Global Communications

Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications

Anita B. Class

Problem Solution: Global Communications

Situation Analysis

Issue and Opportunity Identification

The stockholders have major concerns about the poor returns on Global Communications’ stock. Global Communications was under tremendous economic pressure due to diminishing returns. The stock value had dropped more than 50% in the last three years. Global Communications found itself competing for business with local, long distance, and international markets. In an effort to address this issue Global Communications’ senior leadership team plans to introduce new services to small business owners and consumer customers. And partner itself with wireless and satellite providers. Global Communications also proposed marketing itself on the international level by outsourcing jobs overseas and downsizing domestic call centers to cut cost. The board approved the strategy plan sooner than expected. Management would have to devise a plan to communicate this decision while maintaining organizational commitment. According to McShane and Gilnow, (2004), Organizational commitment refers the employee’s emotional attachment to, identification with, and involvement in a particular organization. Some of the management team debated whether or not that the employees

The Union heard about the strategy plan to outsource jobs through the grapevine. The Union Headquarters felt that Global Communications’ strategy plan was unethical and a ploy to manipulate around current contract conditions. The Union recent negotiations had given up 20% of the employees’ education and health benefits convinced that it would help with the company’s long-term growth. The strategy plan outsources jobs to India and Ireland and cut salaries by 10% for employees that moved into Consumer.

Global Communications may not be able to meet growth goals because dissatisfied...