Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS

Problem Solution: Global Communications
Amanda Rodriguez
University of Phoenix

Problem Solution: Global Communications
Global Communications is a telecommunications provider that is facing economical pressure. They are encountering competition with other local, long distance and international markets for the same business. With profitability at a low, Global communications must step it up to increase revenues and profits. Global Communications has prepared a plan to an effort enhance the companies performance, and profit locally and globally. This plan is targeted at an international level with a goal of becoming an accurately global resource for small business and consumer customers. In this paper, a solution will be proposed for Global Communications to expedite the companies plan to improve profitability and continue to treat its employees well, “happy employees make happy costumers” (Kinicki &Kreitner, 2003, p. 125). Global Communications having a strong background of loyal employees will help the company pursue their strategic plan improvements.
Situation Analysis
Issue and Opportunity Identification The telecommunication industry are competing for the same business, there is too much competition with local and international markets. Competitors are offering new features that costumers and consumers want, this makes jobs more proactive and affective. Global communication needs to offer innovative packages to surpass leading competitors. This will allow Global Communications the opportunity to create a sales pitch to bring in new costumers and consumers, as well as to keep its current costumers and small businesses with the up to date technology that will make business work efficiently. Global Communications has a focus to continue treating its employees well, and producing top of the line costumer service.
To provide the sophisticated technical support Global Communication needs, they are looking into outsourcing call centers to India and Ireland, were costumer support is at an expertise level for an economical rate. Delta Airline Inc. is showing interest to open their Call Center in India and Philippines in an effort to save $26 million (Blogger, 2007). Situating new call centers in India and Ireland will reduce unit costs for handling calls by almost 40% for Global communications. Moving the call centers to another country can cause layoffs and current employees being relocated to other call centers around the country or globally.
Global Communication needs to communicate to their employees that there will be various changes to the company, before Global Communications employees hear it from somewhere else. Global communication has an obligation to their employees; Global Communications needs to consider how their employees are going to feel about possible layoff because of the outsourcing of call centers. “Don’t let the grapevine become your source of communication.” To protect morale and retain control over how information is communicated, be candid with your employees (ABA Staffing, 2005 ¶15).
Global Communications also has a commitment to the Technologies Workers Union. Global Communications new strategy of globalization concerns the union. The union has given up 20% of their education and health benefits. Global needs to provide avenues that will encourage the union worker to stay and continue its partnership with Global Communications. According to ABA staffing, suggesting a few alternatives can help employees to stay, one alternative is “Ask your people to take a temporary cut in pay” (ABA staffing, 2005). Although the union will not take the news well, Global Communications should let them know that the strategy will benefit the members with higher salaries and more career opportunities. That will let the union know that there is something in it for them.
Stakeholder Perspectives/Ethical Dilemmas With layoffs as a possibility for Global Communications employees, Global is also at risk for competitors using the opportunity of layoffs to go after Global’s best employees and managers. New features will provide better services to its customers. While Global communications will be downsizing it domestic call centers to increase profitability. Global will market itself globally in an aggressive approach to gain confidence from all around not just in the local market, but in the international market as well. Current employees will be laid off because of the downsizing of Global Communications domestic call centers. Some will be left with out a job and bills to comply to, other will have to take a pay cut in order to keep their jobs. Those that decide to stay will also have to relocate to other area, that’s not to mention their 10% pay cut they will have to worry about. Employees that make the decision to stay in order to avoid searching for a new job, they will also have to face job stability. Global Communications employees will be in fear that there can be another big change that can cause them their jobs in the future. Technologies Workers union is at stake as well. The Union members will also gain, but they will also be in fear of loosing as well. The members will gain higher salaries and career opportunities to make growth. They are at risk to loose benefits as they have done so from prior negotiations that did not go to well.
Problem Statement
Global communication will aspire to enhance the company’s profitability and growth by increasing sophisticated technical support from other countries. Growth will lead to additional jobs in consumers and large businesses. To augment its plan to improve profitability and growth to become a true international company with ground breaking costumer expertise they must provide the appropriate apparatus. Global has developed a strategy; first they will grasp growth by offering its costumers and consumers, primarily small businesses, new features that will provide local and long distance to its market across the nation. Global has teamed with a satellite company to present video services as well as satellite broadband. It’s also partnering up with a wireless provider that will allow the small businesses any time Internet access using wireless telephone or PC cards. It will even host company information mainframes that can be offered remotely. With these inventive new packages will help global realize its goals.
