Situation Analysis - Issue and Opportunity Identification

Situation Analysis

Issue and Opportunity Identification

Global Communications has three primary issues that face it in implementing its new business strategy: restructuring its technical call centers, developing a more sophisticated technology for its customers and re-establishing its professional relationship with the Technologies Workers Union.

First, Global Communications is faced with a downturn in the telecommunications industry and its customers demanded a higher degree of technical sophistication from its technical call center sales people. In response to the high demand from its customers, Global Communications plans on introducing new services, primarily to its small business and consumer customers. Global Communications is also looking to partner with other technology providers to offer its customers video and wireless technologies.

The second issue Global Communications faces is the restructuring of its technical call centers. In order to reduce labor costs, Global Communications has just announced it plans to outsource all technical call center jobs to India and Ireland. By outsourcing these positions, Global Communications must lay off one-thousand of its current employees. The current technical call center employees that opt to stay with the company will take an average of a 10% pay decrease by moving to the consumer department. In order to retain some of its current employees, Global Communications must develop an employee benefits package which includes a 15% retention bonus. Global Communications must negotiate with their current employees to create a win-win situation for the employees who stay with the company.

The final issue Global Communications faces stems from a lack of effective communication with the Technologies Workers Union. “Effective communication is vital to all organizations because it coordinates employees, fulfills employee needs, supports knowledge management, and improves decision making.” (McShane & Glinow, 2005, p. 324). A few months back, the Technologies Workers Union took benefits away from the employees, telling the employees that it was needed in order to secure current jobs and open new positions within the company. Just months later, these same employees are going to have their jobs taken from them because of the implementation of the new strategy developed by Global Communications. Had the Union known about the new strategy, they may not have taken these benefits from the employees. Global Communications must find a solution to re-establish its professional relationship with the Technologies Workers Union in order to create a win-win partnership. By having a well developed relationship with the Technologies Workers Union, this will allow the employees and senior leadership team to work more effectively towards one common goal.

Stakeholder Perspectives/Ethical Dilemmas

Global Communications has four primary stakeholders: board of directors, employees, senior leadership management team and the Technologies Workers Union. In the implementation of Global Communication’s outsourcing strategy, all stakeholders have been affected immensely.

First, the board of directors for Global Communications has come to a realization that it needs to compete in local markets and increase its globalization in order to stay competitive in the telecommunications industry. The board of directors also has a social responsibility