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Submitted by seahawk10 on December 18, 2006
Category: Technology
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Problem Solution: Global Communications
MBA 500
University of Phoenix
Problem Solution: Global Communications
Global Communications (GC) finds itself at a crossroads and must act quickly to solve the current dilemma. GC has seen it's revenues dip and due to intense competition in the industry and the stock price has dipped from a high of $28 three years ago to it's current price of $11 a share. The management group has decided that it must act now to increase revenue by introducing new services through partners and reduce costs by outsourcing call centers currently hosted in the United States overseas to India and Ireland. But management did not involve one of it's key stakeholders, the Technology Workers Union, in the decision process and that group is now threatening to take legal action. With many workers faced with either job losses or a reduction in salary, employee morale is at an all-time low.
Describe the Situation
Issue and Opportunity Identification
There is too much competition in the telecommunications industry and GC does not stand out as unique. Cable companies and other telecommunication providers are all trying to reach the same market. Wall Street is not looking favorably on the industry as a whole and coupled with GC low earnings has caused the company's stock price to drop. To complicate matters the union is concerned about the plans to reduce costs by outsourcing their call centers to cheaper sources of labor in foreign countries. If they take legal action it could cast a cloud over the company as a whole causing it's stock price to continue to languish.
GC is focused on growth through the introduction of new services, focused on small businesses and consumers. They are partnering up with a satellite company to offer video services. They are also working with a wireless provider to offer Internet access using wireless telephone and PC cards. If the stock market...
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