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Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS
Global Communications was faced with stiff competition from various local, long-distance and international markets and needed to strategically look at increasing growth while decreasing costs. Senior leadership developed a comprehensive approach to addressing both issues while more aggressively marketing the company globally in hopes of reversing the three year trend of depreciating stock values; stock had depreciated by 50%.
CEO Katrina Heinz, who was with Global Communications only six months, was recruited from a global long- distance carrier for the primary purpose of increasing both revenue and profits through more aggressive mobilization. Prior to discussing the senior leadership’s plan with Union leaders, Heinz presented the plan to the Board. Heinz was notified that the Board completely agreed with the strategic plan and loved the idea of moving some technical call centers to India and Ireland in order to reduce unit costs for handling calls by 40%. The Senior Leadership at Global Communications was then tasked with rolling the plan out to Union Leaders and employees.
Situation Analysis
Issue and Opportunity Identification
Global Communications neglected to include the Union in discussions regarding the proposal to move some of the technical call centers to India and Ireland in order to reduce unit handling costs by 40%. The Union had just recently given up 20% of the employee’s education and health benefits to alleviate some of the company’s financial pressure. McShane & Von Glinow discussed communication barriers; Global Communications employed filtering (2004, p.334). “Some messages are filte ...