Global Communications

Global Communications

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Global Communications (GC) is facing many issues. Restructuring of the organization is required to offer services and cut costs. Global Communications can better compete locally and globally to increase revenue and profits.
One issue that Global Communications is facing is the depreciation of stock by more than 50 %. Stockholders do not have confidence in the success of the company. Global Communications is also facing a competitive marketplace where everyone in the industry is competing for the same business. Recent offerings of bundled package solutions by cable companies that included computers, television and telephone service have also impacted the company. Management has identified dug in deep and attempted to diagnose the true cause of the problem (Bateman and Snell, 2005, chapter 3). A recent decision by the management team to cut costs by significant lay offs of employees and decreasing the salaries of those that relocate by 10%. This decision has angered the Union who recently took a cut in health and education benefits. The Union understood that these costs would support the company’s long term growth. They now feel that they have been treated unethically and plan to take action against Global Communications. The Union is no longer willing to negotiate based on the new strategic plan.
Global Communications faces many issues and have many opportunities that will help to turn the company around. The senior team has put together a strategic plan that if effective, will transform the company into a global corporation within the next three years. The Global Communications Chief Executive Officer, Katrina Heinz has past experience in working for a global long distance provider and is focused on increasing both revenue and profits through more aggressive globalization. Entering and competing in local and global markets will help make the company more completive and increase the value of the stock. The Executive Vice President of Small Business and Marketing Sales, Nancy Everhardt will concentrate on growing the small business market by creating innovative packages of valuable solutions like video services and a satellite version of broadband and creating a partnership with a wireless provider for anytime internet service.
There is also the opportunity to increase sales by marketing new products and services both locally and globally which is the focus of Sy Rodriguez, Executive Vice President of Consumer Marketing and sales.
Due to the decision to outsource some of the call centers to India and Ireland reducing unit costs by nearly 40%, Joel Thompson, Executive Vice President of Human Resources and Public Relations will focus on creating severance packages and contracting with consultants at outplacement companies to assist those impacted by this decision.

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Communications will also need to be created for both those internal and external to the organization.
In addition to the impact on the employees, the Union is angry that they have agreed to the decision to cut both education and health benefits to assist the company with savings. Maria Antez, current Vice President in the Technologies Workers Union, serves as the liaison between Global Communications and the Union and will need to focus on reopening negotiations to create a Win-Win approach to better results for both parties. (Kreitner and Kinicki , 2004, chapter 14).
Key stakeholders at Global communications are shareholders, customers, management team, employees, and the union. All have an invested interest in the current situation and will be impacted by the decisions. Shareholders want to see a return on their investment, not a further drop in stock value. The customers want a selection of products for one stop shopping and good service at reasonable prices. Senior management is interested in creating a plan that will make the company successful in the next few years as well as being open, honest and sharing the strategy with the employees so that they will understand why the decisions are being made and that those that remain with the company will become strategic partners. If they do not, there will be morale issues and a drop in current productivity resulting in potential conflict for the company. “Certain situations produce more conflict than others. By knowing the antecedents of conflict, managers are better able to anticipate it and take steps to resolve it if it becomes dysfunctional,” (Kreitner and Kinicki , 2004, chapter 14). Employees want to keep their jobs and maintain their current salaries. The Union would like to maintain jobs and benefits without losing workers. They also want to be treated fairly and be a part of the decision making process. Everyone has a vested interest in what the company is facing, but Global Communication’s primary concern must focus on the survival of the company first.
Global Communications will successful become a world leader in the telecommunications industry offering new services, better cost savings and increased value for the companies stockholders. Specific goals that will assist with the measurement of this vision are:
Increase value of stock by 50% in next three years
40% reduction in unit costs due to outsourcing
Creation of innovative packages with video services, a satellite version of broadband
Global Communications is currently struggling to remain competitive in the marketplace, satisfy stockholders by increasing the stock value, provide outgoing employees with sufficient packages, offer incentives to remaining customers and build relations with the Union. The opportunities presented that include the creation of new products, and strategies to work with the employees and the Union, will assist Global Communications with becoming a leader in the Telecommunications industry and driving up the value of the stock. Stockholders will again become confident in the future of the company and new and existing employees and the Union will be strategic partners along with management.
Global Communications has identified both the issues and opportunities that are currently facing the company and developed a strategic plan to address them. Identification of the stakeholders that have an interest in the future of the company has provided them with a plan of action that will make Global Communications a strong force in the Telecommunications industry.

Bateman, S. & Snell, S. (2004). Management: The new competitive landscape. (6th ed) New York: The McGraw-Hill Companies
Kreitner, R. & Kinicki, A. (2004). Organizational Behavior. Managing Conflict and Negotiation. (6the ed) New York: The McGraw-Hill Companies
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