Global Communications (GC) is under strong economic pressure due to a high competition on the telecommunication market. Emerging technologies and new service providers are causing strong price erosion on regular services, calling for an upgraded service offering to address telephony, video and internet access requirements.
Although GC experienced financial difficulties, it plans to maintain a leadership position on the market by implementing a plan that will allow both local growth an worldwide expansion. While the senior management intends to implement a plan for increasing volume, upgrading services, reducing costs and extending overseas, numerous challenges are still ahead.
Situation AnalysisIssue and Opportunity IdentificationThe problem statement for GC is finding new ways to increase profitability on a competitive market in the context of globalization and technical advances. High competition on the telecommunications market caused losses on Global Communications revenues that translated in a stock price fall more than 50% in one year.
In order to become competitive and a Global Corporation within three years, senior management came up with a strategic plan. In-house, they have been looking for local growth by implementing new services and cooperating with satellite and wireless providers. For cost reduction, the management chooses to outsource small business call centers to India and Ireland. Because of the outsourcing, the majority of the local employees from these centers will be laid-off and part will be relocated to consumer centers with a salary cut. These actions will have a moral impact on the employees and automatically a decrease in productivity. At the same time, GC may lose credibility to the remaining people. The biggest challenge that CG may be facing is the consequence from the Union because of the contractual breach.
Stakeholder Perspectives/Ethical DilemmasWhen outsourcing, the senior managers and board of directors must develop and maintain a balance among all the...