Gapanalysis Solution
Problem Solution: Global Communications
The telecommunication industry is increasingly becoming more competitive. Global Communications (GC) has fallen behind and has seen extensive loss in their stock value over the last three years. GC plans to reinvent themselves as a vital entity in the industry, by implementing a restructuring strategy that offers new communication solutions to small business and consumer customers, as well as, aggressive cost cutting methods. The restructuring and cost saving methods will result in relocating valuable employees to other call centers with a 10% pay decrease and a substantial amount of lost employment opportunities. The integrity of the company will be in question due to the inconsistencies that the outsourcing and layoffs bring to the “Our Edge is People” philosophy. Through improvement of their internal communications, GC will be able to rebuild a relationship with the employees and the union
Situation Analysis
Issue and Opportunity Identification
Over the last three years, Global Communication’s (GC) share value has depreciated 50% taking the worth from $28 to $11 a share. The telecommunication industry has grown into a tremendously competitive business avenue. In order for GC to continue to survive and thrive, they must adapt to the ever-changing needs of the consumer, implement cut costing procedures, and increase profitability.
By utilizing an aggressive approach for restructuring, Global Communication has an opportunity to become a competitive entity in the telecommunication industry. The two-pronged strategy is to offer a new complete line of services that will encompass not only telephones but also computers and television. GC will see a 40% reduction in the cost for handling calls, by moving the technical call centers to India and Ireland. The outsourcing of jobs, however, will result in the current homeland employees, to be relocated to other domestic call centers...
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