Situation Analysis and Problem Statement
This paper deals with the issue faced by the telecommunications company known as Global Communications. Global Communications competes in and industry that is known for unusual competitive pressures and very quick changes in technology. However, as stated by Dennis Drogseth (2005, p. 52) "The challenges faced by global networks have more to do with management and process than with pure technology." This paper will address the issue faced by Global Communications and explore the issues and opportunities available to Global Communications management. I will also explore some stake-holder views, and finally provide a proper problem statement followed by my opinion of what should be the goals of Global Communications.
Situation Background (Step 1)
The telecommunication industry has experienced rapid growth and an accompanying huge investment in transmission capacity. This growth has put tremendous economic pressure on the telecommunications industry, and Global Communications is not immune.
In addition the telecommunications industry has fallen under huge competitive pressures from cable companies who are now providing competitive services in areas such as telephones, computers and television. All this competition has reduced wall streets confidence in Global Communications and resulted in a 60% depreciation in its stock value. Indent paragraphs five spaces vs. three.
Global Communications has responded to this pressure with a suite of new calling features, local and long distance service and by entering new international markets. All with mixed results. The situation with Global Communications is not unique. In todays (today's) global environment many companies, due to increased competition, must reduce costs in order to remain competitive. As a response Global Communications has developed a plan to out-source its call centers to India and Ireland. In addition Global Communications has developed a partnership with satellite providers to offer new services such as video and...