Problem Solution Global Communications

PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications

Keith Todd

University of Phoenix Online

MBA500

November 6, 2006

Instructor:

Problem Solution: Global Communications

The purpose of this paper is to address the issues faced by Global Communications and investigate the issues and opportunities available to Global Communications management, the risk associated with the issues and opportunities, alternative solutions GC can use to alleviate negative response and conclude with a viable and obtainable set of goals that could allow Global Communications to become a leader in their industry.

Global Communications competes in the telecommunications industry, which is recognized as volatile with stiff competition rapid advancements and changes in technologies. Analyst Dennis Drogseth (2005, p. 52) states that the “The challenges faced by global networks have more to do with management and process than with pure technology.”

Situation Analysis

Issue and Opportunity Identification

The telecommunication industry experienced rapid growth in the recent years substantial investments in transmission capacity. Furthermore, This rapid growth resulted in immense economic pressures on the industry and Global Communications is reeling from these pressures. Additionally, the telecommunications industry is currently experiencing major competitive pressure from cable companies who now offer competitive services in areas such as telephones, broadband, wireless and security. This stringent competition effectively reduced wall streets confidence in Global Communications and resulted in 40% depreciation in GC’s stock value.

In today’s economies more organizations are initiating organizational changes that are intended to produce increases productivity while decreasing cost. Economies of scale become a Key Point Indicator (KPI) as firms implement their reorganizations and move forward in their business practices. Many firms who are and have implemented reorganizations make the decision to outsource some products and services to foreign entities and subsidiaries and this sends a rippling effect throughout the U.S. economy.

Global