Global Communication Benchmarking
Introduction
Increasing profitability while using cost-cutting measures can either fail or succeed based on the strategy used. Global Communications is like any other corporation finding itself in a situation to make drastic operational changes. In order to survive it must cut costs in order to improve profitability. The Global Communication senior leadership team developed an aggressive approach to remedy their financial losses. First, Global Communications will offer a new video service and a satellite version of broadband to its small business and consumer customers. This will allow small business owners Internet access anytime using wireless phones or PC cards. Second, Global Communications will identify cost-cutting measures that will help them to improve profitability. To do this they will create call centers in India and Ireland in its effort in becoming global.
In order for Global Communications to move forward with their plan, it must downsize its domestic centers. Downsizing its workforce will have major implications. Some of the current call center reps who are going to relocate to the expanding consumer call centers will be expected to take an average 10 percent salary cut. The issues with the labor union and coming to an agreement with them. Those implications will affect Global Communications' entire strategy. The question is will Global Communications increase profitability in the long run due to this plan to downsize. On the other hand will Global Communications experience increase profitability in the short term and experience new problems due to the downsizing plan? Before Global Communications begins implementing their cost-cutting strategy, Global communication has to look at how other companies faired. G ...