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Submitted by Chadsnana on June 25, 2007
Category: Miscellaneous
Words: 1760 | Pages: 8
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Global Communications
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Global Communications (GC) once enjoyed profitability and an increased stock price. Recently, the company has been faced with declining revenues and increased expenses. A new CEO was recently appointed to help turn the company around. Her vision for the company was not communicated well. The investment community, its customers, employees, and labor union was caught off –guard by the company's decision to outsource its customer service thereby displacing many workers. GC has lost credibility. The company needs to look within to determine what causes its current problems and create a vision for the future.
Issue and Opportunity Identification
Diminishing returns
Global Communications and the telecom industry as a whole are in a state of decline. Stockholders are concerned about diminishing returns on investment and the industry's ability to rebound.
Industries do not fail overnight. GC Management has an opportunity to restore investor confidence by analyzing what went wrong during the period of slow-decline and what corrective measures must be taken to restore the company to profitability. ESI Horizons Newsletter provides a model for restoring the company in its article Saving Trouble Projects: Five Steps to Rapid Recovery, (2007). Below is an adaptation:
1) Define the mission:
a) Define goals in detail.
b) Understand cost versus benefits.
c) Determine priorities.
d) Devise a written plan.
2) Develop the plan:
a) Identify critical documentation that needs to be reviewed and analyzed
b) Identify stakeholders and conduct interviews.
c) Establish a team for the recovery effort.
3) Assess current state:
a) Determine status of the company and industry.
b) Identify threats, opportunities, and problems.
c) Learn about competition and potential new entries to the market.
4) Develop the recovery plan:
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