Global Communications, once a leader in the telecommunications industry, has fallen on hard times due to increased competition. In the past three years, Global Communications stock price has dropped more than 50 percent and is now trading at $28 per share. In an attempt to increase profitability the company leadership has developed a two-prong approach. First they plan to grow by introducing new services to small business and consumer markets including local and long-distance telephone, video services, satellite broadband, and wireless internet access. Second the company is looking to improve profitability through reduction in costs (University of Phoenix). This paper will discuss issues and opportunities affecting Global Communication and their stakeholders. Several alternative solutions to outsourcing will be evaluated based on generic benchmarking and an optimal solution presented.
Situation AnalysisIssue and Opportunity IdentificationThe first issue is that Global Communications isolated their plans for expansion and expense reduction to the senior management team.
This created a "silo of knowledge" that can undermine an organization's potential (McShane & Von Glinow, 2005, chap. 11). In moving forward, Global Communications has an opportunity to effectively communicate their vision, goals, and plans for the future to all stakeholders. "Communication is a key driver in knowledge management. It brings knowledge into the organization and distributes it to employees who require the information" (McShane & Von Glinow, 2005, chap. 11).
Secondly, it is important for Global Communications to choose the correct media options to communicate their plans. There are different options available depending on the message to be delivered and the stakeholder affected. By selecting the correct media options, Global Communications can provide optimal communication to all of the stakeholders involved in the company's expansion and outsourcing plans. "Managers can help reduce information overload and improve communication effectiveness through their choice of communication media. If an...