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% 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 analysis will outline issues and opportunities that Global Communications will need to address as part of this plan. It will also identify the stakeholders and outline the goals for the organization.
Situation AnalysisIssue and Opportunity IdentificationGlobal Communications has an opportunity to successfully communicate their future goals 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).
It will be necessary for Global Communications to identify and consider the stakeholder requirements and principals. The future success of the organization will require a balance of these requirements and principals along with the needs of the company. By balancing the needs of all stakeholders, Global Communications will be able to execute a plan that will obtain competitive and profitable results. The long-term success of the company is dependent on the success and execution of this plan. "Before CEO's can step forth onto society's broad stage with a personal vision, they must make sure that their actions will not jeopardize the well-being of their companies, the jobs of employees, and the net income of shareholders" (Badaracco Jr., 1998, p. 122).