Global Communication Benchmarking

Global Communications Benchmarking

Dell Computers

Issue Identified also facing the company

In the GAP Analysis of Global Communications two of the key issues identified were the layoffs, and loss of revenues. People are an integral part of the solution to many companies’ problems, and if you forget to implement these assets in your problem solving you may be setting yourself up for failure or a rushed decision.

As an article titled “Dell Warns of Layoffs, Motherboard Replacements”, (Spooner, 2005) has identified: “One the main issues identified was the loss of revenues. Dell Inc., which on Monday night issued a third quarter earnings warning, has enacted what it characterizes as a small number of layoffs as a part of a restructuring it says will cut costs and increase efficiencies.”

The Article continues “Layoffs, which have been frequent in the PC industry over the last several years, have been rare for Dell. The company, instead, has been on a growth streak since 2001 when an economic downturn caused a PC market slowdown. Dell saw the downturn as an opportunity. It cut prices in an effort to take market share from competitors, such as Compaq Computer Corp. and Hewlett-Packard Co.

How the company responded to the issue

The company identified a few of the ways that it was going to compensate for the issue one a few of which according to the article was:

“The layoffs and the motherboard replacement program, which Dell says it's handling by working with individual customers, are both included in a $450 million charge the company said it would take against its fiscal third quarter earnings, which will be announced on Nov. 10.” Dell decided to use some of the profits to help offset the damages.

Outcomes of the issue

The outcomes are as any business strategy could be defined, risky. The cited article states also that “Thus, in an effort to maximize its profits, it undertook a restructuring to consolidate some functions to improve operational efficiency. The restructuring created some job redundancies, which led to the layoffs, a company spokesman said”. “"We took several actions, which were designed to enhance operating efficiency, improve our performance and also reduce costs," said Jess Blackburn, a company spokesman. “Those steps resulted in some job eliminations."

Key Bank

Issue Identified also facing the company

Similar to Global communications one of the key issues with Key bank are layoffs. Key bank has resolute to reduce 150 to 200 jobs by phasing out its call center and employee help-desk operations according to Knight-Ridder Tribune Business News. The restructuring is motivated by the company’s need to improve efficiency. The job elimination is projected to recover the company’s efficiency because of waning call volumes.

How the company responded to the issue

According to Knight-Ridder Tribune Business News, the company will file a notice with the state government