Global Communications Case Study

Global Communications (GC) is facing many issues. Restructuring of the organization is required to offer services and cut costs. Global Communications can better compete locally and globally to increase revenue and profits.

One issue that Global Communications is facing is the depreciation of stock by more than 50 %. Stockholders do not have confidence in the success of the company. Global Communications is also facing a competitive marketplace where everyone in the industry is competing for the same business. Recent offerings of bundled package solutions by cable companies that included computers, television and telephone service have also impacted the company. Management has identified dug in deep and attempted to diagnose the true cause of the problem (Bateman and Snell, 2005, chapter 3). A recent decision by the management team to cut costs by significant lay offs of employees and decreasing the salaries of those that relocate by 10%. This decision has angered the Union who recently took a cut in health and education benefits. The Union understood that these costs would support the company's long term growth. They now feel that they have been treated unethically and plan to take action against Global Communications. The Union is no longer willing to negotiate based on the new strategic plan.

Global Communications faces many issues and have many opportunities that will help to turn the company around. The senior team has put together a strategic plan that if effective, will transform the company into a global corporation within the next three years. The Global Communications Chief Executive Officer, Katrina Heinz has past experience in working for a global long distance provider and is focused on increasing both revenue and profits through more aggressive globalization. Entering and competing in local and global markets will help make the company more completive and increase the value of the stock. The Executive Vice President of Small Business and Marketing Sales, Nancy Everhardt will concentrate on growing the small business market by creating innovative packages of valuable solutions like video services and a satellite version of broadband and creating a partnership with a wireless provider for anytime internet service.

There is also the opportunity to increase sales by marketing new products and services both locally and globally which is the focus of Sy Rodriguez, Executive Vice President of Consumer Marketing and sales.

Due to the decision to outsource some of the call centers to India and Ireland reducing unit costs by nearly 40%, Joel Thompson, Executive Vice President of Human Resources and Public Relations will focus on creating severance packages and contracting with consultants at outplacement companies to assist those impacted by this decision. Communications will also need to be created for both those internal and external to the organization.

In addition to the impact on the employees, the Union is angry that they have agreed to the decision to cut both education and health benefits to assist the company with savings. Maria Antez, current Vice President in the Technologies Workers Union, serves as the liaison between Global Communications and the Union and will need to focus on reopening negotiations