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Mba 500/Uop - Global Communications

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Problem Solution: Global Communications
The first section of the problem solution focuses on the most important past events that led to the issues and opportunities listen in Table 1. This is an analysis of the situation Global Communications finds itself in. These events are not the problem of the case but are what started the problem. In the stakeholder perspectives and ethical dilemmas section you will find various stakeholders identified, their interests, rights and values. The conflicting interests, conflicting rights, and ethical dilemmas are discussed here using the information in Table 2. The problem statement section includes what Global Communication aspires to be and the range of opportunities it must seize to achieve that vision. The end-state vision section focuses on where the company would want to me in the next few years. If all the challenges overcome, all the problems were solved and all the opportunities are realized then where would Global Communications stand. The statement directly reflects the desired end state Global Communications targets. The visions statement helped formulate the end-state goals listed in Table 3. The alternative solutions section you’ll find solutions that support my problem statement. These solutions summarize the benchmarking findings related to the problem statement, the relevance of benchmarking to Global Communications and specific solutions that give us details for Global Communications findings. Analysis of alternative solutions section explains why I assigned the relative importance to the goals as I did in Table 3. It also explains the rating I gave to the best alternative with respect to each goal. Risk assessment and mitigation techniques section was done by completing table 4 initially. In this section I examined the probabilities and consequences of negative outcomes or risks associated with the remaining alternative solutions. I also assessed the general probability and severity of the risks materializing, as well as mitigation techniques that can be used. The optimal solution section explains what the solution looks like and describes how it will help Global Communications achieve its vision. It also justifies the key findings that led to my optimal solution. Next section in my report is the implementation plan where I show the value of a successful execution. I completed table 5 to provide myself with a road map for the implementation of my solution. This section also summarizes how long it will take to implement the plan, the resources that need to be committed and major functions of the organization that will take on key responsibilities. Evaluation of results section details the reader how I measured my proposal’s success against the end-state goals. This was initiated by completing table 6. This section also discusses the reliability and validity of my measurements. Conclusion of my analysis is the next section in my paper which summarizes the knowledge I have gained while developing the problem solution for Global Communications. It includes the ideas that are discussed through out the analysis. Table 1 consists of issues and corresponding opportunities in columns 1 and 2. In column 3, the underlying issue is identified and in column 4 a specific reference of the concept is provided. Table 2 is next in order which identifies the key stakeholders in this analysis. Column1 lists the stakeholders in the Global Communications scenario and column 2 lists each group’s interests, rights and values. Table 3 summarizes my alternative solutions and relates the solutions to my end-state goals where I performed a weighted analysis for each alternative solution. Table 4 the two remaining alternatives are listed which weighed the highest. Column 2 lists the potential risks of each alternative and column 3 evaluates each alternative for the consequences if the risk occurs. Column 4 is an identification of mitigation techniques that can be used to alleviate or neutralize the possible consequences. Table 5 is an implementation plan where major deliverables are stated, timelines are stated and the responsibility of the deliverables is assigned. Table 6 consists of end-state goals which will let you know that the end-state vision is achieved.

