Mba500-Problemsolution-Globalcommunications
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- Date Submitted: 03/13/2010 05:54 PM
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PROBLEM SOLUTION: GLOBAL COMMUNICATIONS
Problem Solution: Global Communications
Fred Nouri
University of Phoenix
Problem Solution: Global Communications
Global Communications (GC) has seen its market share shrink due to increased competition from carries, such as the cable companies. To address this situation, Global Communication executives have devised a comprehensive cost reduction strategy.
A major component of this strategy is to reduce Global Communication’s union labor cost through outsourcing and reduction in pay. While labor cost reduction is an attractive and viable option for a company, ineffective negotiation with organized labor can prove to be costly.
It is fair to assume that Global Communication has not fully explored all options in their quest to reduce costs. As the paper illustrates, it may benefit the company to engage its workers and union representatives in and to seek solutions from them directly.
In devising their strategy, Global Communication should also consider lessons learned from companies with similar circumstances and the experiences gained from their efforts, especially in global expansion.
Situation Analysis
Issue and Opportunity Identification
Faced with increased competition, Global Communication finds itself in a difficult situation. Cheaper, more desirable products and services form competitors, such as cable companies, resulted in market share losses to the point where Global Communication’s shares have lost over 50% of their value in less than three years (“Scenario: Global Communications”, p. 1). To survive, the company must offer more technologically advance solutions to its customers, at a cheaper rate than the competitor. As part of a comprehensive strategy to regain market share, Global Communication decided to outsource their US based call centers to Ireland and India. Doing so will benefit the company in two ways. First, it will bring in the expertise that is needed to offer...
Problem Solution: Global Communications
Fred Nouri
University of Phoenix
Problem Solution: Global Communications
Global Communications (GC) has seen its market share shrink due to increased competition from carries, such as the cable companies. To address this situation, Global Communication executives have devised a comprehensive cost reduction strategy.
A major component of this strategy is to reduce Global Communication’s union labor cost through outsourcing and reduction in pay. While labor cost reduction is an attractive and viable option for a company, ineffective negotiation with organized labor can prove to be costly.
It is fair to assume that Global Communication has not fully explored all options in their quest to reduce costs. As the paper illustrates, it may benefit the company to engage its workers and union representatives in and to seek solutions from them directly.
In devising their strategy, Global Communication should also consider lessons learned from companies with similar circumstances and the experiences gained from their efforts, especially in global expansion.
Situation Analysis
Issue and Opportunity Identification
Faced with increased competition, Global Communication finds itself in a difficult situation. Cheaper, more desirable products and services form competitors, such as cable companies, resulted in market share losses to the point where Global Communication’s shares have lost over 50% of their value in less than three years (“Scenario: Global Communications”, p. 1). To survive, the company must offer more technologically advance solutions to its customers, at a cheaper rate than the competitor. As part of a comprehensive strategy to regain market share, Global Communication decided to outsource their US based call centers to Ireland and India. Doing so will benefit the company in two ways. First, it will bring in the expertise that is needed to offer...