Global Communications is competing in highly aggressive telecommunications market. They need to develop a business plan that will allow them not only to survive but become leading force in their industry. This paper will explore several possible alternatives and based on benefits and shortcomings of each, identify optimum solution.
Situation Analysis
Issue and Opportunity Identification
Global Communications like many others in telecommunications industry was facing increased competition which leads to diminishing stock values. Recovery plan was based mainly on cost cutting created by outsourcing to India and Ireland. Outsourcing is the main platform of their recovery plan and at the same time, the main source of issues and dissatisfaction within the company. Not only will it lead to significant job cuts and a decrease in salary, but the plan was not communicated properly to either employees or the union. In addition, negotiations that took place between Global’s executive management and union representatives afterwards were distributive in nature instead of integrative. “Distributive negotiation involves traditional win-lose thinking. Integrative negotiation calls for a progressive win-win strategy.” (Kinicki & Kreitner, 2003) This lead to even greater employee dissatisfaction, and it also severely impacted relationship between Global Communication and Technologies Workers Union.
Stakeholder Perspectives/Ethical Dilemmas
There are two main stakeholders identified in Global Communications scenario, these are Global Communications executive management and Technologies Workers Union. Interests of the two groups are directly opposing each other.
Global Communications executive management has responsibility towards the st ...