process.

Some companies were successful in cutting cost and regain profit after implementing work process efficiency as results of benchmarking with successful companies or other business units within its companies e.g. Ford Motor, US Postal Service, DaimlerChrysler.

Based on AT&T and Sprint PCS experienced, employees lay off was not always the best solution in cost cutting program as it turned to make more devoted to employees who were staying. There might be a decrease in productivity among employees that could cause profits to diminish. "Higher Performance from employees leads to a higher performing company." Employee reduction program can be done by staging as implemented by DaimlerChrysler i.e. after identifying a long term manpower strategy; they offer retirement program, voluntary separation program, and other termination and attrition program.

Most companies have clear vision and mission statement that understandable and inspiring to all stakeholders in achieving their goals. Sprint PCS has clear mission: "To be number one in providing a simple, instant, enriching and productive customer experience." While Ford Motor has "Way Forward" plan in regaining their USA market and profits and 'Driven by Values" as their motto on annual report.

Focusing in core business, divesting non profit sub business, and consolidating offices were done by several companies benchmarked i.e. Ford Motor, Sprint, Daimler, had successfully reduce their operating costs. Restructuring or remodeling business model was helped several companies to be survived and grow their business.

Several companies implemented market surveys and market analysis followed by innovation, creativities and product enhancement in order to be survived and dominate the market in such tight competitiveness. Customer satisfaction is a key of company's success. Business expansion to other countries that make them to be global company was started by making alignment or joint operations or merge with other company that was established earlier in the respective country.

Global Communications Discussion

Competition, a lack of technologically advanced services, and an increasingly volatile situation with personnel had transformed Global Communications from a profitable member of the telecommunications industry to a company on the verge of financial disaster. In order to remain in business Global needed to immediately cut costs, develop a company with a specific product mix, and successfully combat the effects of lay offs on remaining employees. Realizing specific approaches allowed Global to overturn the company's negative direction and surpass their previous levels of accomplishment. Global was able to launch a foundation that offers them the opportunity to understand their vision; to extend their services into the world market.

To cut costs GC employed a strategy of temporary outsourcing to India and Ireland, which reduced employment costs by more than 40%. The company also produced immediate income by leasing available property previously allocated for call centers. Leasing the property instead of selling gave GC the option to reopen in existing locations in the future or to relocate if other places are found to be more profitable. Co-working with a satellite company to offer all encompassing services for home, small business, and mobile customers provided Global with the perfect product mix necessary to compete in an ever-evolving marketplace. Through strategic planning and the implementation of benchmarked techniques Global was able to achieve its goal of becoming a success in the worldwide market.

Conclusion

In conclusion, after conducting our research, as individuals we selected companies that identified several course concepts that correlated between the information gathered from our benchmarking companies and that of Global Communications. The execution of Global Communications helped with the research process allowing us to be able to compare decisions evident with in the viewed scenario. Although cutting costs and downsizing can be effective and sound business decisions; These constraints can pose difficult standards at times, there are families, communities and people who are affected, not just profits, stocks and losses. When making decisions of this sort, companies need to consider the ethical impact of their decisions they make regarding the strategic direction of the company.

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