Global Communication – Problme SolutionEssay Preview: Global Communication – Problme SolutionReport this essayProblem Solution – Global Communications CorporationThomas DAmoreMMPBL 500Ken Edick23 Feb 2007Problem Solution: Global Communications CorporationProblems or challenges are an inevitable part of any business environment. Many business organizations have to make critical decisions on a routine or daily basis and most of these decisions are essential to their operations and may have a huge impact on their companys financial health. To effectively handle these problems, businesses have to adopt problem-solving models to assist them in identifying the problems, the available alternatives, assist in the implementation or execution of solutions, and generally serve as a guideline in problem-solving.
Using Global Communications (GC) as the subject of the case study will describe how a strategy was designed and implemented to assist the organization in identifying problems, establishing alternatives, identifying strengths and weaknesses, and selecting the most appropriate course of action. The paper will show how GC has arrived at the most optimal solution or solutions that would address all the organizational problems and attain all its business goals by applying the problem-solving model. Gaining an understanding of the companys background would provide a solid foundation needed in finding a resolution to the problems at hand.
Situation BackgroundDue to increased competition in the telecommunications industry, Global Communications has been struggling to maintain its market share. In the past three years, the company has seen a significant 50% depreciation in its stock value. In addition to increased competition in the telecommunications industry, the organization feels vulnerable from cable companies which recently started offering all-inclusive communications solutions. GC is currently ill-equipped to compete with cable and telephone companies that are offering complete packages for television, telephone, and computer communications. As a response to the situation, members of GC management team has formulated a strategic and aggressive approach which involves expansion of GCs service offerings and implementing cost-cutting measures.
The first part of the strategy involves creating an alliance with satellite providers in order for GC to expand its menu of services. GC hopes to start offering video services and satellite version of broadband internet services. In addition, GC hopes to offer remote internet access to its customers. By expanding its services, GC hopes that customers will find no need to switch companies since GC already provides an all-inclusive communications solution. Furthermore, the expansion will entice new customers to contact GC and potentially become customers. Global Communication is targeting small businesses and consumer customers with this service expansion. As a result of this expansion, GCs market share will become more stable, diverse, and more competitive than before.
The second part of the approach involves cost-cutting measures. After arduous negotiations with the Technologies Workers Union, GC was able to trim pay down by 10% and medical insurance and education benefits by 20%. The company further decided that cutting pay and benefits would not be sufficient; therefore, more serious action was needed. This came in the form of outsourcing technical call centers and other technical positions to India and Ireland. In addition, GC needed to increase technological sophistication which will allow them to gain entry in the global market. By outsourcing jobs to India and Ireland, the company will be able to achieve three of its goals, entry into the global market, an increase in technological sophistication, and a reduction in operating costs, specifically the cost of labor.
GCs board approved the measures to outsource the jobs without consulting and negotiating with the Workers Union. Besides the legal issues involved with the negotiation, GC has an added concern of deteriorating employee morale which may affect the companys productivity, attendance, and loyalty. The employees are critical to GCs success, only through employees cooperation can GC execute its business strategies to grow and succeed. In order for GC to have smooth transition and implementation of their growth initiatives, they have to perform an in-depth analysis of their situation, identify the issues and opportunities available, and implement the most appropriate course of action.
Issue IdentificationGC is presented with several issues or concerns, which the organization must address appropriately and in a timely manner. Global Communications main problem seems to be their struggling financial health. In the past three years, the companys market share has diminished by an astonishing 50%. This problem can be attributed to increased competition in the telecommunications industry and limited service offerings by GC making them uncompetitive. In addition, the cost of doing business, specifically labor, has been steadily increasing and affecting the companys profitability. In addition to poor financial health, GCs other problems include poor employee morale, a rift in the relationship with the union, a lack of technical sophistication, a non-diverse portfolio of services, and increased competition in the telecommunications industry.
In order to resolve these problems, GC has devised a few measures to correct these problems; unfortunately, these measures have resulted into second-tier problems. For instance, the poor employee morale is a result of Global Communications reduction in force, unfavorable compensation and benefit modification, and GCs announcement of outsourcing the jobs to India and Ireland. GCs employees and the union are extremely unhappy with GCs business methods. First, the workers and the union had to agree to a 10% pay cut and 20% benefits cut. After completing the negotiations with the Union, GC made an announcement that the company will outsource the jobs to India and Ireland. This announcement came as a full surprise to the employees and the union since GC failed to consult and communicate the decision to outsource with any representative from the union.
The employee in question then gave his account of the plan.
“We are going to work here the full time for Rs 4,500 (of compensation) until the year 2018. We are expecting it to go up to Rs 50,000 (of compensation) in September. We are going to pay a salary of Rs 100,000 to ensure that this number will continue for the foreseeable future on salary. Please note, the CEO and management will be there on September 5. The company is fully equipped to be an employer with the skills, culture, experience and capacity to handle these matters. The employees expect this. It is a job for the management. The company is in business to build and protect a strong culture and a culture of trust and trust will come from it,” he said.
