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Global Communications is finding itself a victim of modern day progress. Not being profitable creates problem and generates a huge downward spiral. Sales start to slow, creating less profit for the company. This in turn, creates doubt with investors. As a result, stock prices drop and ultimately, the future of the company is questioned. Global Communications is actively looking at solutions to this problem. By addressing this now, the company will have a very active future for employees and consumers.
Issue and Opportunity Identification
In recent years, technology has moved forward at an incredible speed. This has allowed many different players to compete with in the telecommunications industry. Not only are the typical companies fighting for the market, the cable companies have adapted and are cutting into the market as well. Global Communications determined that this type of competition has depreciated stock prices and has made the company investigate different methods to increase profitability. Global Communications must alter its business model to allow for modern growth. Shipping jobs overseas would help alleviate some of the financial pressures that the company is facing at the moment. At the same time, they must find a way to create more revenue. With some help, Global Communications can tap into the small business and consumer market, ultimately expanding world wide.
Stakeholder Perspectives/Ethical Dilemmas
There are several different stakeholders that are affected by the current problems facing Global Communications. The Board, stock holders, senior management team, and the Union are the main groups involved with the current situation.
The Board and senior management team are trying to move the company into a better position for the future. By making the tough business decisions now, the future of the company can be secured. This brighter future will be able to support the jobs that are available now plus create many more.
The Union is trying to represent the employees in a seemingly losing
situation. The Union has been kept in the dark concerning the decisions of the senior management team. In previous negotiations, they have given up certain benefits to create an atmosphere of give and take. At this point, they feel that they have been taken advantage of by not being included in the current company decisions.
Global Communications has become a world leader in the telecommunications industry.
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Global Communications is facing an uphill battle concerning the forward progress of the company. The company understands that the employees are what make the company. Shipping jobs overseas has created a rift between management and employees. However, the Union must be able to see that this decision is a necessary move for the good of the company. None the less, the relationship between the two groups must be repaired before the company can move on as a whole. The senior management team must look at the Union as a partner and should include them in the decision making process. This would create a better working relationship and make for better dealings at later times.
Global Communications is trying to take a huge step forward by tapping into different markets. Relying on alliances with other satellite and wireless companies can create other issues entirely. At this point, their international plans are just in theory. They must fully commit to embracing foreign cultures, rules, and regulations in order to gain a foothold in the international market.
Creating new business is the future for the company. Global Communications will need to find the small business, consumer, and international markets to generate what is needed to push the company to the next level. This major change will hinge on the employees of the company. The Union will play a part in helping the progress of the employees with the changes being made.
Kreitner, Robert, & Kinicki, Angelo (2004) Organizational Behavior: Managing Conflict and Negotiation. New York. The McGraw-Hill Companies
Issue and Opportunity Identification
Issue Opportunity Reference to Specific
(Include citation) Concept
The board of Global Communications determined that steps must be taken to improve profitability. Outsourcing their call centers has become a focus for cutting these costs. By avoiding contact with the Union, The Board has put the company in an awkward position. The company maintains that the "competitive edge comes from loyal employees," Global Communications is now going to look like a big business hypocrite. Global Communications must find a way to move some of their technical call centers to India and Ireland while maintaining a successful relationship with all of the key stakeholders, including the Union Avoiding is a tactic "that may involve either passive withdrawal from the problem or active suppression of the issue. Avoidance is appropriate for trivial issues or when the costs of confrontation outweigh the benefits of resolving the conflict It is inappropriate for difficult and worsening problems. The main strength of this style is that it buys time in unfolding or ambiguous situations. The primary weakness is that the tactic provides a temporary fix that sidesteps the underlying problem."
(Kinicki & Kreitner, 2003, p. 504) Dysfunctional Conflict.
Global Communications increasingly lost market share over the last couple of years, stating the cause being market saturation of the product. To compete, Global Communications has formed alliances with a satellite and wireless provider. These kinds of alliances will allow the company to compete with the cable companies and help them penetrate small business and consumer markets. Global Communications needs to develop a plan to introduce new services to the small business and consumer sectors by partnering with satellite and wireless providers to increase market share. Integrative negotiation calls for a progressive win-win strategy.
(Kinicki & Kreitner, 2003, p. 505) Integrative negotiation
The Interests, Rights, and
Values of Each Group
Investors Investors are interested in how the company is performing financially. They hold the board accountable for the company's progress.
Union The Union is the watchdog for workers rights. The group is concerned with what is fair for the worker.
The President and Board The Board must make decisions that are in the best interest of the company and at the same time try to keep everyone else happy.
Employees Employees have the responsibility for day to day operations in the company.
Customers Customers are interested in a good product that is usable, convenient and cost effective.
Senior Leadership Team This group is responsible for making the decisions that will lead Global Communications into the future.
End State Goals
Global Communications will maintain good relationships with current employees and the Union while creating a worldwide work force.
Global Communications will expand globally and regain market share.
Global Communications will improve profitability and increase stock price.