Problem Solution: Global Communications
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University of Phoenix
Situation Analysis and Problem Statement: Global Communications
Global Communications (GC), due to intense competition, finds itself with lower revenues and lower profits than expected and as a result with an unacceptable cost basis to work with. This has driven the management group to want to cut costs by outsourcing jobs in the hopes of lowering costs as well as a new Globalization initiative to attempt to increase sales. However, due to a lack of communication amongst all the stakeholders the internal hostilities have boiled over into a Labor union dispute which may include Government involvement. With the impending layoffs morale is a low point and measures need to be taken to not only prevent a mass exodus of employees but to re-energize and reaffirm GC commitment to the employee.
Describe the Situation
Issue and Opportunity Identification
Wall Street has low confidence in the telecommunications industry and GC share price is at a three year low of $11 (from $28). Profits are running low due to increased competition from local telephone companies going national as well as cable companies entering the telecommunication playing field and offering a much wider array of services. This cable company offering in particular is causing a number of GC customers to move away from GC.
The management group created a plan to cut jobs and to outsource the work to India and Ireland without including the Labor Union in any of the process. The Labor Union relationship was already strained due to the Labor Union giving up over 20% of their education and health benefits and the Labor Union President feeling this was already too much to gi ...