Problem Solution: Global Communications
Global Communications (GC) is a telecommunication company under tremendous economic pressure just like other telecommunication companies. Its stock value has diminished drastically at over 50% which creats doubt in the stockholdersand thefuture of the company is being questioned. GC decided to take an aggressive approach to solve this problem by outsourcing some of their technical call centers department to Ireland and India, without communicating it first to the union This will cause a lay-off of employees and cut salaries by 10% for those relocating. Of course this plan will not go well with the employees and the union who just gave up major benefits in the recent negotiation, are threatening to take legal action against GCs' new strategy. This paper will discuss the alternative solutions to GCs' problems, risk assessments for suggested alternative solutions, and the implementation plans to deal with the problems.
Situation Analysis
Issue and Opportunity Identification
There was too much competition in the Telecommunication industry. Local, long-distance and international markets are all competing for the same business. The company suffered a great deal at the hands of the cable companies, who stepped in to provide complete solutions incorporating computers, television, and plain old telephone services. Stockholders are experiencing diminishing returns and have doubts if GC will be able to recover. Their customers are demanding more technical sophistication from their sales people. GC plans to cut cost and outsource their technical call centers to india and ireland. Outsourcing will save the company money and make them more competitive because of their international status.This in turnwill make them meet their goal of globalization . but have a gap in communication with the union.which makes the situation complex.
Stakeholder Perspectives/Ethical Dilemmas
Global Communications' management infringed on the rights of their technology workers union by not involving the union in the decision making process, and the union is now threatening to take legal actions against Global Communications. Global Communications also faces another dilemma based on their decision to outsource. GC has always been known caring for her employees, and placing a great value on them also. However by carrying out their outsourcing strategy, employee's morale will at an all-time low because both the union workers and the company's employees now face either job losses or a salary cut.
Global communications seems to have stepped on too many toes, hence there is bound to be conflict. There is conflict between the union workers and the leadership team, and there is also conflict between her employees and the leadership team too.
Occasionally, management strife and issues will occur because basic human nature instinct calls for disagreements and social interferences. However, it depends on the upper level of management to deal with problems that occur in a timely and effective manner that benefits all parties involved. There are a number of reasons that management discrepancies may occur, with the leading being various attitude problems. If team members feel underappreciated or taken advantage of they will show their disgruntled feelings, and it can cause serious issues if not handled immediately. The second are communication issues, ...
Conflict is and will always be something that everyone has to experience, and they experience it because we are all-different and have different beliefs. Some of the sources of conflict that exist in Bridget’s organization is the differences over interpretation facts, behavioral expectation, and conflicts with the customers, customer’s satisfaction. The general manager such as Issa tends to interpret things wrong. When Bridget wishes to do the best for Pollo Campero Issa, always pinpoints to look like Bridget’s negotiation is always wrong. Bridget has always said that although Issa always makes her feel less of a person Bridget doesn’t allow it to affect her. Like Bridget said at least she has the support of employees. Many employees and other managers who know Bridget know that she is a calm person and someone to trust especially because she has demonstrated since the first day of employment. She explained that in order to manage conflict you have to be worthy within you and not letting anyone make you less will make you value and love yourself more. Bridget said “do not fear conflict rather embrace it”, different conflicts arise everyday for example the customer service conflict, but the ability to recognize and understand the nature of conflict and bring a swift of resolution makes Bridget a good
I believe that Global Communications did not take their consideration into the customer service side of the business. In my opinion, what lead up to Global Communications being in this situation and the stocks decreasing and put the company in the red was due to the bad customer service which caused them to look at the lay-offs and going overseas for lower wages.
The economic problem was that WorldCom had a vast supply in telecommunications capacity that emerged in the 1990s, as the industry rushed to build fibre optic networks and other infrastructure based on overly optimistic projections of Internet growth (Lyke and Jickling, 2002)
In that case, unions have already blamed the fiasco. That is because the fiasco make the decision to outsource much of the company’s IT jobs, as Indian staff are paid little compared with their British counterparts.
Because Brazil problems should have been addressed prior to becoming a MNC in that country and in that respect MNCs should have consider both macro and micro risks of that country to minimize any risks with any operations in a developing or emerging economies. Risks are high and expected; so are high returns and long term potential. Brazil offers advancement as far as market and expansion through neighboring countries and has the easiest entry than other South American Countries. Therefore, both BellSouth and AES should consider the government policies of Brazil by meeting their concerns. By adjusting their strategies MNCs can use various techniques (i.e. integrative, protective, defensive and
As more companies expand their business globally, they are seeing more opportunities and an increased set of threats to the market. Threats like war, political revolutions, new currencies, and natural disasters can affect growth and political stability throughout the world, so in order to successfully compete in the international market more companies are faced with the decision of relocating part of their operation offshore. This paper will address what key elements companies in this situation need to address, such as, quality of customer service provided, security of confidential information, and the possibilities of cost savings, in order to be sure that outsourcing is the best solution for their company.
Communication is the key to having a successful business. A company must be able communicate the overall plan and future goals to their employees so the employees can support the organizations goals. Global Communication's first issue was the lack of communication to the union about their need to enter international markets for the company to expand. The second issue was also a lack of communication to the union about their plans to outsource the technical call center to India and Ireland, which would in turn affect the employee's job status. They should have contacted the union president and furnished their goals to them before moving forward. This would have opened up the communication process and not left the union workers in the dark.
British Telecom as an organization realized that there is a need to develop skill set and train the internal resources. There were tough calls to be taken on letting- go a few employees. In the past there had been several attempts towards reorganization of the internal structure, hence this time the initiative needed to be all the
Global Communications feels the pressures of the industries with trying to keep up with its competitors and watching its stock prices fall. Yet the stockholders are giving them a lot of pressure to correct the problem. They need to offer better services than what their competitors are providing to their customers. This paper will discuss the background, the problem, and the end goals.
Global Communications is a telecommunications company that has been for over 25 years. The company is a part of a growing and competitive industry. Due to the competition, Global Communications stock has declined and company officials need to come up with a plan to increase profits or file bankruptcy or close its doors for good.
The problems of outsourcing are it has immediate and constant affect on the unemployment ra...
Global Communications (GC) organization has recently been through numerous troubles detrimental to its primary functions. Global Communication is a telecommunication company. Due to current economic conditions, telecommunications organizations are struggling to keep up with other industries. Their stock prices have fallen 50 % over a three-year period. The company has fixed costs that cannot be met, due to its lack of operating capital. Cost cuts made by the company include cutting healthcare and education benefits. Employee retention is another governing factor at the organization. The organizations should obtain and maintain a comprehensive understanding of cultural diversity within the workforce. Global Communications had to establish an appropriate benchmark of performance; therefore, the company will know when goals are not met. A significant increase in the efforts to develop the proposed globalization campaign perspective will provide alternative solutions to current organizational predicaments.
One of the major sources of the conflicts, regarding to the given case, is incompatible goals: “the new executives clashed with the current executives regarding business strategy” another evidence for that is that the CEO says they 'ended up with an old team and a new team and they weren't on the same wavelength'.
Industrial Conflict is a broad and complex topic and conflicts may arise from many diverse issues resulting hostile acts by employers and employees.