Problem Solution: Global Communications
Due to the telecommunications industry slowing to a screeching halt; it has left Global Communications in a dilemma to find money saving alternatives that would increase their profits while remaining competitive. With the 50 percent depreciation in stock value over the years, Global Communications proposed a plan to the board that would affect all stakeholders involved with the company. The proposal was to outsource and relocate many of the domestic jobs while expanding the local market with new service. With the lack of communication from Global Communications to the Technologies Workers Union, the plan to outsource could be held up due to lawsuits against Global Communications.
Situation Analysis
Issue and Opportunity Identification
Global Communications faces huge competition in the local, long distance, and international market place. Over a three year period Global Communications has witnessed its stock fall from $28.00 per share to $11.00 per share. Wall Street’s lack of confidence in the telecommunications industry is shared by Stockholders as well. Global Communications strategy to counteract this problem is to introduce new services, increase its market share locally and internationally, and to execute new cost cutting measures to improve profitability. These cost cutting measures include outsourcing jobs to India and Ireland, laying off employees, as well as salary cuts and relocation for some.
Global Communications senior management team has decided on a business strategy that will expand its market share to remain competitive on a global scale. This decision that was made will have to deal with angry union representatives. The union sees that the latest move made by Global Communications was ‘con ...