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Free Example of The Global Communications Essay

Global Communications will increase its growth and market share by becoming more competitive and giving a lot of value to its employees. Global Communications needs to regain its market share and realize growth. Its leadership team also wants to cut the company’s costs by cutting call centers and off shoring them to Ireland and India. Cost cutting is better, but if the goal is maintaining the employee as one of the main assets, the employees’ treatment must be handled in a different way. Collective bargaining has its limitations and it is sometimes restrictive to business, but does have its place. In the Global Communications scenario, it will help protect the workers from the overzealous leadership.

Something the Global Communications’ leadership could learn from other companies who have successfully weathered most difficult and challenging times is the need for communication with the employees. Global Communications leadership needs to have the communication of its vision to the rest of the company. Without this communication and warning trust has no foundation. For instance, trust and security are two of the main attributes of stable jobs. If GC is successful in averting what has turned into a very bad situation, the steps they have taken should position the company for the continued growth and profit. Global Communications will reduce its labor costs thereby reducing the total expenditures. It will implement a global sales force that will bring more business. It will be a viable company with an ability to maneuver in the global market. It would have reinvented itself for the new challenges it faced.

When researching the generic benchmarking, Pfizer and Merck were used as the suitable comparison companies. Both companies are global in reach and both faced similar problems/challenges in their income structure in the near future. This section draws some comparisons between Global Communications and these two pharmaceutical companies (Merck and Pfizer). Merck is the oldest pharmaceutical and chemical company in the entire world. This company has proven track records of innovation in pharmaceuticals and chemicals. The company credits its employees which is the main reasons for its success and growth. They also link their success to the company and focus on the application oriented research and development, as well as the close customer orientation in the marketplace. Merck is facing the problem of loss of several of its high money makers i.e. the Fosamax for treatment of osteoporosis, Singulair for treatment of asthma and Cozaar for the blood pressure desease. The Merck's Zocor had about 4.4 billion in the year 2005. Zocor sales in 2007 reduced to about  82% from 2005 levels because of the loss of patent protected status. In preparation for the loss in the revenue when several of its high profit drugs lose their patent protection, Merck Company had announced downsizing in 2006. Similar to Global Communications, Merck had to develop a working plan on how it was going to deal with this significant loss in revenue, continue to reinvent itself and keep focused on its main business (7chat). Merck Company sold its Generics subsidiary companies. The company continues to spend huge amounts of money on Research and Development. Merck Company settled the Vioxx suits for about $4.84 billion which was much less than the expected tens of billions of dollars which were initially projected.

Merck Company acquired Serono which is Biotech Company, to diversify its research and development efforts to include not only chemical formulations, but also the relevant biology based drugs. The company’s business restructuring included the reduction of 7,000 positions from its global workforce. In addition, Merck is consolidating its manufacturing facilities, increasing the outsourcing and reducing the procurement expenses. The company managed to eliminate 4800 of the 7,000 positions targeted for the reduction. They closed the operations at three manufacturing facilities and also ceased the operations at two other plants by the end of the year 2008. The company is looking forward to improving its efficiencies by employing the Six Sigma principles throughout the company. It restructured its sales force and redirected its efforts to new products. Merck has tried to outsource some of its research to India. For instance, Advinus, the Indian company, will be involved with the projects relating to research and development of drugs that could be used in the treatment of metabolic disorders such as obesity and hypertension. Merck retains the rights to advance into late stage clinical trials and commercial development. The company has signed a multimillion dollar contract with Cognizant to provide some vital services such as IT infrastructure management and business process outsourcing. The Merck leadership team knew that their profit base was going to be severely impacted by the loss of patent protection of several of their primary drugs. They took steps in advance to retain the viability of the business. They communicated their vision to all employees well in advance of the need to implement the working plan. Specifics are not always in commonly available resources. However, the best practices in communication are followed in other situations and probably best practices would have been followed in having a town hall setting to share the way forward with all employees (Jet 1999).

Pfizer Company is the manufacturer of the Cholesterol lowering drug called Lipitor. Lipitor happens to be the most successful drug ever introduced. However, like Merck Company, Pfizer is facing the end of patent protection for one of its most profitable drugs. Pfizer unveiled the sweeping strategies which aimed at transforming a pharmaceutical company in need of traction to one that he hopes will produce leading drugs through a smaller research operation, fewer employees and fewer manufacturing sites. Some of Pfizer’s overhaul included major staffing cuts in the order of about 20% of the United States sales staff. ( Peterson P. 2006).  This would save a lot of millions a year. Pfizer Company has its own division to produce the generic versions of drugs. It authorized a generic version of its blockbuster Zoloft to its Greenstone subsidiary.

Pfizer company has retained its generic drug division while Merck company has sold its generic drug division. It has also diversified its portfolio to include biopharmaceuticals with its acquisition of BioRexis. The Pfizer Company is employing the outsourcing for part of its manufacturing operations. It is looking into the viability of moving up to about 30% of its manufacturing to China. It is also expanding its research efforts in India and South Korea. The outsourcing plans follow the Pfizer's announcement at the beginning that it would close manufacturing sites in New York and sell the third manufacturing site in Germany. Pfizer Annual Report of the year 2006 listed 5 priorities for the company. One of the priorities is to make Pfizer a great place to work in. This goal of making Pfizer a great place to work is outlined as one way of finding new ways to work together, reducing supervision, increasing the accountability and encouraging our employees to think like the owners of the company.  Pfizer is constantly examining its position in its market. It has had to make some hard choices in its endeavor to streamline its manufacturing, realign the workforce and maintain its market share. They did communicate all the decisions to the employees in a formal manner before the actual staff reductions. Their plan included reducing the workforce, consolidating the manufacturing plants, finding more applications for the existing drugs and acquiring the biopharmaceutical companies (Hoovers Inc. 2008).

Global Communications can obtain or learn several key points from the two companies (Merck and Pfizer). They kept their employees well informed and up to date. When they came up with a plan, they notified the employees about the key points that were in the plan. The fine details were released as the specifics of the plan were being worked out. The two companies did plan on reducing the workforce and they both planed on reducing the quantity of production plants thus reducing the excess manufacturing bandwidth capacity. They both saw the need to increase the diversity of their main products. They knew when several of their core products came off of patent protection their profit margins would reduce. The Global Communications leadership needs to revisit their timeline for the implementation. They need to communicate with their employees about the specifics in a town hall setting. Perhaps the leadership can use some of the tactics of the other companies and be more proactive in getting the input of the major stakeholders before making the unilateral decisions. Merck and Pfizer both say that they have much interest in their employees. These companies have employee training and development programs. The Global Communications leadership can implement the employee training and ask their employees if they want to travel and be expatriate employees. This reduces costs, but retains jobs. (Weitz B & Wensley R. 2002).

Code: Sample20

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