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The problem with the telecommunication industry is that there is too much competition among local, long-distance, and international markets. They all are competing for the same business, but with different services and options. Cable companies have taken the lead by offering complete solutions that encompass computers, televisions, and plain old telephone service (POT). In addition, the impact of entering into the international market has yield mixed results in the industry.
Global Communication senior leadership team has developed a two-pronged aggressive approach to become more competitive with local telephone and cable company. First, the company plans to focus their new strategy on small business and consumer customers. The plan will increase the company's growth by offering new services in both the local and long-distance market across country. To facilitate this growth, Global will create alliances with a satellite provider to offer video and broadband services. Global will also partnership with a wireless provider to offer small business owners with internet access using wireless telephone or PC cards. Second, the team has identified cost-cutting measures that will improve profitability. The team plans to market Global on an international level with the goal of becoming a global resource with this aggressive approach.
Issue and Opportunity Identification
Global Communication and other telecommunication companies are under tremendous pressure due to the abundance of competition amongst local, long-distance, and international markets. In fact, Global stocks have dropped an alarming 50% over the past three years. In order to be competitive, Global has to update their current hardware and services to meet the demands of the market. If not, cable companies will continue to saturate the market by offering complete solutions that encompass computers, televisions, and plain old telephone service (POT). Global's primary focus in the local market has caused major financial pressures for the company to the point where the company's revenue and profits are impacted.
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Global senior leadership has an opportunity to establish new goals and values that will help the company cut cost and improve profits. The leadership has to focus on a niche, " that caters to a smaller segment of a large market with common needs " (Turner, 2006), to make Global more aggressive in both the local and international markets. Global can achieve this by benchmarking their products/services with that of the current market. Global also has an opportunity to expand their services to include video services, broadband services, and wireless internet, which will make them competitive with local telephone and cable companies. Establishing cross-cultural relationship with India and Ireland will give Global an opportunity to reduce unit cost of handling calls by nearly 40%. Global will have to lay-off and relocate employees in order to support their new strategy. Through this experience, Global will have the opportunity to ensure that all employees are treated fairly through the transition. The company can team up with a career counseling company to assist employees who are laid-off and offer incentives for those relocating. Finally, Global will have to meet with Union representatives to re-negotiate current teams under the new globalization and outsourcing plan.
Stakeholder Perspectives/Ethical Dilemmas
Global Communications has several stakeholders that have different interests in the company. The stakeholders are very instrumental to the organization because without their support the company's viability is seriously threatened. One of the primary stakeholders is the shareholders. Shareholder's interests are served by the management efficiency to achieve profits. Other stakeholders include: Employees whose interest are work satisfaction, pay, and benefits; Global Senior Leadership whose social responsibility is to ensure the company's new strategy does not conflict with the company's vision, deteriorate outside relationships, and that employees are treated with respect; Customers whose primary concern is quality, safety, and availability of goods and services; Communities whose concerns are the environment and quality of life surrounding their communities; and finally, Union Leadership whose responsibility is the best interest of the union members and the union itself.
Global Communications faces two major ethical dilemmas that must be addressed. First, the company has to be honest with employees about the new strategy and the impact it has on their job security. Failing to do so can affect the morale across the entire company. Second, Global has to work on their Union-Company relationship. The company has to decide if fighting the Union is worth the hassle or engaging into re-negotiation under the new strategy will better benefit the company as well as the stakeholders.
Global Communications End-State Vision is to become a global corporation within three years operating in local and international markets (India and Ireland). Our vision is to provide the best technical sophistication to our customers by offering state of the art call features, local and long-distance services, satellite video and broadband services, and wireless internet while decreasing cost by 40%. "Our edge is people" and we are committed to satisfying the realistic expectations of our employees, customers, and other stakeholders.
In order to become a global resource, Global Communication must first address the outstanding issues with the Union. The Union and Global must settle terms under the new strategy prior to implementing changes in the company. The ramifications of not settling will not only impact Global's end state goals, but the telecommunications industry as a whole. Second, Global must follow through on their commitment of maintaining and creating jobs. Loyal employees have been the backbone to Global's success. If the employees do not see a win for themselves in the new strategy, Global can risk losing loyal and experienced employees to the hands of the competitors. And lastly, since cross-cultural managing will be new grounds for Global, it is important that the company invest in cross-cultural training for their leaders and employees who will have to relocate abroad. Misinterpreting the cultural differences, values, and ethics of the host country can prove to be very costly and detrimental for Global.
