Problem Solution: Global Communications
Operating within the telecommunications industry, Global Communications has recently experienced the declining value of their stock price and increased competition. The executive management team has developed a strategic plan to cut costs and expand services to re-stabilize and make a name for itself in the industry. This change does not come without objections by employees and union representatives.
The company’s plans are to outsourcing labor costs and cut salaries to assist with Global Communications reaching its post strategy goals. The union and employees are objecting greatly to management’s decision to keep plans from them and reduce pay, post renegotiation that cut employee’s pay and benefits. The media has taken the wheel and exposed Global Communications relating only the union’s perspectives. Now, Global Communications must consider changing its decision making process and communication methods to realize the potential successes to come.
Issue and Opportunity Identification
Global Communication has experienced an increased drop in stock prices due to elevated competition which has affected the entire telecommunications community. In the past three years, Global Communications’ stock has declined from $28 per share to $11, at 50 % depreciation. The increased competition for the local, long-distance and international markets for small businesses has been influenced by the aggressive approach of multiple service options by cable companies.
Global Communications senior leadership team has experienced several factors that have influenced their current decisions. Management has realized that a maximizing decision must be made. “Once you have considered the possible consequences of your options, it is time to make your decision. The Maximizing decision realizes the greatest benefit at the lowest cost, with the largest expected total return” (Bateman & Snell, 2004, p.36). By focusing on...