Problem Solution: Global Communications

Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications

Celeste Clayton

University of Phoenix

Foundations of Problem-Based Learning

MBA/500

July 2, 2007

Problem Solution: Global Communications

This problem solution shows Global Communications’ existing situation, their issues and opportunities and the stakeholder perspectives. Global Communications is faced with enormous economic concerns. The industry in general has been under economic pressure so Global Communications was not alone in this journey. Their stocked has plummeted by more than 50% in a three year span. While their profits decreased, their competition increased. The cable companies were offering bundle packages that included internet service, plain old telephone service (POT), and television.

The management team decided to capitalize on globalization and compete in local markets. The company decided to outsource its call center jobs to Ireland and India. This decision was made without sharing this plan with the Union members. They were notified of the changes after the negotiations had already taken place. Global Communications’ aphorism is “Our Edge Is People.” By not communicating to the employees who help increase profits, they are not living up to this philosophy. It seems as if they are not concerned about the well-being of their employees.

Global Communications wants to increase their profit margin and market share by expanding their services while lowering their costs to provide them. If Global Communications use the Nine-Step Problem-Solving model, they will be able to identify any issues that may arise with the company’s decision to outsource and expand services. The nine steps include (1) Describe the Situation, (2) Frame the “Right” Problem, (3) Describe the “End-State” Goals, (4) Identify the Alternatives, (5) Evaluate the Alternatives, (6) Identify and Assess Risks, (7) Make the Decision, (8) Develop and Implement the Solution, and (9) Evaluate the results.

Situation Analysis

Issue and Opportunity Identification

Global Communications had communication issues. The communication between Global Communications and its employees was vacant seeing how decisions were made and communicated to the Union after it had been approved by the board members. They made decisions without the affirmation of its stockholders and employees. They failed to keep all parties involved informed of the life altering decisions that were being made. “By improving decision making, knowledge management, employee needs and coordination, workplace communication has a significant effect on organizational performance” (McShane & Glinow, 2005). “First organizations depend on the ability of people to coordinate their individual work effort toward a common goal (McShane & Glinow, 2005).

Global Communications’ other issue included their competitive disadvantage. Currently, the telecommunications market had a competitive advantage on them. The telecommunications market currently offered new products such as bundle services that include internet, telephone, and cable services. "Local, long-distance and international markets are all competing for the same business but the industry suffered a huge blow at the hands of the cable companies, who stepped in to provide complete solutions encompassing computers, televisions and telephone service" (University of Phoenix, 2006). This is why Global Communications decided to outsource its call centers. This decision will result in layoffs for thousands of people who have already given up benefits. Going through with this global expansion will set a precedent for the entire telecommunications market.

Stakeholder Perspectives/Ethical Dilemmas

Corporate governance deals with the complex set of relationships between the corporation and its board of directors, management, shareholders, and other stakeholders. In the recent years, the regulators and legislators have intensified their focus on how businesses are being run. They are endeavoring to create a template for new corporate governance and disclosure measures, which is beneficial for both the stakeholders and controllers.