Problem Solution Gap Analysis: Global Communications
Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS
Problem Solution: Global Communications
Jesse Neubert
University of Phoenix
10/30/2007
Problem Solution: Global Communications
Gap Analysis: Global Communications
Years ago Global Communications was at the forefront of the telecommunication industry. Profits and market share continued to rise as the demand for traditional land line phone services grew. Now demand for such traditional services has decreased dramatically. Telecommunication companies have been facing increasing economic pressure and GC is no exception. Stock prices have fallen over 50% and GC is in major financial trouble. GC’s executive management team has developed a new strategy to increase growth and profitability. The new plan entails cost-cutting measures to improve profitability (primarily outsourcing certain customer service functions), globalization, and by offering a new array of services targeted at small business and individual consumers. While the new strategy seems like GC’s only hope, they are experiencing increasing opposition from their employees’ union regarding the outsourcing plan.
Situation Analysis
Issue and Opportunity Identification
Global Communications is experiencing financial hardship due in large part to the nature of the telecom industry as a whole. Telecommunication companies such as GC faced little competition in the past and an ever increasing demand for their product that was proportional to the increase in population growth. With little competition, GC had no incentive to make its services unique and adaptive to the changing market. While GC stood stagnant, dumping funds into its core landline business and contemplating mergers with smaller telecom companies, other competitors began to enter the market with new and innovative product mixes. Once demand for traditional landline phone service dropped off, so did the stock price of GC, along with investor confidence. If GC is to remain viable, care
Problem Solution: Global Communications
Jesse Neubert
University of Phoenix
10/30/2007
Problem Solution: Global Communications
Gap Analysis: Global Communications
Years ago Global Communications was at the forefront of the telecommunication industry. Profits and market share continued to rise as the demand for traditional land line phone services grew. Now demand for such traditional services has decreased dramatically. Telecommunication companies have been facing increasing economic pressure and GC is no exception. Stock prices have fallen over 50% and GC is in major financial trouble. GC’s executive management team has developed a new strategy to increase growth and profitability. The new plan entails cost-cutting measures to improve profitability (primarily outsourcing certain customer service functions), globalization, and by offering a new array of services targeted at small business and individual consumers. While the new strategy seems like GC’s only hope, they are experiencing increasing opposition from their employees’ union regarding the outsourcing plan.
Situation Analysis
Issue and Opportunity Identification
Global Communications is experiencing financial hardship due in large part to the nature of the telecom industry as a whole. Telecommunication companies such as GC faced little competition in the past and an ever increasing demand for their product that was proportional to the increase in population growth. With little competition, GC had no incentive to make its services unique and adaptive to the changing market. While GC stood stagnant, dumping funds into its core landline business and contemplating mergers with smaller telecom companies, other competitors began to enter the market with new and innovative product mixes. Once demand for traditional landline phone service dropped off, so did the stock price of GC, along with investor confidence. If GC is to remain viable, care
References: Hanessian, Brain (2005) Leading a turnaround: An interview with the chairman of D&B. Mckinsey Quarterly Issue 2 p83-93 Key Bank (N.D.) Retrieved on 10-13-07 from Decision Makers Vol 31 Issue 1 p133-146 Stickland, Warren (2007) Leading Change: An interview with TXU 's CEO