Global Communications Benchmarking

Global Communications Benchmarking

Team A

Jill Alesia, Dawn Becker, Daren Hughes, Dee Quattllebaum, Jennifer Williamson

University of Phoenix

MBA500

Sandra Payne

April 23, 2007

Global Communications Benchmarking

For the purpose of this paper, Team A conducted generic benchmarking in order to identify solutions to issues faced by Global Communications. Federal Express (FedEx), Hewlett Packard (HP), United Airlines, Klee Corporation, United Parcel Services (UPS), International Business Machines (IBM), AT&T, Cingular, Starbucks, and McDonalds were chosen as they have been in business for several years, and have overcome several encountered obstacles similar to those of Global Communications. Compromising issues within these companies were identified and compared. After an in-depth analysis of their resolution strategy, it was noteworthy to document the process management underwent to safeguard the organization and prevent vulnerability.

Benchmarking Company: Federal Express

Since FedEx's inception in 1971, the company's success has been based on its unique delivery service, innovation, willingness to take risks, and to a larger extent, the focus on its people. FedEx has become one of the most successful company's due to its people-oriented culture and its outcome-oriented management. The organization works hard to inspire and motivate their employees through reward programs. They acknowledge the fact that the employee is an essential ingredient and key resource to business success; as once was the message at Global Communications. Companies like FedEx are successful because they empower their employees to make decisions on behalf of the company with the goal of satisfying customer needs. Emotional intelligence is an important factor to FedEx. The company believes that continuous learning is an obligation owed to their employees. The environment encourages learning and candidates are hired based on their apparent desire to learn and grow. According to FedEx, happy employees behave more professionally and are also more motivated. "A motivated and dedicated workforce makes an enormous contribution to the bottom line of any business. The key to finding and maintaining a staff requires clear communications and a leadership style that relates to each individual" (Federal Express, 2007). FedEx has a supporting infrastructure and allows many of its employees to work from the comfort of their home through smart terminals. Smart terminals are integrated service digital network (ISDN) lines which are installed in the home of the employee equipping them with state of the art communication technology.

According to FedEx, effective internal communication can be identified as the central nervous system throughout the corporation. When communication is not effective, not only will there be great confusion within the organization, but productivity will decline as a result (when communication is effective, a message is sent, then received and a response is generated). Proper communication goes hand in hand with respect, credibility, openness, and trust. These are the ingredients that build relationships of integrity between employees and management, and are then passed on to the customers.

In the past, Global Communications also declared their loyalty to employees. It appears as though they lost sight of this key resource of a successful business. Not only did Global Communications fail to use an effective proper communication medium, they failed to include the main stakeholders in the company, thus causing dysfunctional conflict. Global Communications must innovate their communication process, creating a process that focuses on the employee, and views them as a key factor to success.

Benchmarking Company: Hewlett Packard

Hewlett Packard (HP) is a lead provider of products, technologies, solutions, and services to both consumers and businesses. Founded in 1939, HP was incorporated on August 18, 1947, and went public in 1957. The company's main driving force was its employees. Their management style was participative, while largely promoting individual freedom. Employees were expected to contribute to the success of the company in their own way. Hewlett Packard's strategy was enabled by its decentralized organizational structure. HP avoided any type of business contracts because of its commitment to its employees. Hewlett Packard's motto was to hire skilled workers with the desire to grow and with the expectations that they had a job forever. A 1979 employee survey gave the company high ratings for satisfaction, loyalty, fairness, equality, salary, and benefits. Accordingly, 93% of the employees recommended HP as the top company to seek employment. However, the turmoil of the 1980's challenged HP's business structure and organization. The 1980's brought rapid innovation in information technology, new business start-ups, declining prices, global competition, and light outsourcing causing the company to lose pace within its own industry. This in turn caused the stock price to languish and the employee's profit sharing to decline. To combat the changes of the 1980's, Hewlett Packard's main objective was to reduce IT costs, increase revenue, and gain a competitive advantage while attempting to improve business performance. HP's dilemma is basically a mirrored image of Global Communications (GC). The two companies shared a similar desire to reduce costs, increase profits, and improve business through increased services. The difference being that GC intended to pursue their goals through outsourcing call centers to India and Ireland, while HP achieved their goals without jeopardizing their commitment to employees.

Benchmarking Company: United Airlines

In our scenario, Global Communications needed to try to cut labor costs in order to globalize and survive in a highly competitive business. The airline industry is also a highly competitive business and some airlines have found themselves in a position where they have had to make large cuts in labor costs. United Airlines also found themselves in financial trouble. The difference between Global and United, was apparent in the fact that Global needed to expand into new markets, while United needed to cut costs to avoid bankruptcy.

In order to resolve the problem, they recalled retired CEO, Jack Creighton, to help save the troubled airline. Jack

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