Global Communications has recently felt the pressures of competitors in the telecommunications industry. With new competitors entering the field constantly and cable and satellite companies reaching out to new adventures, it makes it increasingly difficult for them to survive. Cable companies have been able to offer complete packages to consumers including telephone, computer and television services with success. The technological edge and financial abilities that larger companies have in the industry creates even more pressure on Global Communications to set themselves apart by becoming a leader in technology and success. Recently stocks for Global Communications have fallen from $28 per share to $11 which leaves them with no choice but to restructure and refocus the company. With the increased competition that Global Communications has felt senior leaders have had to come up with a plan to structure the company in a way that will help them bring life back in to the company. The following problem solution template will present different alternatives for the company to consider in achieving what is best for everyone involved with the company. The plan will focus on the reputation of the company and those involved with the company both inside and outside of the direct workings.
Issue and Opportunity Identification
A new plan formulated by the senor leaders includes many changes with the services that they will offer and the sources of employment for the Global Communications. In an attempt to increase profitability they plan to outsource a portion of their technical call centers to India and Ireland. They would also like to make new services including computer and wireless phone cards available. Once these changes are implemented the company should experience a 40% decrease in costs associated their call centers. These changes will create a decrease in the number and quality of jobs that are available to current employees who have recently suffered from a 20% decrease in their benefits. Thousands of people who are currently employed by Global Communications will inevitably lose their jobs while some will be allowed to transfer to new locations. The catch with the relocation of current employees is that they will have to take a 10% decrease in pay to stay with the company. The new plan is not only one that does not seem to benefit the current employees but stands to create more issues within the union. As a company they have reached a point where their next move is vital to their success as a company and their reputation. From this point the leaders of the project will need to come up with alternative plans to better fit all of the individuals. The employee union put up much fuss in the fact that they were not involved in the preliminary planning and must be considered in alternative solutions. They need to play an active part in speaking for the employees that they represent.
Stakeholder Perspectives/Ethical Dilemmas
In their attempt to keep all parties involved satisfied the senior leaders have to take into account all possible interest, rights and values of different stake holders. This becomes increasingly difficult when they find that not only do they want good end states for themselves but also for stockholders, board members, the union and employees. With the wide array of different perspectives they face many conflicts in their solution. Board members are the people who are elected to voice the opinions and views of the stockholders. With stock prices falling as much as they have in the recent years for those who have backed the company financially it is no wonder that this is going to be a main focus in changing the company and profitability. Their main focus should be to raise profits to reward those who have footed the company and prove that they are a company that should be stood behind. The backbone of the company would be the...