Analysis and Problems of Global Communications

The unfinished expansion of orbiculate Communications into the international orbital cavity has signifi so-and-sot implications, whatever(prenominal) positive and negative, for the corporation. Although the guild is going through a difficult measure at the present, with stock depreciations, a wishing of innovation, and pending layoffs, the potential for growth and for increased profitability with the refreshed direction elect by the companys executives is very real.If world-wide Communications tidy sum look at the challenges at a time confront it, scoop out advantage of the opportunities which be usable, and at the same time balance the needs of competing groups of stakeholders, it can realize several(prenominal) of its long-term goals as outlined later in this paper. Diminishing returns across the entire telecommunications diligence have negatively affected the stock and profitability of spheric Communications. high-spirited amounts of competition from companies worldwide have diluted the market place as healthful as draw outed a wide range of features that Global Communications does not currently provide.Small providers offer specialized work, and larger multinationals offer disdain prices and more competitive service choices. Global Communications has chosen to address this problem by simultaneously moveing to cut cost while expanding internationally their primary method of achieving these immediate goals is through closing some internal call centers and opening new centers overseas. The employees union has obvious problems with this strategy of layoffs and outsourcing, and has questi unrivalledd Global Communications loyalty to its workers.The company faces significant problems, both fiscally and intangible issues such(prenominal) as employee loyalty. The first of these issues is the declining price of Global Communications stock, presumably payable to the increased amount of competition in the field. Such a scorn in overall pr ofitability is the most pressing problem facing the company however, it is in like manner the broadest in that several more specific problems put up to this overall issue. One of the contributing factors is the need for new services and innovations in research and development.Such innovations require capital and financial resources, which relates to the problem of declining agency among stockholders, who are wondering if they industry can recover from the competitive federal agency in which it currently finds itself. The problem of stockholder confidence therefore contributes to the lack of currency available for innovations and research, meaning that the company must(prenominal) find a way to increase profits without depending on stockholder confidence. The initial attempt to address these financial issues, outsourcing many parentages to Ireland and India, has also created more problems for Global.The employee union feels betrayed and is grim legal satisfy regarding the lay offs. Additionally, the reality relations issue regarding this outsourcing is an important unrivalled for Global to address in order to pr razet a public backlash in response to the outsourcing and union-relations issues. Despite the many problems facing Global, several opportunities exist for the company to grow and become as profitable as it was during the previous era. There is an immediate opportunity available to lower the costs of labor facing the company by utilizing the outsourcing plan and the labor available overseas.Such an action testament free up company resources to be spent on research and development of new services and products, which will rebuild the base of Global Communications customers through the many services offered. Additionally, such an expansion in services will increase the market share for Global among small business owners, peerless of the companys overall goals, and offer the opportunity to reinforce a public perception of Global as one of the lea ders in telecommunications technology.Besides these profitability issues, there is an opportunity to establish new norms regarding the union and employee relations within Global. Perhaps an ceremonious plan of communication or route of information dissemination can be created, and career counseling and training could be offered for the employees who were laid off, assist re-establish the public and in-company perception of Global. The most obvious opportunity for Global is also the broadest the chance for the company to grow and return to previous years profitability is one that exists in the current atmosphere of change.Global leaders must take advantage of the many opportunities to change the company, its relationships, and its products and technology as soon as manageable. Stakeholder Perspectives/Ethical Dilemmas There are several groups of stakeholders in this discussion from the individual stockholders to the union members to the highest executives, the different groups al l have different priorities in the Global restructuring.Stockholders have at heart the long-term profitability and growth of the company, equivalent to the priority of global executives to see the company grow and profit overall. different groups, notably the employees and union representatives, have as their first priority the job security and salary of employees as their first priority the relationship with focal point and the pending layoffs are more important to these groups than profitability or growth.Finally, the executives in the U. S. ave more concern over these job cuts than do the global executives, since they are the ones who will be most adversely affected by the layoffs and outsourcing. The try between these groups to have their own needs prioritized represents an ethical dilemma for Global the negative affects of the layoffs must be weighed against the overall survival of the company the disadvantage to individual employees and public perception must be weighed a gainst continuing Globals typeset as an innovator and industry leader.Global Communications and the employees union can both utility from the increased profitability which will happen as a result of the outsourcing and shift in services offered in the long-term, both groups can work to create benefit and profit for individual stockholders as well as company executives and management. This long-term benefit will to boot give Global employees greater job security.The progress of Global toward the situations possible by the many opportunities available to it can be measured through several objective methods. One that is mentioned in the 3/2/04 memoranda is a cover goal of reducing costs by 40%. Such a goal will naturally benefit the company based on the reduction of cost and increase of profits. Additionally, a concrete goal to resolve the issues with the employees union without legal or governmental action would be an excellent way to re-establish the relationship between the compa ny and the union. some other measurable goal would be to return the stock price to a certain level, for example, that of the previously profitably $28/share. Global Communications faces some immediate and important problems, such as decreased profitability, decreased stockholder confidence, pending layoffs and the public-relations issues which accompany them, and increased competition within the telecommunications industry which requires new innovations and development.Despite these immediate problems, there are many opportunities for Global to benefit from its current situation it can take advantage of the chance to sign on costs by outsourcing and then increase research and development with those funds it can re-negotiate the relationship with its employees union to a more beneficial one for both parties and it can remodel itself as a modern, cutting-edge contention in the field of telecommunications.Such opportunities can benefit all stakeholders in Global, from the individual stockholders to employees to global executives, by strengthening the financial and community/ affable situations of the company. Although the implementation of these changes may be uncomfortable at times and even immediately painful for several groups (the employees union, for example), the overall benefit for everyone involved must be kept in mind. Long-term goals can be utilise to track the companys progress toward achieving its end goal of returning to an innovating, profitable arranging