End-State Vision The process of assessing labor supplies and compensation rates for specific skill sets used to be referred to as "manpower planning.” Its projection horizons often extended out to periods of ten and twenty years (Mitchell, 1999). Global Communications will accomplish its goals, Global will find itself as a top notch leader with costumer services. Global will locate more call center all over globally. Profits will go up and costumers will be satisfied. Increasing employee satisfaction and loyalty results in higher costumer preceptions of value, which improves the company profitability (Kinicki &Kreitner, 2003, p. 125). India has the second highest job satisfaction in the world. Based on Ipos-Reid Survey of 9,300 employees in 39 countries in the middle of year 2000 India has a 55% job satisfaction (Kinicki &Kreitner, 2003, p. 125). Global Communication will have increased profits by at least 40%, by the outsourcing of call centers. Turnover rate will decrease, and expertise level will rise, this will enable promotions and more positions opened. With the growth and profits increasing, Global communications will raise salaries to its employees that had pay cuts. Newer consumers will jump on board with Global communications giving additional job opportunities. New costumers and medium to large business owners will have joined Global Communications. There will be costumers all over the world using Global Communications services. Global will be known as a great costumer solution partner with other major companies to provide newer features for large business owners. It will provide data storage facilities, wireless for business globally, WAN services, co-lo’s, low international rates to save companies money. They will have promotions that will give their costumers free services for new accounts that are set up. They will give their costumers discounted offers to features that companies will add to their plans.
Consider the wisdom of legendary football coach Vince Lombardi, who said "Winning isn't everything - but wanting to win is." Vince never managed a call center, but if he did he'd understand the importance of trying your best to win your customers' confidence. Sure, he might have gathered agents into a huddle before they took calls or required them to do calisthenics during lunch breaks. But he wouldn't lose sight of his ultimate goal: complete customer satisfaction (Hollman, 2001, para.1). Costumers will have gained Global Communications trust and confidence for being around for so long and providing excellent expertise level of support and service.
Alternative Solutions Global communications will be relocating to offshore call centers that will influence layoffs and relocations of call center reps.Prepare yourself emotionally: Don't assume personal responsibility for the termination. Remember it is a business decision based on business needs. Acknowledge your anxiety, prepare your approach and talk about your feelings with the human resource and outplacement professionals (HRM Guide, 2007). Global communications will place a career counselor to show their employees that Global communications is concerned about them. With some research, in April 2007, Citigroup announced that it would lay off 17,000 workers – about 8% of their full time employees, as a part of massive restructuring that is expected to save company about $10 billion over next three years (Vijayan, 2007). Company also announced an overhaul of its IT operations, including consolidation of data centers, better use of existing technologies, optimization of voice and data networks, standardization of its application development processes and vendor consolidation. Citigroup also plans to outsource its US operations to India, which will result in loss of additional 10,000 US jobs. As a result of this massive restructuring, company expects savings of about $2.1 billion in 2007, $3.7 billion in 2008, and $4.6 billion in 2009 (Vijayan, 2007). Current slowdown in financial services industry affected Citigroup’s business operations. In order to increase their profit margin, company needed to reduce their expenses. As similar to Global Communication’s Scenario, Citigroup also overhauled its IT operations by outsourcing some of its business functions to India and implementing the workforce reduction. Company’s strategy of reducing their expenses is expected to offset their declining profit margin.
Analysis of Alternative Solutions Global Communications board of directors wants to implement call centers in India and Ireland to reduce cost and to boast profits. Relocating domestic call centers to offshore locations will cut the cost of wages; I rate this solution as a five. This will bring profits higher and improve the service that is expected by consumers and costumers. My second Alternative I rated a one, because employees will not take the news well know that they are going to receive a pay cut on their salary. They will not perform to the level expected, therefore the training will not make a difference. Prepare the materials: Explain the rationale and prepare all severance information in writing (notification letter, salary continuation/severance period; benefits; outplacement, etc.). By producing innovative packages for consumers will make their business needs run smoother, that’s why I rate this solution a five. In order to provide the consumers of small to medium business owner with the proper tools they will be productive with there business needs. Global communications needs to think about costumer satisfaction first. Risk Assessment and Mitigation Techniques
Global Communications my encounter a few risks in their path, and in order to avoid them they must take many measures necessary. During economic slowdown, workforce reduction and employee relations were handled efficiently and company focuses on communicating the deteriorating business situation with its employees. Management can loose great employees to other competing companies. Global Communications needs to focus on making this change as a positive one for its employees let their employees know that there is something in it for them too. Global has a high risk of employees going to other companies for better salaries that can be offered to them.
Consolidating business units and closing or restructuring ineffective ones can reduce costs and save money. When workforce reductions must occur – It’s better to get it done all at once. Some company’s lay off a little here and a little there attempting to lay off as few people as possible instead of adequately defining how many need to go and just doing it.
