Problem Solution: Global Communications
Problem Solution: Global Communications
Global Communications is, one of many, telecommunications companies that have experienced a decrease in profits but is trying to stay competitive with other global markets. Over the last three years they have lost the support of the shareholders which resulted in a 50% decrease in share value. To reverse this negative outcome, Global Communication’s new chief executive, Katrina Heinz proposed a new two-pronged aggressive approach with a support of a few senior company leaders. The decision accomplished increased profits and introduced new technology, but also blindsided the Technologies Union to create a serious grievance with the union workers. The senior leadership team’s plan included growth with the introduction of new services, and an alliance with a satellite provider to offer video services and anytime internet access. The second part of the plan included cost-cutting measures, which included downsizing local domestic call centers and outsourcing jobs to India and Ireland where the company could reduce unit cost up to 40%. Additionally, the employees who would survive the downsizing would receive a 10% cut in salary.
Global Communication CEO’s aggressive leadership and communication style has led the team to distributive negotiations, aggressive communication and non-programmed decision making. This paper highlights solutions to the problems that Global Communications has endured, and the solution needed to be employed to reverse the compounding problem.
Situation Analysis
Issue and Opportunity Identification
Global Communications implemented the cost-cutting plan through the utilization of an aggressive, win-lose non-programmed strategy. Global Communications saw the plan as a significant improvement, an opportunity to decrease expenses that result in a profit increase. Since Global Communications knew the union would not buy in on the plan after already agreeing to a 20%...
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