Situation Analysis
Issue and Opportunity Identification
Global Communications is experiencing many issues. First is the increase of competition in the telecommunication industry which provides the consumers more choices that result in losing some business. Second, the stock price of Global Communications has decreased by more than half. The falling stock price turned away potential investor’s and lost shareholders. Third, the means of communication within Global Communication is losing integrity. They are experiencing difficulty on how to announce their new strategy to their employees with a positive twist when in fact, there will be some layoffs. The next issue is that the morale of the employees is at an all time low. The union had just agreed to a 20% decrease in their education and health benefits, but now the employees are facing another issue of potentially losing his or her job. Fifth is the vulnerability of losing good employees to their competitor. The timing is best for other companies to take advantage of the current situation and try to pirate outstanding workers from Global Communications. The sixth issue is that current customers potentially defect to competitors because of the change in the quality of customer service operated out of some overseas call centers.
Global Communications is facing a difficult challenge with the economic status of their business weakening. In order to correct the issue, the board accepted the strategy created by management. The company is planning to offer new services to local and long-distance to its small business and consumer customers. Global created an alliance with a satellite provider to offer video services and broadband. The company also partnered with a wireless provider that will allow remote access to the company information hosted in mainframes. Global also plans to open call centers in India and Ireland which will result in cutting down the unit cost for handling calls by approximately...