Problem Solution: Global Communications
Problem Solution: Global Communications
Desperate to regain the confidence in the telecommunications industry, and in return, increase the value of their company, Global Communications needs to develop a plan to compete in the telecommunication industry. They must determine how technology will grow in the future, attempt to corner the market, and then provide service for those products. In an attempt to reduce costs they may need to consider moving part of the operations overseas to countries with better technology, but lower wages. However, they must also find a way to retain 1000 of their current employees to sell and service the products they currently have.
Situation Analysis
Issue and Opportunity Identification
The competition and diversification from cable companies for local, long distance, and international markets of telecommunications has greatly increased therefore causing the revenue and stock value of Global Communications to fall over the last three years. In their first attempt to attempt to increase revenue they negotiated with the union to reduce education and health benefits, therefore reducing their costs.
Stakeholder Perspectives/Ethical Dilemmas
Katrina Heinz was hired as the Chief Executive Officer. Her primary objective is to increase the revenue and profits of Global Communications. Since she has only been with the company a short time she is not concerned with the feelings or being loyal to the current employees and sees that there are better-trained, cheaper employees overseas. By moving the call centers to India and Ireland she can begin to cuts costs. Not only will the wages be lower, they can save money by not having to educate their employees on the new technology.
Sy Rodriguez is the Executive Vice President of Consumer Marketing and Sales. He is in agreement of the move but is concerned for the well fare of the employees who have to be cut as well as the negative public...
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