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Current problems of global communication
Current problems of global communication
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Gap Analysis: Global Communications
Global Communications has, in the past, been a large player in the telecommunications industry. Today Global Communications faces challenges from an over saturated market and new services to consumers. It must find a way to restore its place as an industry leader and raise the declining stock price. To do this Global will employ cost cutting strategies not seen in the industry before which will also lead to new challenges. Challenges to ethical questions, resources and the ability to adapt to an international market.(4)
Situation Analysis
Issue and Opportunity Identification
Evolution and change are constants in any industry. Telecommunications is no exception, it seems that telecommunications has to change, evolve and adapt as quickly as any other industry. Global Communications is currently in a market that requires change in order for it to survive the aggressive competition and the variety of services that are being offered by other companies within the industry.
Global Communications senior leadership has developed a plan to combat its declining stock price and make Global an industry leader. Global's plans include layoffs at North American call centers and new international call centers that reduce average cost per call by 40%. Global has also created alliances with strategic partners to expand the services that they offer. These plans will make Global an industry leader on a global scale and set a new standard for others to follow when considering international employment as a cost cutting tool.
These opportunities will also challenge Global's ability manage conflict and negotiations.(3) Managing communications barriers between the company's new international teams, deal with the ethical dilemma that they will face when restructuring and layoff employees. These issues and opportunities are critical when considering whether Global will succeed. If Global can effectively execute will set a new standard in the industry but if it can not use problem solving techniques: using tools, processes, and creative approaches it will not survive.(2) Global has obligations to share holders, employees, business partners and ethical standards of practice. (3)
Stakeholder Perspectives/Ethical Dilemmas
Global has set a plan in place for grow and cost cutting, in order to do this employees of one of it's North American call centers will lose their jobs due to the new international call centers. Some may be asked to stay but will do so at a pay decrease that would follow a decrease in benefits, recently agreed to by the workers union before they were aware of the layoffs.
Global ethical issues for Verizon would be global ethical risks, antitrust activity, internet security and privacy, issues with compensation and labor and the right to work. The global ethical risks that Verizon could encounter are the instability of working with foreign markets. The foreign market could have an unstable economy, social unrest or political instability.
Of particular importance is the deregulation of the telecommunications industry as mentioned in the act (“Implementation of the Telecommunications Act,” NTLA). This reflects a new thinking that service providers should not be limited by artificial and now antique regulatory categories but should be permitted to compete with each other in a robust marketplace that contains many diverse participants. Moreover the Act is evidence of governmental commitment to make sure that all citizens have access to advanced communication services at affordable prices through its “universal service” provisions even as competitive markets for the telecommunications industry expand. Prior to passage of this new Act, U.S. federal and state laws and a judicially established consent decree allowed some competition for certain services, most notably among long distance carriers. Universal service for basic telephony was a national objective, but one developed and shaped through federal and state regulations and case law (“Telecommunications Act of 1996,” Technology Law). The goal of universal service was referred to only in general terms in the Communications Act of 1934, the nation's basic telecommunications statute. The Telecommunications Act of 1996 among other things: (i) opens up competition by local telephone companies, long distance providers, and cable companies ...
Americatel is positioned within the small to mid-sized market in the telecommunications sector. However, their primary competitors Movistar and Claro compete within the large-sized market. With only 10% overall market share, Americatel has the potential to capture additional growth as the industry growth rate is growing at 6%. To accomplish this we recommend that Americatel own their position in the small to mid-sized market by capitalizing on their competitive advantage of providing superior customer service as well as leveraging new solutions to further drive customer satisfaction.
Years later, the Telecommunication Act of 1996 triggered dramatic changes in the competitive landscape. SBC Communications Inc. established itself as a global communications provider by acquiring Pacific Telesis Group and becoming the new AT&T. The merger of AT& T and BellSouth, along with the ownership consolidation of Cingular Wireless and YELLOWPAGES.COM, will speed convergence, competition and continued innovation in the communications and entertainment industry, creating new solutions for consumers and businesses and positioned to lead the industry in one of its most signifi...
