Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS
Problem Solution: Global Communications
University of Phoenix
Problem Solution: Global Communications
This scenario was an excellent example and one that transpires in most companies—large or small. It is a classic case of the urge to grow financially, in both increasing profits and reducing unnecessary costs. It involves pressure from senior officials and shareholders, who are consumed with the bottom line, as well as stakeholders who find themselves with a different set of values within the company. In any event, it is a situation of right versus right, where you are desperate to turn your company around but are in a dilemma to find a way to please all sides in the process.
Situation Analysis
This scenario involves Global Communications (GC), who was a leader in their industry and due to increasing competition is finding they are steadily losing profits and market share. Consequently they have incurred more than 50% depreciation in their stock to $11, from $28 three years ago. Now the company is receiving criticism from its shareholders and board of directors to turn this trend around.
Katrina Heinz, the Chief Executive Officer (CEO), has been tasked with putting together a team of senior leaders to attack this issue and come up with possible solutions. Katrina and her team, comprised of all Executive Vice Presidents of various divisions within GC, have suggested a two-pronged approach to turning around profits. First, the team has decided to expand its services it offers to small business and consumer customers. In addition, GC has created alliances with a satellite provider to offer high-end wireless services to its small business clientele. The second approach is one in which the senior team has identified some cost cutting measures. This plan proposes marketing itself more aggressively on a global level by downsizing their current domestic call centers and...