Problem Solution: Global Communications

Running head: PROBLEM SOLUTION: Global Communications

Problem Solution: Global Communications

Bryan

University of Phoenix

PROBLEM SOLUTION: Global Communications

The challenges faced by Global Communications are based around management, stakeholders, and an expansion into new technologies. In order to stay competitive Global Communications will find it necessary to implement a new business strategy which will include; becoming a truly global company, creating alliances and partnerships with satellite and wireless-providers, a change in the company's set of values, and outsourcing its technical call centers. The outsourcing of the small business call centers will be providing the greatest challenges for Global Communications because of recently negotiated contracts with the Technologies Workers Union.

Global Communications must make immediate changes to become more competitive at the local level as well as on a global scale. In order for Global Communications to become more competitive, alliances will be created, expansion will be made into new markets, and many positions will be eliminated while others are created. If Global's plan is not properly communicated to all stakeholders the chance of success will minimal. The attached tables will provide a further understanding of the material about to be presented.

Situation Background (Step 1)

Situation

Global Communications competes in an industry known for rapid changing technologies and competitive pressures. The competitive pressures have been so immense that over the past three years, Global Communications' stock has decreased in value by over 60%. The decrease in the value of the stock and the increase in pressure from cable companies and other competitors have caused the stock holders to exert pressure on the leadership of Global Communication to become more competitive.

Global has created a three year plan that if executed properly will allow Global Communications to become a leader in the telecommunications industry. In order for Global Communications to become a leader it needs to provide products and services that its competition can not; global will need to become an all in one service provider much like the cable industry but without any boundaries.

Global Communication is able to break the boundaries and exceed the capabilities of cable through the alliances it has formed with a satellite and wireless-provider. The newly created alliances will give Global Communications the technological advantage necessary to become a strong competitor.

The first step of Global's new plan is to provide new services to existing Global Communications customers, both individual consumers and small business, and serve them in both local and long distance markets throughout the country. The introduction of new services may help Global Communications existing customers realize the company's potential for growth.

The second part of the new plan is for Global to globalize and to move into the global communications market. The first step of the globalization process is to outsource Global's small business technical call centers offshore. During the process of moving the call centers offshore Global will also have to downsize its domestic call centers.

Issue Identification

Many challenges have developed during the construction of Global Communications' aggressive plan onto move forward onto become a leader in the telecommunication market. Over the past three years Global Communication's stock has decreased in value by over 60%, do in part to the economic pressure created by the excess competition in the telecommunications industry. Because of the competition in the telecommunications industry, Global has found it necessary to aggressively increase marketing while decreasing operational costs at the same time. The decrees in operational costs will implemented through the offshore outsourcing Global's technical call centers. Although the board of directors is pleased with the plan to outsource the technical call centers, the union is upset because of the loss of jobs and the surrendering of benefits at the last set of contract negotiations.

Although the closing of the small business technical call centers will cause layoffs, many employees will be able to stay with Global by taking a substantial reduction in pay by moving into a consumer technical call centers or into sales. The layoffs caused by outsourcing raises another issue with regard to the company's reputation. Global Communications has always held the philosophy that, "Our Edge is People", and with the planned pay-cuts and layoffs Global Communications will be violating the very premise that it has built it business reputation upon.

With Global's downsizing corporate moral will wane causing a retention problem with the very employees it wishes to keep. The retention problem will be caused by a combination of pay cuts and the potential recruitment by other companies. Beside an employee retention problem, Global Communications will also have to also deal with the Technologies Workers Union. The union feels they are being wronged and suggests it may take legal actions against Global Communications.

The primary concerns for Global Communications are to reduce operational costs through offshore outsourcing of the small business technical call centers at the same time retaining desirable employees, maintain a working relationship with the Technologies Workers Union and ultimately increase profits. The aforementioned issues are detrimental in order for Global Communications to remain competitive in the marketplace.

Opportunity Identification

Along with the many challenges involved in the execution of Global's plans, there are also a number of opportunities that can make this venture very successful:

New services and better technology such as the offering of video services as well as a satellite version of broadband which is in addition to a portable/wireless will make the current customers of Global Communications realize that change is coming and not switch providers. The new services will be ushered in with an increased technical sophistication which will include video services as well as a satellite version of broadband in addition to a portable/wireless internet. The satellite connections and wireless internet options will help offset competition with cable companies

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