Business Situation Analysis

Business Situation Analysis

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Situation Analysis
Issue and Opportunity Identification
Global Communications is currently looking to expand to a global market within three years. In order to be competitive they will need to look at adding services and customer solutions. Basically, Global Communications wants to capture a share of the international telecommunications market. The opportunity is there for Global to meet this vision. In order to do so, Global will have to make changes in their ways of doing business. Prior to looking in the global market, Global Communications will have to deal with the local competition.
Instead of relying on a simple communications package for their local subscribers, Global has entered into agreements with a satellite provider and a wireless provider. These agreements provide Global with the opportunity to not only keep customers, but go out and attract new ones. Looking at this opportunity is a two-fold approach: residential and business. By creating multi-service telecommunication solutions Global can effectively compete at the local level and start to look around the world in a global sense of service.
Global Communications is also faced with cutting costs and increasing their presence in the global marketplace. This situation has created concerns among Union officials and employees alike. Union employees have already sacrificed in order to help Global Communications reduce costs. By accepting a 20% reduction in their education and health benefits they feel that they have been more than fair in helping the team as a whole. Global has every right to be concerned about keeping the Union happy, but needs to be creative in how they will handle the situation with remaining employees.
Global Communications is looking at a 10% reduction in employee pay and a proposed 15% employee retention bonus to help alleviate the blow to paychecks. Management has also considered informing all employees (as well as the Union) of their intentions to prevent the rumor mill and possible bad press from driving morale and productivity lower than it is anticipated. The belief that "if the company prospers then so do the employees" can work; but only if the employees buy in and are part of the reward process, not just the shareholders. The opportunity is here to generate enthusiasm and motivation as long as Global uses employee incentives, keeps the workplace enjoyable, and the Union is supportive.
The estimated 40% cost savings (per unit/call) from having the call centers relocated to Ireland and Italy is an attractive cost cutting measure.

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This is compounded by the establishment of a presence of sorts internationally. CEO Katrina Heinz brought international experience to Global Communications. Her background will allow Global to transition from a local telephone service provider to an international communications solutions provider.

Stakeholder Perspectives/Ethical Dilemmas
Shareholders are the financial building blocks for almost any company. The interest generated in a stock can drive the price up or down and thus make it a profitable venture something to avoid. Shareholders will not invest in a business that is faltering or in a downward spiral. When a company looks promising then investors are interested and share prices climb. It is a delicate situation and ethical decisions are heavily scrutinized by the media. Negative press can mean the beginning of the end for even the most profitable stock.
Customers are concerned with the quality of service they receive, the prices they pay, and the integrity of their service providers. In a competitive marketplace, customer loyalty is becoming something of a rarity. Lower prices, more options, and knowledgeable customer service representatives are an attractive lure to clients.
Community involvement extends far beyond a few donations to local charities. Jobs created by companies means more money can be spent in local businesses. The social responsibility of businesses is expected now more than ever. In the text, Organizational Behavior 6e, Krietner and Kinicki tie this in to the Buddhist religion defining social responsibility as the "[c]oncern that the employer be a responsible part of society" (p. 129).
However good management will look close first then a far. Herb Kelleher, former CEO of Southwest Airlines said:
"Who comes first? The employees, customers, or shareholders? That's never been an issue to me. The employees come first. If they're happy, satisfied, dedicated, and energetic, they'll take real good care of the customers. When the customers are happy, they come back. And that makes the shareholders happy." (Kreitner & Kinicki, p. 86, 2004)

End-State Vision
Global Communications is faced with keeping shareholders, customers, employees, and the communities happy while expanding operations into the international market – all while increasing profits. Global might consider adopting the End-State Vision: "Global Communications will embrace new technologies and employee practices to become an international communications solutions provider."
With every vision is a goal. Global Communications entrance into the international market brings three End-State Goals into practice.
1. Provide customers with competitive rates and several communication package options.
2. Develop and implement international marketing plans.
3. Resolve employee job and pay concerns.
If Global can achieve these three goals then they will realize their vision.

Gap Analysis
Global Communications has their work cut out for them in order to achieve their vision. By looking at the End-State Goals versus where they are now they will be able to move closer to that success. In order to "Provide customers with competitive rates and several communication package options" Global is going to have to expand their current operations. The partnership with satellite and wireless providers is the first step in this process.
Global Communications will also have to look at their presence in the international markets. The goal, "Develop and implement international marketing plans," is a good one to measure by authoring detailed marketing plans and bringing them to life. This in itself can place Global in the international limelight.
Lastly, without happy employees your customers might take their business elsewhere and in turn keep investors from purchasing stocks. In order to "Resolve employee job and pay concerns" Global is going to have to sit down with the Union and iron out concerns at home. Once established overseas Global will need to make sure they keep pay and benefits not only equitable, but ethical.

References
Kreitner, R., & Kinicki, A. (2004). Organizational behavior Sixth Edition. New York: The McGraw-Hill Companies.
McShane, S. L., & Von Glinow, M. (2004). Organizational behavior: Emerging realities for the workplace. New York: The McGraw-Hill Companies.


Table 1
Issue and Opportunity Identification
Issue Opportunity Reference to Specific
Course Concept
(Include citation) Concept
There is too much competition in the local telecommunications market. With companies offering complete packages of communication solutions, Global Communications has fallen behind. GC has identified the necessity of package deals and has entered agreements with a satellite provider and a wireless provider. Global will be able to compete within the local markets by offering competitive package deals. "Partnerships are key to the new world strategies of the 21st century,"
says a Cisco senior vice-president. "Partners collapse time because they
allow you to take on more things and bring them together quicker."57
(McShane & Von Glinow, 2004, p. 463). Network Structures
Labor issues have become a problem with GC. Union officials are not happy with recent developments and talk of layoffs and outsourcing to foreign countries. Global will have to work with remaining employees and Union officials to solidify acceptable contracts. "This is a give-and-take approach involving moderate concern for
both self and others. Compromise is appropriate when parties have opposite goals or
possess equal power. (Kinicki & Kreitner, 2004, p. 500).
Compromise
Global Communications has not been able to establish a foothold in the international market. The addition of CEO Katrina Heinz from a European global long-distance company was a move to center GC on a truly global approach. Moving call centers to Italy and Ireland will also further that cause. Katrina Heinz' experience in the global LD market provides Global with a solid starting point for global expansion. "This sort of opportunity in today's global
economy challenges virtually all employees to become more internationally aware and
cross-culturally adept. The path to the top typically winds through one or more foreign
assignments today."
(Kinicki & Kreitner, 2004, p. 114). Culture and Organizational Behavior



Table 2
Stakeholder Perspectives
Stakeholder Perspectives

Stakeholder Groups
The Interests, Rights, and
Values of Each Group

Shareholders Maximizing profit per share, Accountability, Integrity
Employees Employment, Fair Pay, Honesty
Customers Quality Service, Service Options, Value, Customer Bill of Rights, Integrity
Local Communities Keeping jobs in the community, Social Responsibility



Table 3
End State Goals
End-State Goals
Provide customers with competitive rates and several communications package options.
Develop and implement international marketing plans.
Resolve employee job and pay concerns.
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