Global Communications needs to address the current state of the company’s financial position in the telecommunications industry by coming up with a plan that will reduce operations expenditures and expand the company’s consumer base and market share internationally, all without negatively impacting the company’s long-term relationships with key stakeholders, and while continuing to strive to deliver an ever increasing array of high-quality services and products to the company’s end users.
Situation Analysis
Issue and Opportunity Identification
As of late, interests in the telecommunications industry have been struggling in the stock market. Shareholders have been less than satisfied with dividends, and expressing more and more concern that the conditions may not improve. Global Communications, like other companies in the telecommunications industry, have been bearing the brunt of current economic conditions. In three years, $28 worth of shares in Global Communications stock dropped more than half of it’s value, to a mere $11 in recent trading.
In an attempt to address what is believed to be the underlying issue relating to the current stagnancy in telecommunications market, competitive saturation, Global Communications has devised a plan to rebound with a two-part strategy. The first part of the strategy entails forming partnerships with other telecommunications providers to create a sort of one-stop-shop where customers can get all of their telecommunications needs met by one service provider. The second part of the plan involves reducing operating costs to increase revenue, and to utilize the resources created through cost mitigation and partnership development to expand the company’s position further into the international arena.
The Senior Leadership ...