Situation Analysis And Problem Statement: Global Communications

Situation Analysis and Problem Statement: Global Communications

The realm of communications within a global economic environment is critical because of how critical effective communications has become in comparison with corporate operations. Global Communications (GC) while finding it necessary to adopt a radical business strategy in order to stay competitive, seems to have relegated the importance of communication among its corporate stakeholders to one of convenience and commonplace. GC is currently faced with a more than 50% loss of capital valuation on the stock market and is faced with increasing competitive pressures from a myriad of smaller, more nimble competitors in the telecommunications industry. In order to meet these competitive pressures, GC, and its executive staff, has devised a strategy whereby several of its call centers will be outsourced to both Ireland and India resulting in the lay-off of a considerable number of staff. Additionally, GC has intends to partner with a satellite communications provider to move into wireless services and intends to realize up to 40% savings on a per call basis by relocating its technical call centers overseas.

Issue and Opportunity Identification

The primary issue for GC is whether to risk alienating a majority of its retained employees by the threat of further lay-offs as well as the scheduled reduction in pay for the remaining call center employees who will be retained. Clearly, while competitively attractive, this strategy risks affecting the operational integrity of the company based on its stated belief that its employees are one of its most valued competitive advantages. The opportunities are two-fold for GC: 1) the value for the company in reducing some of its operating costs by 40% or more is cannot be overstated, and 2) while perhaps finding it necessary to undertake such a strategy, GC's executive leadership had an opportunity to involve the union and its leadership in the decision-making process and allow them to understand the long-term necessity of some of these decisions.