Situation Analysis
Issue and Opportunity Identification
Telecommunications industry is rapidly declining on Wall Street. Due to the decline of the telecommunications industry and stockholders sufferance of diminishing returns Global Communications is under extreme economic pressure. The sufferance of stockholders diminishing returns has caused Global Communications stock which traded at $28/share to depreciate to $11/share in 3 years time. The cable companies who stepped in the market to provide complete solutions to customers caused the telecommunications industry to take a huge blow. Entry of local companies competing for the same market has led to decline in sales and profit for Global Communications. Local, long-distance and international market competition has caused worries for Global Communications.
Stakeholder Perspectives/Ethical Dilemmas
Global Communications Chief Executive Officer Katrina Heinz values accountability the most. Katrina’s goal is to increase both revenue and profits through aggressive globalization. Katrina is excited about the new plan for entering and competing in local markets and step up globalization for Global Communications. Nancy Everhardt, Executive Vice President of Small Business and Marketing Sales values accountability and profitability for the company. Katrina and Nancy both seem to be on the same page for the implementation of the new strategy. Sy Rodriguez, Executive Vice President of Small Business and Marketing. Sy has been with Global Communications for over 20 years, he’s focused and driven, he gets results. Sy feels that the layoffs will cause major morale issues and impact productivity. He feels it will be tough for Global Communications to retain people. He values fairness, honesty and social responsibility. Joel Thompson, Executive Vice President of Human Resources and Public Relations, values honesty, integrity and accountability. Joel has effective relationships with major key stakeholders, including the Union. He agrees with the new strategy. The latest negotiations with the Union did not turn out that good because financial problems led to cuts in both education and health benefits, but he believes it is important to understand that the company needs to grow and improve profitability. Maria Antez, Vice President Technologies Workers Union has been the middleman between Global Communications and the Union for the past decade. She has established strong relationship with majority of the Global Communications executives but the Union president is dissatisfied with her recent negotiations over health and educational benefits. She values social responsibility, integrity and honesty. Andre Mustov, President Technologies Workers Union strongly values fairness and equality. States that Global Communications outsourcing strategy will set a precedent for the whole industry. Says he will take action both through the government and all other available resources. Stockholders want good profitable returns on their investments in Global Communication there concerned about their benefit primarily. Suppliers want Global Communications to be stationed locally rather than abroad so they can still supply necessary supplies and equipment. They’ll have to ship internationally if Global Communication out sources they see a loss if Global Communication out sources. Local community people will lose their jobs and a lot of jobs will be outsourced abroad. Many employees will be unemployed if Global Communication executes the plan. They have commitment to other people that they fulfill through Global Communications paycheck they receive.

Problem Statement
Global Communications will penetrate internationally by partnering with T-Mobile, Comcast and Vodafone. Global Communication will increase its market share by successfully earning profits and revenues that will eventually increase its share to $28/share. Global Communication will reduce labor costs and operating costs to generate better profits and revenues by setting international call centers and reducing work force locally.
End-State Vision Global Communications plans to realize growth through the introduction of new services, primarily to its small business and consumer customers, who will now be served in both local and long-distance markets across the country and will market itself more aggressively on an international level with the goal of becoming a truly global resource.
Alternative Solutions
This is basically what the problem statement consists of. Global Communication will out source its call center abroad where cheaper labor is available. Partner with local cable and phone service providers to target a bigger market so it can bring its market share back up. Form alliances so it can advertise internationally and market globally as well. Out source the corporate headquarter to a Central American country to cut down operating costs of the company. Global Communications will penetrate internationally by partnering with T-Mobile, Comcast and Vodafone. Global Communication will increase its market share by successfully earning profits and revenues that will eventually increase its share to $28/share. Global Communication will reduce labor costs and operating costs to generate better profits and revenues by setting international call centers and reducing work force locally.

Analysis of Alternative Solutions All the goals are weighed equally in table 3. Every single goal is important in this situation. There are more then 20 goals that need to be satisfied by Global Communications to stay in business and table 3 has the 4 most important ones. All 4 of the goals discusses in table 3 are weighed at 5 or high there each equally important. In table 3, alternative A, B, D and E have a final rating of 4.25. These four alternatives directly affect the company’s revenue and profits and also the company going global. In order for Global Communication to succeed and be where it wants to be all these 4 alternatives need to be completed to be able to satisfy the end-state goals. Outsourcing the call center for cheaper will grow business and will increase profitability. Partnering with local telephone and cable will help Global Communications compete locally increasing profits and revenues. Partnering with international firms, international marketing and advertising will help Global Communications to rebound as an industry and raise the value of its stock to a respectable price. Setting up the corporate headquarters in Mexico or another Central American country will not only reduce operating costs but help the company market and sell products and services globally. The reason why alternative C had a final rating of 4.0 was because this goal will help the company increase local sales with its existing customers which will not result in great profits. The profit and revenue is generated with new accounts rather than local upgrades.
Risk Assessment and Mitigation Techniques
In table 4, I was left with two alternative solutions. Partnering with local cable and telephone companies being one and the other was to partner with international firms, marketing and advertising internationally.
The risk associated with partnering with local cable and telephone companies is that it can result in failure. If the local companies that Global Communications partners with fail to yield favorable results not only the local company suffers but Global Communications suffers as well. That is a high risk. Another risk associated with this alternative solution is that after partnering with local companies you share your technology and strategies with them. That endangers the company’s biggest asset, unless they sign a contract that protects Global Communications technology and strategies to conduct business, another high risk. If proper measures are not taken; Global Communication can struggle to compete in the local market again eventually leading to the company’s bankruptcy, high severity. To be on the safe side the mitigation technique Global Communication can utilize is creating partnership contracts to where both company’s strategies/techniques are secured by copyrights or patents. Another technique that can be utilized is partnering with companies that are secured and well established in the market.
The risk associated with partnering with international firms and investing money into international marketing and advertising is if its results in no market gain internationally. The company will than be bound to suffer from major losses leading again to bankruptcy. Another risk is trusting people abroad to handle company functions and operate it else where, both high risk. The company can suffer from its technologies/strategies being duplicated or stolen, high severity. To be on the safe side, Global Communications should only partner with those firms that guarantee global business to them. Another way they can lessen the risk is to station only call centers abroad and keep the headquarters in the United States.

