Analysis and Problems of Global Communications

The pending amplification of international Communications into the international atomic number 18na has signifi gouget implications, both positive and negative, for the corporation. Although the company is going finished a difficult time at the present, with stock depreciations, a lack of innovation, and pending layoffs, the potential for increase and for increased valueability with the new direction chosen by the companys executives is very real.If world(prenominal) Communications can address the challenges immediately lining it, take advantage of the opportunities which are available, and at the same time rest period the need of competing groups of stakeholders, it can realize several of its long-term terminals as outlined later in this paper. decrease returns across the entire telecommunications exertion have negatively affected the stock and positiveness of Global Communications. spendthrift amounts of competition from companies world capacious have diluted the mark et as well as provideed a wide range of features that Global Communications does not currently provide.Small providers oblation specialized operate, and larger multinationals offer lower prices and more competitive service choices. Global Communications has chosen to address this problem by simultaneously attempting to cut costs while expanding internationally their primary method of achieving these immediate intents is through apogee some domestic call centers and opening new centers overseas. The employees totality has obvious problems with this strategy of layoffs and outsourcing, and has questi 1d Global Communications inscription to its guideers.The company faces significant problems, both fiscally and intangible issues such as employee loyalty. The first of these issues is the declining price of Global Communications stock, presumably due to the increased amount of competition in the field. Such a even out in overall profitability is the most pressing problem facing t he company however, it is as well as the broadest in that several more specific problems contribute to this overall issue. One of the contributing factors is the need for new service and innovations in research and development.Such innovations require capital and financial resources, which relates to the problem of declining cartel among stockholders, who are enquire if they industry can recover from the competitive situation in which it currently finds itself. The problem of stockholder confidence therefore contributes to the lack of funds available for innovations and research, meaning that the company must find a flair to increase profits without depending on stockholder confidence. The initial attempt to address these financial issues, outsourcing many jobs to Ireland and India, has also created more problems for Global.The employee union feels betrayed and is threatening legal action regarding the layoffs. Additionally, the public relations issue regarding this outsourcing is an important one for Global to address in order to prevent a public backlash in result to the outsourcing and union-relations issues. Despite the many problems facing Global, several opportunities exist for the company to grow and become as profitable as it was during the previous era. There is an immediate fortune available to lower the costs of labor facing the company by utilizing the outsourcing plan and the labor available overseas.Such an action leave free up company resources to be spent on research and development of new services and products, which will reconstruct the base of Global Communications customers through the many services offered. Additionally, such an expansion in services will increase the market share for Global among small business owners, one of the companys overall goals, and offer the opportunity to reinforce a public perception of Global as one of the leaders in telecommunications engine room.Besides these profitability issues, there is an opport unity to establish new norms regarding the union and employee relations within Global. maybe an established plan of communication or route of information dissemination can be created, and move counseling and training could be offered for the employees who were laid off, helping re-establish the public and in-company perception of Global. The most obvious opportunity for Global is also the broadest the chance for the company to grow and return to previous years profitability is one that exists in the current atmosphere of change.Global leaders must take advantage of the many opportunities to change the company, its relationships, and its products and technology as soon as possible. Stakeholder Perspectives/Ethical Dilemmas There are several groups of stakeholders in this discussion from the somebody stockholders to the union members to the highest executives, the different groups all have different priorities in the Global restructuring.Stockholders have at sum total the long-term profitability and growth of the company, similar to the priority of globose executives to see the company grow and profit overall. Other groups, notably the employees and union representatives, have as their first priority the job security and net income of employees as their first priority the relationship with management and the pending layoffs are more important to these groups than profitability or growth.Finally, the executives in the U. S. ave more concern over these job cuts than do the global executives, since they are the ones who will be most adversely affected by the layoffs and outsourcing. The struggle between these groups to have their own needs prioritized represents an ethical dilemma for Global the negative affects of the layoffs must be weighed against the overall survival of the company the evil to individual employees and public perception must be weighed against continuing Globals position as an innovator and industry leader.Global Communications and the emp loyees union can both benefit from the increased profitability which will go by as a result of the outsourcing and shift in services offered in the long-term, both groups can work to create benefit and profit for individual stockholders as well as company executives and management. This long-term benefit will additionally give Global employees greater job security.The progress of Global toward the situations possible by the many opportunities available to it can be measured through several objective methods. One that is mentioned in the 3/2/04 memo is a concrete goal of reducing costs by 40%. Such a goal will naturally benefit the company based on the step-down of cost and increase of profits. Additionally, a concrete goal to resolve the issues with the employees union without legal or governmental action would be an excellent way to re-establish the relationship between the company and the union.Another measurable goal would be to return the stock price to a certain level, for e xample, that of the previously profitably $28/share. Global Communications faces some immediate and important problems, such as decreased profitability, decreased stockholder confidence, pending layoffs and the public-relations issues which accompany them, and increased competition within the telecommunications industry which requires new innovations and development.Despite these immediate problems, there are many opportunities for Global to benefit from its current situation it can take advantage of the chance to dilute costs by outsourcing and then increase research and development with those funds it can re-negotiate the relationship with its employees union to a more beneficial one for both parties and it can remodel itself as a modern, vanguard competitor in the field of telecommunications.Such opportunities can benefit all stakeholders in Global, from the individual stockholders to employees to global executives, by strengthening the financial and community/social situations of the company. Although the implementation of these changes may be uncomfortable at times and even immediately painful for several groups (the employees union, for example), the overall benefit for everyone involved must be kept in mind. Long-term goals can be used to track the companys progress toward achieving its end goal of returning to an innovating, profitable organization