Problem Solution: Global Communications

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Problem Solution: Global Communications Global Communications (GC) is a telecommunication company under tremendous economic pressure just like other telecommunication companies. Its stock value has diminished drastically at over 50% which creats doubt in the stockholdersand thefuture of the company is being questioned. GC decided to take an aggressive approach to solve this problem by outsourcing some of their technical call centers department to Ireland and India, without communicating it first to the union This will cause a lay-off of employees and cut salaries by 10% for those relocating. Of course this plan will not go well with the employees and the union who just gave up major benefits in the recent negotiation, are threatening to take legal action against GCs' new strategy. This paper will discuss the alternative solutions to GCs' problems, risk assessments for suggested alternative solutions, and the implementation plans to deal with the problems. Situation Analysis Issue and Opportunity Identification There was too much competition in the Telecommunication industry. Local, long-distance and international markets are all competing for the same business. The company suffered a great deal at the hands of the cable companies, who stepped in to provide complete solutions incorporating computers, television, and plain old telephone services. Stockholders are experiencing diminishing returns and have doubts if GC will be able to recover. Their customers are demanding more technical sophistication from their sales people. GC plans to cut cost and outsource their technical call centers to india and ireland. Outsourcing will save the company money and make them more competitive because of their international status.This in turnwill make them meet their goal of globalization . but have a gap in communication with the union.which makes the situation complex. Stakeholder Perspectives/Ethical Dilemmas Global Communications' management infringed on the rights of their technology workers union by not involving the union in the decision making process, and the union is now threatening to take legal actions against Global Communications. Global Communications also faces another dilemma based on their decision to outsource. GC has always been known caring for her employees, and placing a great value on them also. However by carrying out their outsourcing strategy, employee's morale will at an all-time low because both the union workers and the company's employees now face either job losses or a salary cut. Global communications seems to have stepped on too many toes, hence there is bound to be conflict. There is conflict between the union workers and the leadership team, and there is also conflict between her employees and the leadership team too.

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