General Motors is knocking on the door to world class business performance. Ohmae’s five stages of global operation support General Motors aspirations. From stage one to stage five there are significant differences to becoming a global organization. For instance, stage one, states that a company supports arm’s length customer export activity by a domestic company that links up with local and distributors to function. This stage represents the entry level global corporation. General Motors is at stage 4 of Ohmae’s five stages of becoming a global corporation, because it has exemplified the following traits: Systems and tools used globally not just at headquarters, R&D, Engineering and other business operations have a global focus, and all support functions are applied globally. (MFGO 601, WK. #2 Lecture Notes) An example of Ohmae’s, stage ...
Outsiders wondered how each company’s internal changes would affect their endless competitive battle in the industry. The case illustrates how global competitiveness depends on the organizational capability, the difficulty of overcoming deeply rooted administrative heritage, and the limitations of both classic multinational and global models.
Effective competition is widely seen as a key to the development of telecommunications services. The ability of new telecommunications networks to interconnect fairly and efficiently with existing networks is critical to the development of competition. AT&T has undergone numerous changes since its inception in the late 19th century. The McKinsey 7 S framework as applied by Pascale is recommended to manage the changes they are facing to adopt a greater competitive presence in the global economy. In conjunction with this framework, numerous other models were applied to analyse the global competitive position of AT&T. Recommendations for a revised strategy and direction for AT&T have been made throughout this document including two scenarios of how the telecommunications industry might develop towards 2000, while outlining the impact on AT&T.
With the proliferation of the internet international Business transactions are more common today than ever. Globalization is now a key factor when creating a business strategy for most companies whether they are small family own businesses or huge corporations. Globalization however does not just involve selling a product in other countries. There are legal and cultural concerns that must be addressed. The legal aspects are fairly simple because in most places the laws are spelled out. It's the local customs, and regional way of doing things that can be tricky. Research on globalization has shown that it is not an omnipotent, unidirectional force leveling everything in its path. Because a global culture does not exist, any search for it would be futile. It is more fruitful to instead focus on particular aspects of life that are indeed affected by the globalizing process. (1). In this new economy, as it has been in the past, it will be the people not the machines who will determine a company's success. Having an effective Human Resource Management team that effectively analyze your company's current and future personnel needs is key in any business organization.
How does this case illustrate the threats and opportunities facing global companies in developing their strategies?
Part of the reason for the absence of a truly global cellular company is because it is difficult for companies to keep up with the changing trends across the world, as consumers in different parts of the world demand different technologies and products.
The changes in the technological can influence many part of societies. When the AT&T Company introduce their new product and services which is wireless and wire line technology will effects occur primarily through the new products, processes, and materials. Thus, changes in technological also often can achieve higher market share and earn higher return because, newly emerging technology from AT&T could derive competitive advantages. For example, internet today becoming more remarkable capability to provide information easily, quickly, effectively, and also can create more value for customer in the future and to anticipate future trends.
Examine how a global company can delineate decision-making responsibility that balances a corporate code of conduct with regional cultural differences to achieve optimal business results.
We intend to exploit our leadership role by continuing to target and enter segments of the communications market that we believe will experience rapid growth or grow faster than the industry as a whole....
Labor laws, wage disparities, intense competition and fluctuating currency values are the challenges that are making organizations worldwide to compete in marketplace with products requiring a great deal of labor, and it is now getting harder for some of these organizations to maintain employees abroad. As Mello (p. 610) mentioned that a greater percentage of United States workforces are moving their operations abroad to developing nations like China and leaving an increasing number of United States domestic workers without employment. The foreign markets for the products and services are not the only things enticing these organizations to enter these global marketplaces. There are other reasons these companies are joining the global market arenas. For example, the foreign labor markets, this has attracted interest in many organizations to expand globally (Gersten, 1991). The labor force growth rates in developing nations alone will continue expanding by approximately 700 million people by the year 2010, while the United States labor force will continue to grow by only 25 million. This shows that United States’ growth rate will drop and the opportunities for productivity growth rate will increase in developing countries.
In conclusion, companies that seek to integrate into global markets usually encounter several problems because of the effect of globalization on business practices. The challenges originating from such integration is attributed to the differences in cultures in various societies across the globe. As evident in Google’s dilemma in China, there is no single set of universal ethics that are applicable to all settings and societies across the globe. Companies such as Google need to develop varying ethical standards that are relevant and appropriate to various nations and cultures in the world. This would enable the companies that are integrating into global markets to avoid ethical issues while maintaining effective business practices.