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Task A: Problem/Opportunity Statement
Instructions for Task A: In the Response row, write out the problem/opportunity statements for the scenario for each of the team members.
Response to Task A:
Global Communications can find a way to increase stockholder value, cut costs and improve profitability by making appropriate organizational adjustments
To continue to be an industry leader, Global Communications needs to develop a new strategic plan focusing on all persons who have a stake in the corporation, including shareholders and employees.
Global Communications can enter into the partnership with the satellite company, expand into the global market, and increase profit while retaining employees
Global Communications will aggressively implement plans for growth, international exposure and technologically advanced services and products. Global Communications will be poised to become an industry leader.
Global Communications must find a way to increase profitability through innovations to remain vital while staying true to the stakeholders and employees
Global Telecommunication can find a way to increase productivity and economic stability by making appropriate company technology adjustments that will decrease layoff possibilities and increase benefits for employees.
Generic Benchmarking—The purpose of generic benchmarking is to identify potential solutions to the problem statements defined in Task A. You will do this by looking at how companies in other industries have dealt with similar issues.
Task B1: Generic Benchmarking: Topics
Instructions for Task B1: In the Response row, identify the topics for which you need information in order to identify potential solutions to the problems identified in Task A.
In the Response row, list three to five topics that you will research in peer-reviewed journals, on Web sites, and in popular publications such as magazines and newspapers.
In the Response row, provide a justification for each topic.
Response to Task B1:
Topic 1: Consumer Confidence
Understanding what the consumer wants is a critical skill that is necessary to differentiate
Outstanding companies from mainstreamed companies. Some of the challenges has encountered in the market is that the market is “Too Competitive”. They are finding that many services that were once provide by telecommunication companies are now being provided by other company like Cable. The companies that are making stability so hard for Global Communication are cable companies. These companies are not only specializing in cable but are starting to provide other services that provided complete solutions dealing with computers, televisions, and telephone service which permits them to enter a larger market with these advancements in technology. In Global Communication wants to gain compatibility with these companies global communication has to make advancements in its technology.
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Topic 2: Decreasing company cost/ increasing company productivity
Global communication plans to decrease company cost by decreasing the amount of call center in America and establishing call centers in India and Ireland. According to the Global Communication Scenario by establishing the call centers in India and Ireland they are able to reduce unit cost for handling calls by nearly 40%. By downsizing the domestic call centers telecommunication is use money that was used on call center to make more advancements in technology, which will provide consumers with many new service. Global communication has to find a strategy that is able to make employees view layoffs as an opportunity instead of a problem. Although some call center reps will be transferred to new location overseas many call center employees will be laid off. Those who are being relocated are going to have to take a 10% salary cut, global communication plans to off set the salary cut by offering a 15% retention bonus the first few years and when business grows global communication can focus on salary increases over the next couple of years.
Topic3: Protecting Intellectual Property Locally/Internationally
While global communication is cutting cost by establishing overseas call centers it is very important that they are able to protect what they have in telecommunication. It is important to realize that all companies have their best interest in mind and it is important that all companies are able to keep leadership in product that they specialize in. By protecting a companies property it is a sure way to share ideas and technology but also able to ensure and protect company survival.
Topic4: Cross Cultural Entry Strategies, Negotiation, and Joint Ventures
It is imperative that Global communication when conducting international entry strategies, negotiation, and joint venture that they understand cultural aspects and values. It is important that international and American companies do not view the partnership as “master and Servant’ but as win/win relationship. By Global Communication interest in establishing overseas call centers it should not be looked at as cheap labor but as international expansion and cooperation.
Topic5: Technology Transfer
Intellectual property includes patents, trademarks, copyrights, and trade secrets. These items must be protected by businesses, and any release, transfer, or sale of these must include the careful consideration of a potential exploitation of these secrets and a subsequent and possibly severe loss of revenue. Global communication has the opportunity to have advancements in telecommunication, provide consumers with telecommunication advancements, regain leadership in telecommunication, and enter into new markets by establishing call centers in India and Ireland. If Global Communication determines the need to transfer that technology to others, it must take measures that would help ensure the information and processes are protected from release to unauthorized people or entities, or at least minimize the risk of the potential inappropriate or illegal use of its technology.
