Global Communications Company

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Global Communications


In this paper, I have mainly focused on the problems, which are faced by the Global Communications before and after the implementation of a new plan, which aims at making Global Communications a truly global organization. In the telecommunication industry, Global Communications is also facing some financial crisis and economic pressure like other companies. Earlier, the company's stock traded at $28 per share, but now, it is valued at $11 per share, nearly about a 50% decrease. Due to the increases in the competition in the local, regional and international market, the main problem in front of the company is to grow in the global world (Treasury and Risk Management, 2005).

Problem Statement of Global Communications

Global Communication is considered to be as one of the leading companies in the telecommunications industry. The company is loosing the confidence of its investors and stockholders and this is the main and foremost problem in front of it. There has been a constant decrease in the market value of the shares of Global communications from 28$ per share to 11$ per share. There is an intense competition within the industry. Therefore, Global Communications wants to increase the value of the shares of the company in the market. Due to this reason, a two-sided plan was developed by the senior leadership team of the company (Global Communications, 2008). There are two aspects of this plan- the first one is related to the introduction of new services all over the country primarily for the small business and customers in local as well as long - distance markets. This would help the company in achieving its growth targets. In order to give video services together with a satellite version of broadband to the customers, the company has formed associations with a satellite provider, so as fight in the local competition market. Collaborations with a wireless provider would assure an access to Internet at any point of time to a small business owner with the help of a wireless telephone and PC cards and also the company's information that is highly secured in the mainframes could be accessed easily (McPhail, 2006).

The second aspect is related to the cost cutting, so as increasing the profits. With the help of outsourcing, the two approaches are becoming international and also require globalization. The company uses generic benchmarking approach for the above purpose.

According to the circumstances of the company, it is facing several issues also. The first issue of the company is related to the fall in the stock price due to increases in the competition. This is really tough to handle and is the main reason for decline in the market value of Global. The main issue of the company is that, it wants to become a global leading company through outsourcing. The company should introduce new products and services in the market, which are based on the latest and innovative technologies so that it can achieve the global position for the company. With the help of a new and innovative product, a company could maintain a differentiation with the competitors.

The third issue faced by Global is the consequence from the layoffs that it has planned. By moving some of their call centers to India and Ireland, it could cut the costs and become more competitive. The company may save the cost of the company by way of fewer employees and less salaries, but it also has to deal with the employee satisfaction and motivation. Another issue is the internal communications in the company. Profit level and growth of the company are other issues. The management team of the company is identifying the various cost-cutting methods, so that it would be able to increases the profits of the company.

These issues create barriers in the success of the company, so it is essential for the management team of the company to resolve theses issues. By resolving these issues, the company could enjoy an uninterrupted growth in the global market and utilize the various opportunities. By implementing new strategies for the effective development of the new products and cutting the costs of the expenses, the company could accomplish its targets and goals. The other issue of the company is associated with the union of the employees (Roberts, Kossek, & Ozeki, 1998). Every employee has a different personality; nature, perception and different view towards the problems, so it is a very difficult task for the company to manage the union in an effective way and also to satisfy each employee by resolving the conflicts among the union (Tackling Low Employee Morale, 2008). The other issue of the company is linked with the commitments of the company with the employees, higher authorities, society, consumers and nation. These responsibilities and commitments develop complications and stress among the employees and they are not able to give their best performance.

End-State Goals

The end state vision of the company is to maintain its position in the global market and boost and augment the goodwill and market value of the company by offering the products and services based on the innovative technologies than their competitors and cutting down the cost of expenses.

Just like all other companies in the industry, Global Communications is facing economic issue and not able to combat the competition due to the highly changing and technological environment. By offering better services to their small business and consumer customers, Global has plans to grow in the global market. In a simple manner, we could describe that its end state vision is to outsource its services and become a truly global company. Global communications manufactures products for the satellite and TV market.

After completing the market research in the various countries, the management team of the company has realized that in the countries like India, Ireland and the small business owners have a great potential. So, the company has decided to enhance the technological precuts in these countries and doing business with the small business owners. Company is also planning to expand its call centers in these countries to utilize the opportunity to decrease per unit costs of handling calls by 40 %, because labor is relatively cheaper in India and also a lot of people seek employment, since there is poverty and unemployment. The company is also making a plan to rationalize its domestic call centers.


Global Communications (2008). Retrieved March 31, 2008, from

McPhail, T.L. (2006). Global Communication: Theories, Stakeholders, and Trends, Blackwell Publishing House.

Roberts, K., Kossek, E. & Ozeki, C. (1998). Managing the global workforce: challenges and strategies. The Academy of Management Executive, 12(4), 93-110.

Tackling Low Employee Morale (2008). Retrieved March 31, 2008, from

Treasury and Risk Management (2005). Health Costs Slow Profits, 15(7), p11. Retrieved March 31, 2008, from EBSCOhost database.