Situation Analysis and Problem Statement Global Communications is feeling the pressure of industries trying to keep up with its competitors and watching its stock prices fall. Yet shareholders are putting a lot of pressure on them to correct the problem. They must offer better services than their competitors offer to their customers. This document will discuss the context, problem and ultimate goals. Context of the Situation (Phase 1) The entire telecommunications industry has fallen on hard times due to the entry of cable companies into the competition, but global communications have been hit hard not only by increased competition but narrower profit margins , costs of doing business, and have realized that they need a new strategic plan, but they will need help implementing it. The problem isn't quite as obvious as you might think. It is easy to say that there is too much competition and that external entities are blamed for their ills. Ultimately, the real problem is GC's inability to compete effectively with new players in the market (e.g. cable companies). Often this is secondary to the inability to differentiate one's offering from that of the competition. It seems their attempt at differentiation was “Our Edge is People.” This has two obvious flaws. First, it conflicts with the apparent reality that their staff lack the technical skills to do the job. Second, differentiation must take the form of something that actually matters to customers. They've already identified the competitive points that seem to hurt them (new features, televisions, computers, phone service, etc.) and that has little to do with people. Outsourcing support jobs may improve the quality of staff, but unless it is a competitive issue, it may not have a significant effect beyond reducing costs. Identifying the Problem Maintain employee morale and prevent "brain drain" to competitors, this often occurs following layoffs.o Maintain a working relationship with the union and ensure Maria gets back in her boss's good graces. Maria appears to have a generally favorable attitude towards the company and may be important.o Differentiate their new offering from existing competing offerings. Adding 1000 new sales people won't sell a product that isn't attractive to the prospect.o Maintain cohesion among top managemento Convert proposed changes into profito Compete effectively more locally and globally... very different games.o Manage new partnerships effectively and profitably