Situation Analysis and Problem Statement
The competitive nature of the business world we live in has driven many telecommunication companies into making less than desirable profits. These companies face competition from all over the globe. All these companies are competing for the local and long distance markets, as well as the internet. With the introduction of cable and internet companies into the mix of telecommunications in recent years, the market is more competitive than ever. Undeniably, the pressure from other companies has caused one of the telecommunications companies, Global Communications to rethink their approach to the market.
Situation Background (Step 1)
Global Communications is a telecommunications company that has seen the value of its stock decrease more than 50% over 3 years from $28 to today's value of $11. With all the competition they have, they must find ways to increase the stockholder's confidence and bring the company back to the economic prosperity they once showed. They are unable to waste any more time and need to make changes now.
Global Communications established a plan to work their way back up the ranks. First, through the introduction of new services to its small business and consumer customers and an alliance with a satellite provider to produce video and broadband services, Global Communications will be able to compete in the global market. In addition, they are looking to a cost-cutting initiative to improve profits. As a result, making this plan work will have many consequences. Nevertheless, showing the benefits of this plan outweighing the consequences might be the hardest part.
Issue Identification
There are five i ...