Situation Analysis And Problem Statement - Global Communications

Situation Analysis and Problem Statement: Global Communications

Increasing competition and rapid changes in the business world have made organizations re-think about their strengths and core competencies. The growth in off shore outsourcing has exploded in size as companies have sought lower labor costs and sophisticated technologies (Pfannenstein & Tsai, 2004). According to McKinsey Global Institute, the estimated offshore outsourcing activities will increase by 30 to 40% a year for the next five years. Supporting the growth, Forrester Research estimates that 3.3 million white-collar jobs will move overseas by 2015, which would amount to a yearly average from 2000 to 2015 of approximately 220,000 jobs out of a workforce of 138.8 million (Heffes, 2004). The opportunities and challenges of outsourcing will be discussed as it relates to scenario two, Global Communications. Key stakeholders will be identified and how ethical dilemmas may arise in the company. Lastly, the end –state goals will be discussed along with the problem statement.

Global Communications is experiencing economic pressure due to the rise of competitions. In hopes to improve business and to compete with the local telephone and cable companies, the Global Communications senior leadership team has developed two approaches. The first approach is to introduce new services, primarily to its small business and consumer customers, who will now be served in both local and long-distance markets across the country. Global Communications has developed a partnership with a satellite provider to offer video services as well as a satellite version of broadband, which will allow small business owner anytime Internet access using wireless telephone or PC cards.

The second approach, aimed at cutting cost and improving profitability, Global Communications plans to market itself on an international level with the goal of becoming a truly global resource. The company plans to move some of their technical call centers to India and Ireland, where the technology is more sophisticated and where the labor cost is much cheaper. As part of the approach to cutting cost, the company will downsize some of their domestic call centers, leading to the lay off of many employees. Employees, who do remain, will have to relocate and experience a 10% salary cut in order to meet the leaner budget. In efforts to improve business, there will be obstacles that Global Communications must face.

In order to cut cost, many employees will have to be laid off.