Global Communications Solutions

Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications

Problem Solution: Global Communications

Most industries face risks in the form of other competitors. The survival of an organization is dependent on its ability to stay ahead of the competition with the innovative technology and services. Success means being creative and develop products and service that are in unique to the industry— in this case, telecommunications. The telecommunications is continuously evolving and becoming increasingly competitive. Cable companies now provide customers with the option to combine their services into a bundle package to include satellite television, phone and internet services. Despite Global Communications’ success with stocks trading at $28 per share, the company has not been immune to the competition.

In an effort to revitalize the company’s position in the market, Global Communications’ leaders have decided make changes that will affect its business practices, employees and ultimately, the future of the company. This gap analysis will assess the ethical dilemmas that emerge as leaders announce their plans for reorganization; the effectiveness of how leaders communicate this information to employees and the success factors that will determine the future success of the company.

Situation Analysis

Issue and Opportunity Identification ( See Table 1)

Over the past few years, Global Communications has experienced a depreciation of their stocks by more than 50%, bringing their stock price down from $28 per share, to $11 per share. Global Communications’ survival depends on their ability to generate innovative products and services to their customers, while cutting expenses to increase revenue. The leaders of the company have devised a plan to offer improved internet services using wireless and PC cards Additionally, Global Communications has recognized growth opportunities in the areas of a satellite version of broadband, remote access capabilities and international marketing. This new strategy will also allow for the creation of job opportunities by outsourcing its call centers to India and Ireland, thus potentially improving foreign relations. The outsourcing option will reduce expenses by almost 40%, thus resulting in significant savings to the company. Despite this opportunity, management will need to consider the impact this decision will have on its domestic employees. Although some will have the option to relocate, come employees will face lay-offs while others will see a 10% decrease in their salaries. Good summary

Stakeholder Perspectives/Ethical Dilemma (See Table 2)

Global Communications’ investors are dissatisfied with the company’s current stock value which has depreciated by more than 50% in just three years. To gain back the confidence of its investors, Global Communications must reinvent itself in the market. However, the organization also must consider its most valued stakeholders— employees. Global Communications is also facing resistance from the union as many employees have already sacrificed a significant amount in health and education related benefits.

Global Communications used an ambiguous form of communication that made translating the message jargon – could be improved with more formal language difficult and caused emotions to interfere with proper decision making. Sensitive information was communicated through this medium when face-to-face communication would have been more appropriate. Meetings between leaders and subsequently managers and their employees could have avoided a feeling of being blindsided.

Additionally, the organization’s leaders allowed the corporate grapevine to dictate the way its employees became aware of important information such as proposed business strategies and major decisions affecting the future of their employees. Outsourcing to foreign entities, salary cuts and reductions in their workforce are all things that would have a major impact on current employees— job security and employee morale. The suggestion of putting a positive spin on potentially negative information could affect employees’ loyalty to the organization and their trust in the leaders of the organization. The leaders of Global Communications face the dilemma of deciding which stakeholders are more important. The new business plan is vital to the survival of the company in the marketplace, but in order to implement these strategies, the company will need support and loyalty from its employees.