'Analysis and Problems of Global Communications\r'

'The pending expansion of globose communication theory into the international atomic number 18na has signifi put forwardt implications, both despotic and negative, for the corporation. Although the c totallyer is going through a uncorrectable time at the present, with stock up depreciations, a escape of innovation, and pending layoffs, the potential for pay backth and for add-ond lucrativeness with the parvenue direction elect by the alliances exe thinives is really real.\r\nIf orbicular communications dejection manoeuvre the challenges directly face up it, involve favour of the opportunities which are ready(prenominal), and at the same time balance the needs of competing groups of stakeholders, it can realize around(prenominal) of its long-term goals as sketch later in this paper. Diminishing supplys across the full telecommunications industry have negatively affected the stock and advantageousness of globular Communications. Excessive amounts of competit ion from companies cosmopolitan have diluted the market as rise as proffered a wide range of features that world(a) Communications does not in short provide.\r\nSmall providers offer specialized services, and larger multinationals offer start out prices and to a greater extent competitive service choices. Global Communications has chosen to head this line by simultaneously attempting to cut costs while expanding internationally; their primary system of achieving these immediate goals is through closing some national call centers and opening new centers overseas. The employees yoke has self-ex objectatory problems with this strategy of layoffs and outsourcing, and has questioned Global Communications loyalty to its workers.\r\nThe company faces square problems, both fiscally and intangible issues much(prenominal) as employee loyalty. The for the first time of these issues is the declining price of Global Communications stock, presumably due to the change magnitude am ount of competition in the field. Such a decline in boilersuit lucrativeness is the more or less pressing problem facing the company; however, it is to a fault the broadest in that some(prenominal) more specific problems contribute to this general issue. One of the lend factors is the need for new services and innovations in query and development.\r\nSuch innovations require capital and financial resources, which relates to the problem of declining confidence among stockholders, who are wondering if they industry can recover from the competitive situation in which it currently finds itself. The problem of stockholder confidence therefore contributes to the overlook of pecuniary resource available for innovations and research, meaning that the company essential find a way to change magnitude moolah without depending on stockholder confidence. The initial attempt to address these financial issues, outsourcing some jobs to Ireland and India, has also created more problems fo r Global.\r\nThe employee kernel feels betrayed and is threatening legal fulfil regarding the layoffs. Additionally, the familiar relations issue regarding this outsourcing is an important one for Global to address in order to pr level offt a human beings backlash in response to the outsourcing and total-relations issues. contempt the many problems facing Global, several opportunities exist for the company to grow and become as moneymaking as it was during the preceding 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.\r\nSuch an action will 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 demarcation owners, one of the com panys overall goals, and offer the opportunity to pay back a public acquaintance of Global as one of the leaders in telecommunications technology.\r\nBesides these profitability issues, there is an opportunity to establish new norms regarding the union and employee relations within Global. Perhaps an established plan of communication or route of information dispersal can be created, and career counseling and learning could be offered for the employees who were laid off, helping 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 front years profitability is one that exists in the current aviation of change.\r\nGlobal leaders must take advantage of the many opportunities to change the company, its relationships, and its products and technology as soon as possible. Stakeholder Perspectives/Ethical Dilemmas There are several groups of stakeholders in this discus sion; from the individual stockholders to the union members to the highest executives, the varied groups all have different priorities in the Global restructuring.\r\nStockholders have at heart the long-term profitability and growth of the company, similar to the precedence of global executives to canvass the company grow and profit overall. Other 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 management and the pending layoffs are more important to these groups than profitability or growth.\r\nFinally, 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 struggle amid these groups to have their own needs prioritized represents an ethical predicament for Global; the negative affects of the layoffs must be weighed aga inst the overall survival of the company; the detriment to individual employees and public perception must be weighed against continuing Globals adjust as an innovator and industry leader.\r\nGlobal Communications and the employees union can both make headway from the increase 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 returns 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.\r\nThe betterment 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 memo is a concrete goal of minify 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 th e employees union without legal or governmental action would be an excellent way to re-establish the relationship between the company and the union.\r\nAnother 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 decrease 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.\r\nDespite these immediate problems, there are many opportunities for Global to benefit from its current situation; it can take advantage of the chance to reduce 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 modify itself as a modern, cu tting-edge competitor in the field of telecommunications.\r\nSuch opportunities can benefit all stakeholders in Global, from the individual stockholders to employees to global executives, by change the financial and community/social 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 used to drop back the companys progress toward achieving its end goal of returning to an innovating, profitable organization\r\n'