Problem Solution: Global Communications

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Date Submitted: 04/04/2009 11:12 AM

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Problem Solution: Global Communications

Joe Rix

University of Phoenix

Problem Solution: Global Communications

Global Communications faces financial limitations as well as fierce competition in its industry. The Leadership team has to make decisions and layoffs are imminent. The Union representing the workforce will not sit back and watch either.

Situation Analysis

Issue and Opportunity Identification

Global Communications is an industry leader in telecommunications. Competition in this market is fears and has increase with cable companies pushing into the market. GC is planning to grow by introducing new calling features and growth in its small business and consumer sector. Global Communications is planning to provide video as well as broadband via satellite that allows access anywhere.

Global Communications is planning to globalize its operation. Besides competing in local markets, the company will outsource its technical call centers to Ireland and India within 3 years. This would yield a 40% reduction in unit costs and increase the organizations bottom line. Some of the current call center agents will be relocated to other non-technical call centers within the US; however, a majority of workers may lose their job or face pay cuts.

Global Communications should be able to realize value in call center real estate. This may be a long-term undertaking depending on the local real estate market as well as the demand on turnkey call centers. Depending on the loan to value situation, this may be a relief for Global or become another burden by owning unused properties requiring maintenance and loan payments. Generally, real estate is considered an asset on the books and may be helpful in long-term financial planning. The leadership team has not looked into consolidating some of the centers.

Some of GC’s biggest challenges will be with the union that represents the...