Global Communications is a telecommunications company that conducts its business in a volatile market which is characterized by very complex levels of competition. The Global Communications is a major player of some significance in the Telecommunications Industry. It is a single industry player and it is able reap the benefits of industry fully and it is also vulnerable to challenges/problems when they occur. This problem solution essay will address the issues that the Global Communications faces which includes Global Communications management choices in the redirection of the company, reduced stock value, shrinking market share, communications breakdown and strained labor relations. In addition, this paper will identify areas of opportunity for Global Communications to overcome the issues and regain its position as a leader in the telecommunication industry.
Global Communications is the lifeblood of an organization. The company managers should communicate the vision of the organization from the CEO to all the workers. The company has experienced about a sixty percent decrease in its stock over a period of about three years. The increased competition by cable services are infringing on a territory that was previously the domain of communications industry. Global Communications leadership and management teams should set a successful direction for the company to enhance its survival. Situation Analysis Issue and Opportunity Identification
Global Communications has a changing market place and the leaders need to explore new market. This includes becoming partners with other existing service providers to increase market penetration. The company team also wants to focus on the cost savings. The global arena is highly targeted to make the communication company a truly global competitor. There has been a serious erosion of the traditional customer base from the cable companies who are offering complete solutions for customers. No longer do customers require separate providers for telephone, cable and Internet services. Global Communications Company has to discover a response to stay the erosion of their customer baseÂ (Mensah N. 1990).. The act of partnering with other service providers allows Global Communications to vigorously expand its reach without significantly increasing its expenditures on the infrastructure. Hiring many new skilled salespeople will increase market share by increasing the recognition of the company. Off-shoring cannot be able to grant the company the savings they think they will realize because it looks good on paper, but the intangibles such as the inability to understand the person on the other end of the line or the harm to the morals of the employee cannot be overlooked. Many companies spend tens of millions of dollars to set up call centers and offshore their technology centers after which they realize that the savings is less than they projected.
Â Companies are going to outsourcing as a significant alternative. This will allow the communication company to retain the same support teams while allowing the company to reduce worries about pensions and other benefits. The company will pay for a contractor about the same amount of money they had to pay for an employee with the associated benefits. However, they do not need to continue to pay the personal pension after they have retired. This does not appear to be sensible at first, but once workers have retired they generally do have a higher five year average income than employees who are in the middle of their careers. This is a considerable expenditure for a company to carry. The three of the major stakeholders in the Global Communications scenario include the stockholders who own stock in a company to receive dividends, the workers who need jobs and benefits in the company and the management who try to maintain talents and achieve the required growth. The stockholders own a stock which is an investment medium. If they have no thoughts that they will get a return on their investment, they will move their money to an investment vehicle that they believe will give them the returns that they are expecting. Stockholders also exchange their money for opportunity. They always have a reasonable expectation of a certain level of return for their money. The workers range from those persons who put their heart into their jobs to those who do enough to retain a job. Workers exchange their work for salaries, wages and benefits. They exchange their time for security for their respective families. When their benefits are reduced, the security of their families is also reduced and this leads to an environment of uncertainty. The best always get a ready market. The employees who are uncertain of their future situations should plan for their families and they should be more inclined to look when given the signs of impending adverse circumstances.
Â At Global Communications, the Union already gave up about twenty percent of their learning and health benefits. This alongside the news that their jobs would be outsourced would compel people to start looking to other stable sources of income. It has become the Global Communication’s concern on the possibility that the best workers would be attracted away to other companies. The management has a very big responsibility. It has to cater for the stockholders, keep all the workers happy, direct the company and maintain its competitiveness in a fast changing environment. Bigger risks always entail bigger rewards. Since the management has more responsibility, it does make sense to compensate them with more pay and more benefits. However, the management has a responsibility to be more ethical and fair in the treatment of the employees. One of the problems of the management team for Global Communications was their lack of communication with the company in a timely fashion. They had a knowhow on what they wanted to do and they debated amongst themselves without giving the necessary notices to other company’s stakeholders, more especially the Union workers. The information circulated around through grapevine and they suffered the consequences. For instance, their reputation in the public eye was tarnished and their credibility with the Union was subjected to a very serious risk.