Problem Solution: Global Communications
In today’ business world companies are feeling the pressure from competitors and one of the greatest challenges in being a successful business by staying a step ahead the competition. Not only are there competitors in the same industry but they are all competing for the same customers. There also seems to be more of a decline in the concern for the interest of the employees. With large companies facing the threat of closing the doors, it seems as though the first thought is to see where corners can be cut. One way companies have cut costs is by outsourcing products to foreign countries and Global Communications is one of those companies. When companies outsource, employees are the ones that are feeling the effect because their jobs are being cut. In the following it will be discussed how Global Communications will attempt to increase profit while at attempting to work side by side with the union in order to avoid the option of outsourcing.
Due to the lack of new business, Global Communication is suffering financially and needs to find a way to cut expenses. In the past year stockholders shares have decreased over 50% which is a significant loss. One resolution is Global Communications can cut costs by outsourcing their business to Ireland and India. If the company does outsource to foreign countries then there will be a number of domestic employees who could be laid off. Global Communications has not met an agreement with the Union and without an agreement the company will be at risk for an even greater financial loss and thousands of extremely unhappy people.
Global Communications has considered expanding local and long distance services by focusing on new growth with small business and consumer markets. The company also wants to partner with satellite and wireless companies which will allow Global to compete for a top spot in the highly competitive industry. Rather than relocating jobs to...