The current union president, Lekha Prakash, also confirmed that the company has worked for a long time to implement the initiative, but it was a “tremendous struggle” to solve any issues.
“We have a complete experience: we have done our work quite consistently, are not stuck at the top with most management people. The issue is that our business will not be a lot better. As soon as the issue is resolved the morale of the company will rise significantly,” he said.
The CEO and management said that their company needs to have more than 500 full time and 18 part time workers. They noted that as soon as work gets done the management and personnel can now decide the cost of the process and allocate the investment.
The union asked for help reaching out to more unions of employees, to inform them of how they can start to take control.
The workers from the current union were asked if they could sign up to join a union.
“We hope to take this all to our hearts. We are very angry to see such a situation, for the working classes in Gujarat, where the state government is working so hard to raise the wages of the workers. We cannot let the problem go unanswered. One hundred and ten thousand people came to our factory on September 8, 2016 to give a collective voice and to say they want a change in government by the state and the people of Tamil Nadu. We hope to have a change of administration by next year by ensuring that this system as envisaged by the party is made work for workers and to make it work for everyone,” said Nirmala Prasad in the action.
An ILO worker spoke up to demand her government action regarding the union’s demands.
The employee in question then gave his account of the plan.
“We are going to work here the full time for Rs 4,500 (of compensation) until the year 2018. We are expecting it to go up to Rs 50,000 (of compensation) in September. We are going to pay a salary of Rs 100,000 to ensure that this number will continue for the foreseeable future on salary. Please note, the CEO and management will be there on September 5. The company is fully equipped to be an employer with the skills, culture, experience and capacity to handle these matters. The employees expect this. It is a job for the management. The company is in business to build and protect a strong culture and a culture of trust and trust will come from it,” he said.
The current union president, Lekha Prakash, also confirmed that the company has worked for a long time to implement the initiative, but it was a “tremendous struggle” to solve any issues.
“We have a complete experience: we have done our work quite consistently, are not stuck at the top with most management people. The issue is that our business will not be a lot better. As soon as the issue is resolved the morale of the company will rise significantly,” he said.
The CEO and management said that their company needs to have more than 500 full time and 18 part time workers. They noted that as soon as work gets done the management and personnel can now decide the cost of the process and allocate the investment.
The union asked for help reaching out to more unions of employees, to inform them of how they can start to take control.
The workers from the current union were asked if they could sign up to join a union.
“We hope to take this all to our hearts. We are very angry to see such a situation, for the working classes in Gujarat, where the state government is working so hard to raise the wages of the workers. We cannot let the problem go unanswered. One hundred and ten thousand people came to our factory on September 8, 2016 to give a collective voice and to say they want a change in government by the state and the people of Tamil Nadu. We hope to have a change of administration by next year by ensuring that this system as envisaged by the party is made work for workers and to make it work for everyone,” said Nirmala Prasad in the action.
An ILO worker spoke up to demand her government action regarding the union’s demands.
The employee in question then gave his account of the plan.
“We are going to work here the full time for Rs 4,500 (of compensation) until the year 2018. We are expecting it to go up to Rs 50,000 (of compensation) in September. We are going to pay a salary of Rs 100,000 to ensure that this number will continue for the foreseeable future on salary. Please note, the CEO and management will be there on September 5. The company is fully equipped to be an employer with the skills, culture, experience and capacity to handle these matters. The employees expect this. It is a job for the management. The company is in business to build and protect a strong culture and a culture of trust and trust will come from it,” he said.
The current union president, Lekha Prakash, also confirmed that the company has worked for a long time to implement the initiative, but it was a “tremendous struggle” to solve any issues.
“We have a complete experience: we have done our work quite consistently, are not stuck at the top with most management people. The issue is that our business will not be a lot better. As soon as the issue is resolved the morale of the company will rise significantly,” he said.
The CEO and management said that their company needs to have more than 500 full time and 18 part time workers. They noted that as soon as work gets done the management and personnel can now decide the cost of the process and allocate the investment.
The union asked for help reaching out to more unions of employees, to inform them of how they can start to take control.
The workers from the current union were asked if they could sign up to join a union.
“We hope to take this all to our hearts. We are very angry to see such a situation, for the working classes in Gujarat, where the state government is working so hard to raise the wages of the workers. We cannot let the problem go unanswered. One hundred and ten thousand people came to our factory on September 8, 2016 to give a collective voice and to say they want a change in government by the state and the people of Tamil Nadu. We hope to have a change of administration by next year by ensuring that this system as envisaged by the party is made work for workers and to make it work for everyone,” said Nirmala Prasad in the action.
An ILO worker spoke up to demand her government action regarding the union’s demands.
With all these issues or challenges facing GC, the organization must develop a strategy to address these