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Problem Solution: Global Communications Essay

4450 words - 18 pages

Like most technology industries, the telecommunications business is experimenting major changes. Too much competition by the cable companies who move in to provide complete solutions packages containing computers, televisions, and telephone services has reduced the market and profits of old telecommunications companies. To remain competitive communication companies need to implement drastic and creative solutions. Global Communications (GC) is not the exception and its management has devised some radical solutions due to strong stockholders pressure. The goal of GC's Management is to transform the company from a local communication company to a worldwide enterprise within a three years frame by outsourcing and implementing an aggressive global marketing campaign. Trying to resolve its economic problems, GC's Management lack of vision generates new and difficult problems with its employees. In this paper, the writer will analyze problems and will look for solutions to these problems.Situation AnalysisIssue and Opportunity IdentificationThere are several issues that GC's management will face when trying to implement their turnaround plan:1- Union problems by dissatisfied and irritated employees. As the union learned of the planned reduction in the workforce, they have become justifiably agitated. GC's management did not take into account the theory of organizational behavior when they developed their growth strategy.2- Vanishing stockholder confidence. There are several reasons for the this low confidence; first, reduction of stock price in the past years, second, strong new competition, third, the need for financial resources to implement the growth strategy, and last, but not less the union unrest.3- Increased competition. The cable companies entering GC market.4- Cultural differences. As GC enters, the global markets Global Communications may encounter cultural issues that they have not yet addressed. Katrina Heinz, CEO habituated to deal with European Unions and does not research well about USA Unions way of acting is another cultural issue.5- Retention key employees. These employees may view GC as a sinking ship if management deals with Union's problems incorrectly. Employees that have the ability to find other employment with companies they view as more stable could leave unless enticed to stay through some sort of incentive.Stakeholder Perspectives/Ethical DilemmasPeople who have different stakes and perspectives in a decision related to the expenditure of scarce resources should have a voice in the decision process. In most cases, involving them in the process and working through the differences makes it more likely that they will be committed to the decision outcome, even if it is not the one they favored. (Gomez-Mejia, 2002, p. 210)In the GC scenario, an ethical dilemma occurs because of management's decision to cut costs and outsource services. This implies laying-off local employees and entering a contractual breach with the Union....

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