Global Communication
Problem Solution: Global Communication Corporation
When a company is having financial crisis should all ideas and avenues be exhausted? How can a company decide on a final solution? Should the first idea be the final solution? Global Communication decided to follow the first idea and will upset employees and the union. Global Communication can find a way to increase stockholder value, provide a future for employees, cut costs and improve profitability by making appropriate organizational adjustments. However, this situation became extremely complex.
Situation Background (Step 1)
Too much competition in the local, long distance and international markets was discussed during the first meeting. Stock holders have diminishing returns and believe the industry might not be able to recover. Global communication is having financial trouble and will make a decision without first consulting with the union. Global Communication has created alliance with satellite providers to compete with local telephone and cable companies. Global Communication has also decided to lay off many employees and outsource their technical support call centers to India and Ireland.
Issue Identification
There were many issues considered before making a final decision. To reduce costs they can outsource. Downsizing domestic call centers and relocating technical support to Ireland and India was implemented. Second, the employees relocated would take a 10% salary cut and employees will be laid off. However, Global will not survive unless these drastic measures are taken. The Union does not believe all avenues were looked upon. How can this be positive and what opportunities exist?
Opportunity Identification
Although many employees will be laid off, several opportunities exist for the company. First, creating an alliance with a satellite provider to offer new video services and a satellite version of broadband. Second, partnering...
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