Problem Solution: Global Communications
Discussions of globalization and increasing competition within the telecommunications industry, Global Communications is suffering at the hands of economic pressure. During the past three years their stock has decreased more that 50% and stockholders are not pleased with Global Communications current market position.
Recently Global Communications has decided to outsource their call centers overseas, which will result in maximum layoffs and potential legal battles with the union. This analysis will look at Global Communications current situation, stakeholder perspectives, and their issues and opportunities. The conclusion will analyze end state goals and future vision of Global Communications.
Situation Analysis
Issue and Opportunity Identification
Global Communications has felt the pressures of economic decline due to competition in the telecommunications industry. "During the early nineties, forecasters predicted that the telecommunications industry would grow rapidly with the expansion of internet use," (Litan & Noll, 2004). In 1996 a telecommunications act was passed to end monopolies in the local market but it provided opportunities so already established firms could join the long distance market. Global Communications stock traded at $28 per share three years ago, now the stock is valued at $ 11 per share. Stockholders are disappointed with diminishing returns and are uncertain of Global Communications ability to recover. The leadership team has taken an aggressive approach, by developing plans to restructure Global's current financial status. The leadership team plans to attain growth will the induction of new products that will be made available to small businesse ...