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Problem Solution: Global Communications
Global Communications (GC), like all other telecommunications companies, has fallen out of favor on Wall Street due to poor revenue growth and return on investment for shareholders. Inability to grow revenues is mainly due to increased competition. GC's initial plans to remedy the problems were to develop new services and hire 1000 new salespeople paid for by outsourcing their small business call centers overseas. The call center outsourcing plan and the subsequent effects on labor relations and public opinion brought negative press and has affected relations with the Technology Workers Union and employees. Furthermore, the union was not represented in any of the planning stages of this idea. As a result of these issues, the employees and the union are very unhappy about the plan and the resulting loss of jobs and corporate commitment to the employees. A loss of productivity, morale and bad publicity threaten to derail the company's business plan.
GC is not the first business to face such difficult issues. Many other companies have successfully dealt with similar issues in the past. This paper discusses a solution to both the profitability issue and the employee relations issue. Successful incorporation of the following plan will reinvigorate GC's profitability and increase shareholder value while restoring validity to GC's motto, "Our edge is people."
Situation Analysis
Issue and Opportunity Identification
Increased competition in the telecommunications industry led to a decrease in confidence on Wall Street in the ability of the industry to continue growing. Over the past three years, this lack of confidence resulted in a 50% decrease in the stock price ...