Optimal Solution
Global Communications will penetrate internationally by partnering with T-Mobile, Comcast and Vodafone. Global Communication will increase its market share by successfully earning profits and revenues that will eventually increase its share to $28/share. Global Communication will reduce labor costs and operating costs to generate better profits and revenues by setting international call centers and reducing work force locally. Global Communications plans to realize growth through the introduction of new services, primarily to its small business and consumer customers, who will now be served in both local and long-distance markets across the country and will market itself more aggressively on an international level with the goal of becoming a truly global resource. Every single goal is important in this situation. There are more then 20 goals that need to be satisfied by Global Communications to stay in business and table 3 has the 4 most important ones. All 4 of the goals discusses in table 3 are weighed at 5 or high there each equally important. In table 3, alternative A, B, D and E have a final rating of 4.25. These four alternatives directly affect the company’s revenue and profits and also the company going global. In order for Global Communication to succeed and be where it wants to be all these 4 alternatives need to be completed to be able to satisfy the end-state goals. Outsourcing the call center for cheaper will grow business and will increase profitability. Partnering with local telephone and cable will help Global Communications compete locally increasing profits and revenues. Partnering with international firms, international marketing and advertising will help Global Communications to rebound as an industry and raise the value of its stock to a respectable price. Setting up the corporate headquarters in Mexico or another Central American country will not only reduce operating costs but help the company market and sell products and services globally. The reason why alternative C had a final rating of 4.0 was because this goal will help the company increase local sales with its existing customers which will not result in great profits. The profit and revenue is generated with new accounts rather than local upgrades. Partnering with local cable and telephone companies being one and the other was to partner with international firms, marketing and advertising internationally.
The risk associated with partnering with local cable and telephone companies is that it can result in failure. If the local companies that Global Communications partners with fail to yield favorable results not only the local company suffers but Global Communications suffers as well. That is a high risk. Another risk associated with this alternative solution is that after partnering with local companies you share your technology and strategies with them. That endangers the company’s biggest asset, unless they sign a contract that protects Global Communications technology and strategies to conduct business, another high risk. If proper measures are not taken; Global Communication can struggle to compete in the local market again eventually leading to the company’s bankruptcy, high severity. To be on the safe side the mitigation technique Global Communication can utilize is creating partnership contracts to where both company’s strategies/techniques are secured by copyrights or patents. Another technique that can be utilized is partnering with companies that are secured and well established in the market.
The risk associated with partnering with international firms and investing money into international marketing and advertising is if its results in no market gain internationally. The company will than be bound to suffer from major losses leading again to bankruptcy. Another risk is trusting people abroad to handle company functions and operate it else where, both high risk. The company can suffer from its technologies/strategies being duplicated or stolen, high severity. To be on the safe side, Global Communications should only partner with those firms that guarantee global business to them. Another way they can lessen the risk is to station only call centers abroad and keep the headquarters in the United States.
Implementation Plan
Partnering with T-Mobile within 6 months will allow Global Communications to implement their solution which will complete their goal of competing with local phone companies. T-Mobile is one of the largest phone service provide in the nation. T-Mobile also has international marketing and advertising campaigns that Global Communications can become a part of and therefore satisfy another goal which is to be a global firm. Comcast just recently bought Time Warner Cable service. Comcast now sells a triple plan which includes cable TV, home phone service, and cable internet for $99.99. Partnering with Comcast will surely give Global Communication a competitive edge over other local phone and cable companies. This will allow them to reduce advertising and marketing costs for the new triple plan because it’s already been introduced in the market by Comcast. Vodafone is one of the largest phone service firms in Europe. Partnering with Vodafone will open international channels for Global Communications and through Vodafone it can have a big impact on the European telecommunication market satisfying Global Communication’s goal of being global and from there on Global Communication can advance further into different regions of the world.

