Submitted by Speler on 05/16/2009 03:26 PM Flag This Paper
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Introduction
Global Communications is facing a difficult time. A solution needs to be found to help the company now and to allow it to develop into an international business leader. The focus will be on improving communication in the company and with its stakeholders.
Situation Analysis
Issue and Opportunity Identification
The competition in the telecom business has increased a great deal . New players on the marked like cable television providers and the mix of old competitors make it hard for Global Communications to make the profits they need.
The stock market has lost trust in the telecommunications industry, the stock of Global Communications has had a deprecation of more than 50%.
To increase profitability and secure the future of Global Communications the senior management team has setup an action plan. This consists of providing new services to old customers, which involves a more sophisticated services pack. To reach new customers and markets they want to globalize.
Cost reduction is another part of the plan this will be done by moving call centers to Ireland and India this will give a cost reduction of 40%.
The board of directors has already approved the plans of the senior management team. The union has also been informed, they opposed the plan of moving call centers abroad. The recent compromise the union made on educational and healthcare benefits makes them reluctant to give in more to help Global Communications.
Trough a news message the plan has been made public. Especially the necessary layoffs because of moving the call centers to Ireland and India have received negative publicity.
Stakeholder Perspectives/Ethical Dilemmas
One of the main conflicts exists about moving the call centers to Ireland and India. The union and domestic employees supported by the government and most US costumers believe that the layoffs are not acceptable. These layoffs will not only affect Global Communications but will most probably set an unwanted trend...