Problem Solution: Global Communications

Problem Solution: Global Communications

University of Phoenix

MBA 500

Problem Solution: Global Communications

This paper will give an intimate look into the strategic plan for Global Communications. It will go into the details of the plan, including the downsizing of the company to cut cost. Globalizing the company and outsourcing to increase the overall profit of the company are key issues that will be addressed..

May issues may arise from the implantation of the proposed plan. Problems, which generate low employee morale, reduction in profits and friction between the union and the stakeholders will be discussed.

Global communication has been faced with a loss in revenue over a period of time. They are now ready to excellerate their efforts of production. Several ideas have been presented. The company still feels that profit is its ultimate goal and by implementing a few changes they have a chance to succeed. We will explain the benefits of outsourcing work to overseas countries, downsizing the company from within and presenting the consumer with a new and innovated product that will surpass the competitors. With the help of a well established administration, these changes can help increase the profit of the company over time.

The Telecommunications industry has undergone many changes with the rise in economic pressure from various sources. In addition to escalating competition, cable companies newly formulated plans and calling features help deplete the market share from Global Communication. “To pump up the volume, the Global communication senior leadership team has developed a two-pronged aggressive approach” (company Overview). This new approach will be targeted towards putting Global Communication back in control of the market shares. It will also provide them with new calling features in order to compete with local providers and cable companies as well as giving it the globalization it needs to stay profitable. This new strategic plan has the potential to generate issues of ethical concerns within the company and the workers union.

“Downsizing our call centers has major implications although some of our current call center reps can be relocated to our expanding customer call centers, many will be let go. Those remaining will be expected to take an average 10% salary cut.” (Rodriquez, Sy EVP- Consumer Marketing and Sales). The implementation of this plan will not be favorable amongst the employees and union officials. The company must move forward with the proposed plan if the goal is to increase the revenue and profitability of the company. The main concern of the union is not profit but the amount of lay-offs and outsourcing of jobs associated with the proposed plan. Downsizing of Global Communication has its bonuses. It would offers higher salaries with career advancement opportunities for employees; while boosting a 40% reduction in handling call volumes cost.

To maximize profitability the company plans to market itself more aggressively on an international scale with the vision of becoming a viable competitor in the international market. This decision has led Global Communication to outsource their small business department to India and Ireland. The plan will address the current concerns for technical advancement within that department. This action will result in the loss many jobs.

Due to the lack of communication, this became a problem and caused conflicts between Global communication and the workers union. Conflicts caused by the unwillingness from the senior leadership team to keep the union officials within the loop of things happening. As stated by Maria Antez, (VP of Technologies Workers Union), “first you took away benefits, now they are taken away jobs and giving them to Ireland and India.” Benefits in which resulted in a 20% reduction in educational and health benefits from the company. The new strategic plan leaves no room for negotiation; a win-win situation will not be tin the best interests of the stakeholders. Unfortunately, these opportunities must be taken into account to increase revenue and the profitability of Global Communication

“Stakeholders can be an individual or a group who have an invested legitimate interest in a business or organization.”(Need quotation). The senior leadership team at Global Communication will be considered the stakeholders, but at times they have to commonly reflect the shareholders values; where emphasis is placed on profitability over responsibility. Shareholders usually view organizations as primary investment opportunities for its owners. “Shareholders value proponents believe an organizations success can be measured by share price, dividends