Global Communications Scenario

Topics: Globalization, Outsourcing, Problem solving Pages: 17 (5609 words) Published: January 7, 2007
Situation Analysis and Problem Statement
Global Communications is facing many challenges in an effort to compete in an ever-changing technological time. Global Communication would benefit from utilizing the 9-step problem-solving approach when forming alternative to evaluate for their business plan. Using this problem-solving method will help the company to identify the key stakeholders associated and recognize the possible ethical dilemmas that may result from stakeholders having competing values. The method will help them recognize the existing problem, and how they can select the alternatives that will achieve their end-state goals. The plan will help them implement their optimal solution and evaluate any risks associated with it. Understanding the current environment is essential for Global Communications to obtain the best benefit from using the problem-solving method. Situation Background (Step 1)

Global Communications is in a precarious situation. In the past three years, Global Communication's stock price has suffered over a 50% depreciation, tumbling from $28 per share to $11 per share. Their business has suffered partially because of the highly competitive industry in which they operate. Throughout the past several years, the cable companies have entered the telecommunications market offering complete solutions, including computers, television, and telephone services (University of Phoenix, 2006). Additionally, due to globalization, there are now local, long-distance, and international markets competing for the same business (University of Phoenix, 2006). In an attempt to compete, Global Communications has developed a new two-fold business plan. First, Global Communications plans to introduce new services to their small business and consumer customers. Additionally, Global Communications has aligned with a satellite provider to provide satellite television services and internet broadband. Global Communications has also partnered with a wireless provider to allow small businesses to access the internet using a wireless telephone or PC card (University of Phoenix, 2006). Second in the business plan, is to implement several measures to increase profitability by cutting costs. The cost cutting measures include outsourcing the technical call center to India and Ireland, resulting in domestic job losses. Some employees whose positions are being outsourced can be relocated into the consumer call center, but those employees will have to take a 10% pay cut. To ensure that both of these initiatives work, the company plans to increase marketing on an international level (University of Phoenix, 2006). Both pieces of the company's new plan presents them with several issues that need to be realized and many opportunities that should greatly benefit the company's future. Issue Identification

Global Communications has several issues that they are currently confronted with. The first issue is that their stockholders are disappointed with the company and the waning telecommunications industry as a whole. The lack of stockholder confidence has resulted in more than a 50% decrease in the stock price for Global Communications during the past three years. Three years ago, the stock was trading at $28 per share, compared to $11 per share now (University of Phoenix, 2006). Another issue that the company is faced with is a potential public relations nightmare. The company has stated many times that their loyal employee base gave them the competitive edge (University of Phoenix, 2006). The most recent move by the company, to outsource jobs and layoff one thousand employees, is inconsistent with this once highly touted philosophy. A public relations disaster is certain if the company fails to address this inconsistency. As a result of Global Communication's outsourcing plan, the company is going to face difficulty from its employees and the labor union. The union is upset because they recently gave a 20%...

References: Hoffman, T. (2003, April 28). Bank 's IT Workers Threaten Strike Over Outsourcing. Retrieved March 29, 2006, from,10801,80727,00.html.
Nextel (2006). Strategic Partnerships. Retrieved March 28, 2006, from
University of Phoenix. (2006). Problem Solving Approach: An Example-A Life Work Scenario. Retrieved February 28, 2006, from University of Phoenix, Week One, rEsource. MBA 500-Foundations of Problem-Based Learning.
University of Phoenix. (2006). Scenario: Global Communications. Retrieved February 28, 2006, from University of Phoenix, Week Four, rEsource. MBA 500-Foundations of Problem-Based Learning.
University of Phoenix. (2006). MBA 500 Week Four Rubric. Retrieved March 17, 2006, from University of Phoenix, Week Four, rEsource. MBA 500-Foundations of Problem-Based Learning.
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