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Problem Solution: Global Communications
The telecommunications industry is slowing down, and Global Communications (GC) has to find ways to make money. Over the years, the company has seen a 50% loss in stock value, and the local and global markets growing around them. Global Communications needs a change.
The plan that senior management team has proposed to the board have been approved, and will now start to be implemented. Simply stated, the plan is to move the call centers overseas, and relocate jobs while expanding the local market with new service. However, with the rumors that have made it through the grapevine to the workers union, that plan might be hindered by lawsuits against Global Communications.
Situation Analysis
Issue and Opportunity Identification
With the deregulation of telecommunication companies, it has definitely created a problem for Global Communications. Three years ago, Global Communications was a top leader, stocks traded at $28 per share. Now the stock is trading around $11, and the Global Communication board is starting to get worried about the future of the company.
The major reason for this drop in company value is competition from other companies. Local, long-distance, and internal markets are now all competing for the same business. Now, even more people are able to provide communications as well. Internet companies and the cable companies are able to provide Voice over IP services to lower the cost of communications by using the existing internet network.
With the existing pressures that the company is facing, drastic measures had to be taken. Recently, Global Communications and the union agre ...