In conclusion, Global Communications currently needs to address some very important issues in order to obtain its goal as a global resource and competitive telecommunication company. The senior leadership team has developed the roadmap to achieving the goals by focusing on growth through new services and identifying cost-cutting measures. The next step is to implement and resolve potential show-stoppers. Global Communications has the potential to overcome their existing issues by capitalizing on their opportunities while taking into consideration the interests of the stakeholders.
Ahlawat, S.S. & Ahlawat, S. (2006 Mar). Journal of American Academy of Business Cambridge, 8(1), 101-105. Retrieved September 29, 2005, from EBSCOhost database.
Imprey, L. (2006, Nov 2). Crops, 44-45. Retrieved September 29, 2005, from EBSCOhost database.
Morton, J.F. (2006 Oct). Labor Law Journal, 7(10), 603. Retrieved September 29, 2005, from EBSCOhost database.
Tzafrifi, S., Man-Negin, R., Harel, G.H., & Rom-Nagy, D. (2006, Mar). Career Development International, 11(2), 125-144. Retrieved September 29, 2006, from EBSCOhost database.
Turner, M.L. (2006 Mar). Black Enterprise, 36(7), 93-100. Retrieved September 29, 2006, from EBSCOhost database.
University of Phoenix (2004). Global Communications Hand-out. Retrieved September 27, 2006, from University of Phoenix, Week four, rEsource. MBA500-Foundations of Problem-Based Learning.
Issue and Opportunity Identification
Issue Opportunity Reference to Specific
(Include citation) Concept
Global Communications stock prices have dropped more than 50% over the past three years.
Global Communication's senior leadership can develop a new strategy that will cut cost and improve profitability.
"Establishing a niche business that caters to a smaller segment of a large market with common needs or purchasing habits" (Turner, 2006).
Global Communication's current services are outdated and non-competitive with the complete solutions provided by cable companies. Global Communication expands their services to include video services, broadband services, and wireless internet, which will make them competitive with local telephone and cable companies. "Benchmarking is the act of comparing yourself with others The idea behind benchmarking is that the process of comparison highlights the issues which need to be addressed, to improve business performance" (Imprey, 2006). Benchmarking
Global Communication currently operates in the local market, which limits their ability to provide more technical sophistication to their customers. Global Communication can enter into cross-cultural relationships with India and Ireland to reduce the cost of handling calls by 40%. "off-shore sourcing has become a significant corporate strategy since 1990s. it is the most recent management tool to emerge in response to demands for more efficient ways to address organizational competitiveness" (Ahlawat & Ahlawat, 2006). Global Sourcing
In order to become more efficient, Global Communication has to lay-off and relocating employers. Global Communication continues to uphold their people philosophy, "Our edge is people", by showing empathy and respect for employees. The company can offer career counseling for employees that are being laid-off and incentives for those who have to relocate. "Preparing individuals through participation in appropriate programs significantly promotes employees morale and reduces negative affective responses through consideration of the individual cost caused by the downsizing process" (Tzafrifi, Man-Negin, Harel, & Rom-Nay, 2006). Downsizing
The union feels that Global Communication undermined their relationship by not including them in the company's new strategy of globalization and outsourcing. Global Communication senior leadership and Union Representatives can re-negotiate current terms under the new globalization and outsourcing strategy. "Parties engaged in the process of collective bargaining must bargain in good faith about something concrete" (Morton, 2006). Collective Bargaining
The Interests, Rights, and
Values of Each Group
Shareholders Shareholders have the right by law to be told about any changes that may affect the company's value. Shareholders interests are served by the managerial efficiency to achieve profits.
Employees Global Communication has very loyal employees that have been with the company for a long time. It is only fair that Global's leadership extends the same courtesy to their employees by informing them on the changes prior to any media release. Employee's interests include work satisfaction, pay, and job satisfaction.
Global Communication Senior Leadership The leadership has the social responsibility to ensure that the new strategy does not conflict with the company's vision, deteriorate outside relationships, and that employees are treated with respect, regardless of their disposition.
Customers Global Communication owes their customers the best product or service that is possible. Customers are concerned with quality, safety, and availability of goods and services.
Community Global Communication has a social responsibility to consider the environment and quality life of surrounding communities.
Union Leadership The Union leadership is responsible for the best interest of the union members and the union itself.
End State Goals
Transform into a global corporation within three years.
Reduce and move some technical call centers to India and Ireland. In addition, cut unit cost for handling calls by 40%.
Provide small business owners with technical sophistication such as state-of-the-art call features, local and long-distance services, satellite video and broadband services, and wireless internet.
Commit to satisfying the realistic expectations of our employees, customers, and other stakeholders.