Global Communications Problem Solution

Essay by sethstoneUniversity, Master'sA, July 2007

download word file, 11 pages 5.0

Global Communications is a leader in the communications industry and is under strict competition against other telecommunication companies. The development of new technology and emerging companies in the telecommunication market is causing prices to drop. With the development of new technologies, upgrades to the current standard services are needed in order to stay competitive in the telephony, video, and internet access requirements (Balkin, Gomez-Mejia, 2002).

Global Communications is experiencing financial difficulties, but there is a plan in place to maintain a competitive advantage by implementing a strategy to move the company into a global market. The Senior Management team is executing a plan to increase the customer base, upgrade technologies, reduce overhead, and extend services to different areas around the world. There are challenges ahead for Global Communications, but its success is sure to come (Balkin, Gomez-Mejia, 2002).

Situation AnalysisIssue and Opportunity IdentificationThe problem statement for Global Communications is to become more profitable and increase global market-share while staying competitive and increasing their product innovation.

Currently, revenue is down while competition is high. The effect of this is causing the stock value of the company to drop more than half in a year's timeframe (Balkin, Gomez-Mejia, 2002).

In order to become competitive and global within the next three years, senior management has developed a strategic plan. Locally, this team is looking to grow by implementing new telecommunication technology by providing new services and working with satellite as well as wireless providers. For cost reduction, senior management has created an action plan to outsource small business division call centers to India and Ireland. Due to the outsourcing of jobs overseas, local employees will need to be laid-off or be relocated to the consumer center with a pay cut. This will cause the employee morale to decrease, and result in a...