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 ...view middle of the document...
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 to create a Win-Win approach to better results for both parties. (Kreitner and Kinicki , 2004, chapter 14).
Key stakeholders at Global communications are shareholders, customers, management team, employees, and the union. All have an invested interest in the current situation and will be impacted by the decisions. Shareholders want to see a return on their investment, not a further drop in stock value. The customers want a selection of products for one stop shopping and good service at reasonable prices. Senior management is interested in creating a plan that will make the company successful in the next few years as well as being open, honest and sharing the strategy with the employees so that they will understand why the decisions are being made and that those that remain with the company will become strategic partners. If they do not, there will be morale issues and a drop in current productivity resulting in potential conflict for the company. “Certain situations produce more conflict than others. By...