Topic6: Strategic partnership
Global Communication feel that partnership is a sure way to make advancements in telecommunication and enables them to accomplish steps that they would not be able to accomplish in a waning market. Global communication can make much advancement in telecommunication by partnering with satellite and wireless providers that will enable them to offer services such as video services as well as satellite version broadband. This will allow businesses and consumers with 24-hour access to Internet using telephones or PC cards. This is beneficial to business because they are able to take their work home and able to access their accounts at anytime which will increase financial stability.
Task B2: Generic Benchmarking: Companies
Instructions for Task B2: In the Response row, identify companies that have faced and addressed similar situations (successfully and unsuccessfully).
In the Response row, list two to three companies for each topic identified in Task B1.
In the Response row, identify those that have been successful and those that have been unsuccessful.
In the Response row, summarize your key findings for each company as they relate to the scenario.
Response to Task B2:
Business Outsourcing: Custom Direct, Inc. – Successful. Worried about U.S. based employee frustration over language barrier. Company has gained market share and earnings are growing briskly. Decided instead of moving elsewhere, invested in software for improving customer satisfaction. Issues moving abroad included language barrier, 8-hour work days, skill-set of foreign employees.
Xansa – Successful.
In 1997, a UK outsourcing provider, FI Group later named Xansa, became one of the first companies to outsource to India drawn by a 10-year tax free period. Even though the time is drawing closer when the company will have to pay taxes, plans are being made to increase personnel. The parent company will be operating out of India within the next three years, which will take the taxes paid from 48% down to 35%as the company will have one hundred percent parental control in India.
Global Communication can learn from Xansa in researching tax breaks offered by competing countries. Outsourcing the call centers to India can create a lower tax burden which will cut costs and could be used to re-educate current employees so they may be transferred to other departments. (Mankelow, 2005, p8)
Hewlett Packard – Successful. After a mixed beginning, different strategies were
researched and evaluated to provide the best alternative of control over the supply
chain necessary for outsourcing. A division was created to manage and set-up the
supply chain making for a centralized approach. (Verstraete, 2004, p21)
Global Communication can learn from HP that research and evaluation of different
alternatives is necessary to implement the best alternative in the achievement of
Globalization: General Motors – Mixed Success. Problem with globalization centered on employees. Technically skilled did not mix culturally. Expatriate Assignments have had a mixed bag of successes and failures (employees leaving the U.S., working abroad). Overall, GM track record has not been overly successful. Big mistake was truck segment being two-door vehicles in China, Chinese prefer four door vehicles.
Honda – Successful. Started by using joint venture policy with North America in the 1980s which developed into a beneficial relationship with suppliers. Using the parent company as watchword for long-term commitment it also suggests trust and anticipated growth. (Liker,p108, 2005) Honda shares information with partners selectively and with only core members participating in meetings. (Liker, p112, 2005)
Union Conflicts: Wal Mart – Highly Successful. Stayed away from Unionization.
Most employees understand that Unionization would destroy the company. Attempts
have been total disaster. Management’s scare tactics of unionization have done fairly
well in communicating the ending effects it would have on the business.
Task B3: Generic Benchmarking: References
Instructions for Task B3: In the Response column, list each reference using APA format.
Response to Task B3:
Roberts, K., Kossek, E. & Ozeki, C. (1998). Managing the global workforce: challenges
and strategies. The Academy of Management Executive, 12(4), 93-110. Retrieved
August 28, 2005 from InfoTrac OneFile database.
Mankelow,N. 2005 Xansa keeps faith in India despite loss of tax breaks.
Finance Week; 7/13/2005,p8(1). Retrieved from EBSCOhost August 28,2005
Verstraete,C., (2004) Manufacturing outsourcing--CAN YOU GET IT RIGHT?
Manufacturing Engineer; Aug/Sep2004, Vol. 83 Issue 4, p20-
23, Retrieved from EBSCOhost August 28,2005
Featherstone, L. (2005). Wal-Mart: rise of the Goliath. Multinational Monitor, 26(2), 28-
31. Retrieved August 28, 2005 from InfoTrac OneFile database.
Atkinson, B. (2004, April 13). Joppa, Md.-Based Bank Check Maker Backs Away from
Outsourcing Jobs. The Baltimore Sun,pp. B1, B4.
Liker,J., Choi,T.,(2004) Building Deep Supplier Relationships.
Harvard Business Review, Dec2004, Vol. 82 Issue 12, p104 -
113, 10p, Retrieved from EBSCOhost August 28,2005