Evaluation of Results
Global Communications can reduce unit costs of call handling by simply partnering with T-Mobile or even Comcast. My end-state goal here is to Grow in business and increase in profitability through reducing unit costs for handling calls by nearly 40% by 2011. The only difficulty in the measure here is that Global Communication might not be able to reduce costs by 40% as soon as they merge, so therefore by 2011 this obstacle should also be over come. Another goal that can be achieved through partnering with local telephone and cable companies is both revenue and profits will increase by 50% within a year. T-Mobile and Comcast are already well established and making huge profits. Forming a strategic alliance with them will open many doors for Global Communications to market their product/service to existing T-Mobile and Comcast customers or just simply upgrading them. Adding on Global Communication’s products and services to T-Mobile and Comcast customers is another advantage Global Communication can take benefit from. Alliances with the two companies will help Global Communications rebound in the industry and raise back its stock price to where it was in the beginning $28/share. Lastly, partnering with Vodafone takes Global Communications to the European market and other regions in the world. This alliance can be done by 2011 when Global Communication establishes itself in the United States firmly.

Conclusion
While developing my problem solution I have learned to compare Global Communications actual performance to its potential performance. After benchmarking, it is very clear where Global Communications should invest its time, money and human resources. The benchmarking and problem solution analysis helps spot areas where Global Communications have room for improvement. At this point, I have stated the key issues and opportunities that Global Communications is facing. Telecommunications industry is rapidly declining on Wall Street. The company is in extreme economic pressure. Lack of local and international market led to decline in sales and profit. Global Communications senior staff team proposed a plan to enter and compete in local markets and step up the company’s globalization which was approved by the Board. The new plan cuts educational and health benefits by 20% and kills a lot of jobs because of outsourcing the new call center to India and Ireland. Global Communications has a history of treating employees well; as in case of Sy Rodriguez who even has been quoted several times that Global Communications competitive advantage comes from its loyal employees. The company faces serious challenges and to over the challenges Global Communications will be forced to execute the new plan despite of complications and disagreements with the Union. After implementation of the new plan the company expects a growth in business and increase in profitability through reducing unit costs of call handling. Global Communications also visions to compete with local telephone and cable companies increasing both revenue and profit by half. The plan also targets to rebound as a company and raise the value of its stock to where it was before the three year depreciation. Global Communications aims to be a true stable global corporation within the next three years.…...

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...Walmart: Global Communications Benchmarking In today’s economy many company executives are often faced with making decisions like having to cut-costs to remain profitable and a key player in today’s market. Global Communications is faced with making decisions on some cost-cutting strategies that will assist them in increasing their profits. Walmart is an example of a company who uses good decision making to introduce cost-cutting measures to remain profitable in today’s market. Walmart is a low cost discount retailer that offers its customers a broad range of products and services. Walmart’s goal is to save people money so that they can live better (Walmart, 2001). In order to remain viable in today’s economy Walmart announced that it would be introducing some cost cutting measures that would help them to remain profitable in today’s marketplace (bnet,2010). Walmart has decided to cut thousands of prices on products, revamp its benefit plan, and eliminate benefits such as its company profit-sharing payouts to its employees in order to cut-costs (D’Innocenzio, 2010) . Global Communications can benefit by reviewing and implementing some of Walmart’s cost-cutting techniques to help them increase profits. Global Communication can also benefit from Walmart’s techniques by reviewing the companies benefit plan to see where there may be room for cuts. The company can look at some of their competition to see where there may be room to slash some of their prices in order to gain......

Words: 445 - Pages: 2