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Global Communications Business Analysis
Situation Analysis and Problem Statement
This paper will examine the scenario pertaining to Global Communications. I will identify five issues and opportunities that surround this company. In addition, I will look from the perspective of the stakeholder and the interest, rights, or value each hold with this scenario as well as any ethical dilemmas that may have arisen. From there, I will provide a problem statement that will present opportunities for future consideration. Then, I will describe the end-state goals that I have identified. Finally, I will summarize my findings in the conclusion. In any situation analysis and problem statement, we must have some pertinent background information to understand the situation better. Let us take a closer look at the matter at hand.
Situation Background (Step 1)
Global Communication is part of the telecommunication’s industry. This is an industry that is rapidly becoming obsolete. Change is necessary if the company wishes to stay in business. Several factors play into why the company must use various strategical tactics in order to survive. Here a some of the issues that Global Communications must contend with.
Issue Identification
The obvious issue is that the field of telecommunications is on the decline. This is mainly due to more competition. Specific markets that can provide the service more efficiently and can offer incentives are more appealing to existing as well as potential customers. In order to maintain competitiveness, overhead may need to be reduced while upholding a certain level of productivity. This is in reference to Global Communications downsizing. This consist of layoffs, relocation of employees, pay cuts, and outsourcing. Each are delicate issues that the company would like to avoid yet none of them can be overlooked if the survival of the business is at stake. With the idea of outsourcing, another issue ties in heavily. That is the need for improvement in the international markets. Where outsourcing may be vital to decrease labor cost, also present is a need to establish a market base globally. With a great deal of focus around moving jobs domestically, an issue that could be detrimental to Global Communications’ plans is Union backlash. Initial interpretations and understandings of an agreement versus the current need for change in order for the company to grow, have left the union and its members feeling somewhat betrayed. Not being fully aware of what was to come has hindered what had been considered a good working relationship. To further complicate things, Global Communications insist on wanting the Union to make concessions such as reducing benefits like education to help ease some of the financial problems the company is facing. Despite the issues that Global Communication has to address, there are opportunities that are seen as prospering the company as a whole.
Opportunity Identification
The idea is for the company to be competitive and to flourish. One means to do this is to administer a three-year plan that will make Global Communications a global corporation. Cutting cost to improve profitability means more capital to reinvest back into the company. Decreasing overhead in domestic markets and implementing new call centers in India and Ireland are examples of opportunities for growth. Another opportunity is to provide new services in local and long distance domestic markets. This helps generate clientele of small businesses and consumer customers. In addition, partnering with a satellite (wireless) provider allows Global Communications to compete with local telephone and cable companies which otherwise may not have been able to match services with. Finally, Global Communications would be able to market itself more strategically from an international standpoint. With every opportunity that potentially exist for the company, there a specific perspectives and possible ethical dilemmas that exist for the individual stakeholders.
Stakeholder Perspectives/Ethical Dilemmas
The primary stakeholder is Global Communications. The reality is that if substantial changes are not made, there may not be a Global Communications. There is an interest and a right for the business to become a significant competitor. There has been approval for the outsourcing plan. With this approval comes the dilemma of selling this as a necessity to domestic employees. The company has to cut and save in specific areas to ensure that they are able to stay afloat, yet there should be some form of positive reinforcement to improve morale for the current workforce. Another primary stakeholder would be the Technologies Workers Union and the employees whom are represented. Their interest includes securing and maintaining employment for their members. The rights and value consist of being kept well informed, in a timely fashion of concerns that affect the company which ultimately affects the livelihoods of the workers. The ethical dilemma that the Union faces is that as they have tried to help the company by taking reductions in various benefits, this did not go over well with the membership. Now because of the status of the company more concessions are needed on the part of the Union. The Union has tried to collaborate with the company in an effort to save jobs and yet they have given up much to still have jobs threaten due to outsourcing. Small businesses and consumer customers have an interest that is mainly-based on obtaining the best services available that suit specific needs. Pertaining to a satellite provider, their interest coincides with those of Global Communications. The “partnership” can be used as an asset to further progression and growth of each subsidiary. In the case of these stakeholders, there does not appear to be any known ethical dilemmas to speak of. Finally, international markets have an interest and rights to gain profit shares globally as well as domestically. The dilemma; however, is to what degree do international markets concede to the agendas of the parent company? If their interest in them is primarily based on accessing cheaper labor, is it worth it from the standpoint of the new market? How can each stakeholder’s specific perspectives be turned into something positive for future consideration? Let’s look at the problem statement.
Problem Definition (Step 2)
Global Communications can become a global corporation through commitment to reinvest in its domestic workforce and markets while making adequate adjustments strategically to secure international markets. This statement is an opportunity statement because it recognizes the current employees and customers as notable assets to the future success of the company. It gives a sense of hope, self-worth, and dedication to their workers when efforts are made to grow the company from within. When branching out into foreign markets, by taking the necessary steps to assure that all vital cultural aspects are treated delicately and with sensitivity, the possibilities for a good, productive, working relationship is endless. From this opportunity statement, what goals can be realized?
End-State Goals (Step 3)
End-State goals for Global Communications are1) win back business of former customers while attracting new customers in various target markets. 2). Retrain domestic employees to be used in new areas that are vital to the change and success of the company.3). Maintain affiliation with wireless provider and continuous building of collective growth. 4). Rebuild a formidable working relationship with the Union. And 5). Expand into international markets. The ethical dilemma is that in order for these goals to be used to assess potential solutions, the Union must realize cuts and concessions may still occur, at least in the short-term, to allow the business to grow, which will eventually lead to more jobs, higher pay, and recovering some of the benefits previously taken away.
As society progresses and technology enhances, so must industries change for a future to exist. There is usually a reluctance or fear of change. Nevertheless, it is crucial for a business success. Global Communication and the Technologies Workers Union collectively should take into consideration the foundation of their industry, the people. “Affective organizational commitment (loyalty) refers to the employee’s emotional attachment to, identification with, and involvement in a particular organization” (Mcshane p.92). “Companies build loyalty through justice and support, some level of job security, organizational comprehension, employee involvement, and trust” (Mcshane p.92). Change may not be able to be stopped; however, both company and union, whom are primary stakeholders need to recognize that each carries a significant amount of obligation and respectability that is owed to one another. Reality is change. Further examination of that reality is that both sides need each other, to a certain degree to survive.
McShane, S.L. (2005). Organizational Behavior. (3rd Ed.), (p.92). New York: McGraw-Hill.