Global Communications

Running head: SITUATION ANALYSIS AND PROBLEM STATEMENT: GLOBAL COMMUNICATIONS CORPORATION

Situation Analysis and Problem Statement: Global Communications Corporation

Sarah Brown

University of Phoenix

Situation Analysis and Problem Statement

In business, companies are always competing with each other to remain the leader in the industry. Companies want to have a competitive edge over others in the business. Global Communications is at point, where they need to make some changes to their organizational structure to remain competitive in the market. The new approach of Global Communications will bring astonishing opportunity for growth in the industry however ethical dilemmas and issues will arise when the company implements the new plans. This paper will evaluate the issues and opportunities facing Global Communications in their goal to become a global leader in the industry. First a look at the situation Global Communications is facing to better understand opportunities and issues.

Situation Background (Step 1)

Global Communications is a telecommunications company that is faced with increasing competition and decreasing profits. The company has faced depreciation in stock value, with the price per share dropping 50% in three years. Shareholders are becoming increasingly upset and want to rebound and remain competitor in the industry. Global Communications has devised plan to introduce new services to their customers by creating an alliance with a satellite provider as well as applying practices that will increase profitability and cut costs. By implementing this new plan Global Communications faces several challenges.

Issue Identification

The first issue that Global Communications faces is in their move to become a global leader in the industry is the need to outsource to India and Ireland. To do this, Global Communications needs to layoff several employees and many of those who remain will most likely be relocated with a 10% salary cut. The impact of several coworkers and friends losing their jobs will affect the moral of the remaining employees. Global Communications is faced with the challenge of maintaining the trust and loyalty of their employees to realize their new growth goals.

The second issue that Global Communications faces is the issue with the Union. The Union is upset because they feel that this is a ploy by Global Communications to manipulate a recent contract. The president of the Union, Andre Mustov, informed Global Communications that action would be taken against them through all necessary resources. Global Communications is facing a law suit that will bring potentially damaging media attention at a time when they are trying to earn the trust of the global market.

The third issue Global Communications faces is the reputation of the company with their employees, customers, and the local community. Global Communications was known to have a competitive edge because of their loyal employees. The implementation of letting several employees go to outsource their jobs to Ireland and India.

The fourth issue that Global Communications faces is the issue with Maria Antez, the Union liaison. Maria was not informed of the new company strategy, and when news of it leaked out before Global Communications had a chance to break it, Maria looked foolish in the eyes of the Union. They were unhappy with the results of her recent negotiations and giving up over 20% of education and health benefits. Maria convinced them that this was a necessary step in the long- term growth plan of the company, and it would give the Union more members while benefiting the current ones. Now they want to outsource jobs to India and Ireland. This goes against everything Maria told the Union, and now she looks like a fool. The Union lost their trust in Maria.

The fifth issue that Global Communications faces is unhappy shareholders because of the decreasing value of stock. Over the last three years, the value of stock as decreased 50%. Global Communications is part of a diminishing telecommunications industry and shareholders are losing faith in the company's ability to rebound after the recent economic pressures. Global Communications needs to maintain trust with there shareholders and make them believe that this is what is best for the company.

Opportunity Identification

The first opportunity for Global Communications comes from being able to cut labor cost by nearly 40% and increase profitability. By outsourcing to Ireland and India, Global Communications is reducing labor cost and increasing profitability while gaining an advantage in the global market. They want to become a global leader in the industry, and what better way to start their reputation in the global market. Global Communications outsourcing to other countries will help build trust in their new market.

The second opportunity for Global Communications is to realize growth through the introduction of new services. Global Communications teamed up with a satellite service to provide video services and broadband, and a wireless partner for internet access anywhere. This complete solutions package is comparable to those offered by their competition. This partnership will allow Global Communications to compete with the telephone and cable companies and could be very profitable for the shareholders.

The third opportunity for Global Communications is to increase the technical sophistication and expertise of the technicians by having call centers in India and Ireland. Not only will this provide Global Communications with experts in the field assisting their customers it will also reduce labor cost for the company. Small business owners were interested in having the expertise of the technicians from overseas.

The fourth opportunity for Global Communications is an overall increase in profits. This will occur from globalization and the decrease in labor cost by outsourcing to India and Ireland. Profits will also increase with the layoff of several employees, and the 10% salary cut implemented for remaining employees. By marketing aggressively on the international level their new products and services, Global Communications should become a leader in the global market which will increase profitability.

The fifth opportunity will come when Global Communications is able to increase employee benefits because of the increase in profitability. Global Communications will want to ensure the happiness of their

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