Topic > Situation Analysis and Problem Statement: Global Communications...

Situation Analysis and Problem Statement: Global Communications The scope of communications within a global business environment is critical due to how critical they have become and effective communications regarding company operations. Global Communications (GC), while believing it necessary to adopt a radical business strategy to remain competitive, appears to have relegated the importance of communication among its corporate stakeholders to a matter of convenience and platitude. GC is currently facing a capital loss of more than 50% in the stock market and faces growing competitive pressures from a host of smaller, more nimble competitors in the telecoms sector. To address these competitive pressures, GC and its management staff have devised a strategy whereby many of its call centers will be outsourced to both Ireland and India, resulting in the layoffs of a significant number of staff. Additionally, GC plans to partner with a satellite communications provider to move to wireless services and plans to realize savings of up to 40% per call by moving its technical call centers overseas. Identifying Problems and Opportunities The main issue for GC is whether doing so risks alienating the majority of the remaining employees with the threat of further layoffs and expected pay reductions for the remaining call center employees who will be retained. Clearly, while competitively attractive, this strategy risks impacting the company's operational integrity based on its stated belief that its employees represent one of its most valued competitive advantages. The opportunities are twofold for GC: 1) the value to the company in reducing some of its operating costs by 40% or more cannot be overstated, and 2) while perhaps believing it necessary to undertake such a strategy, GC's executive leadership had the opportunity to involve the union and its leadership in the decision-making process and allow them to understand the long-term need for some of these decisions.