Focusing on what costumers and consumers want will keep Global communications at workforce and stable. Inventing great deal for their costumers will help them keep its current costumers and bring in new ones. Keeping the costumers satisfied is always a plus because costumers are what makes a business and keeps it going. Placing out surveys for the costumers feedback will help Global communications goal.
Optimal Solution
Global Communications made a choice to do a single time layoff, letting survivors of the layoffs know they are there to make the company work in the new structure and not going anywhere. Ensuring employees understand when changes in benefits occur how this will benefit them in the long run (such as allowing the company to retain more employees leading to fewer layoffs) will get greater buy in to the plan.
Implementation Plan
This plan for Global Communications will be a slow process at first, Global can not let go and layoff any of its employees from one day to the next. "I believe we must transform the way we've done business in the past in order to be more successful in the future," said Jeffrey Kindler, who became Pfizer's chief executive last summer and chairman last month. (Kosmetatos, 2007, p. 1). Global must think of the future, they are looking at a slow progressing outlook, in order for this plan to take complete affect it will take about 3 years to see some progress.
Conclusion
Change can be very difficult for anyone including companies. Change is always done for the better, but in some circumstances it can affect many people in negative ways. Global Communications are under economical pressure; the target of this paper is to provide Global communications with a solution that will increase revenues and profits by deploying call centers over seas. Costumer support in India and Ireland supply sophisticated technical support that will gratify costumers and consumers that will build confidence. New features will supply these costumers and consumers with the appropriate tools to make their business run smoother and more efficiently with quality standards. Global Communications will realize its goals to become known in the global arena that they need to acquire the profits to increase.

References
ABA Search and staffing. (2005). Easing the Pain: How to Handle Layoffs. Retrieved July, 15, 2007, from http://templates.haleymail.com/template.smpl?arg=SRC_article&art=2536&type=SBP&database=company&aid=206
Blogspot. (1999). Call Center In India - Call Center Industry in India. Retrieved July 14, 2007, from http://callcenterinindia.blogspot.com/2003_06_01_archive.html
Mitchell, A. (1999). Labor Market Analysis for Offshoring and Onshoring. Retrieved July 15, 2007, from http://www.crmbuyer.com/story/54224.html
Hollman, L. (2001). Winning Customers' Confidence. Retrieved July 15, 2007, from http://www.work911.com/cgi-bin/links/jump.cgi?ID=1853
Kinicki &Kreitner, (2003). Organizational Behavior (6th ed.). New York: McGraw Hill.
Reporter. (2004). When too much competition can prove unhelpful. Retrieved July 15, 2007,
From, http://www.imperial.ac.uk/P5018.htm
HRM Guide. (2007). Tips for Handling Layoffs. Retrieved July 16, 2007, From http://www.hrmguide.net/usa/layoff_tips.htm Vijayan, J. (April 11, 2007). Citigroup to lay off 17,000, overhaul IT operations. Computerworld. Retrieved May 13, 2007 from http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9016264
Kosmetatos, S. (2007, January 23). Pfizer stuns Michigan with huge job cuts. Retrieved May 10, 2007, from http://www.detnews.com/apps/pbcs.dll

Table 1
Issue and Opportunity Identification
Issue Opportunity Reference to Specific
Course Concept
(Include citation) Concept
Moving call centers to India and Ireland will increase the profits for Global communications. This will cause downsizing domestic call centers and layoffs of current employees. Increase of profits will go up by 40% because labor will be cheaper in the third world countries. This will produce more jobs for consumers and small businesses. According to a recent American Management Association survey, less than half of the companies that laid people off increased their profits after the downsizing (ABA staffing, 2005) Before Taking Action, Validate Assumptions.
Global communications needs to communicate to their employees that there will be some changes to the company before they hear it from somewhere else. They have an obligation to their people. They need to consider how the employees are going to feel about these changes and possible layoffs. Global communications needs to prepare a strategic plan to inform their current employees about changes that will be taking affect in the years to come. They need to market the change as a positive notion. Choosing the appropriate
Media depends on many factors, including the nature of the message, its intended purpose, the type of audience, proximity to the audience, time horizon for disseminating the message, and personal preferences. (Kinicki &Kreitner, 2003, p. 522). Selecting a medium.
To much competition with local and international markets. All markets are competing for the same business. Better features to off in packages are being offered by competitors that make customers go to competitors. Surpass other leading competitors with the offering of better packages for customers and consumers. Packages will include better features. This will be a perfect opportunity to create a great sales pitch and change how the market GC. An international team of researchers is challenging conventional wisdom that the more competitive a market is, the more successful it will be (Reporter, 2004, ¶ 1). Competition leads to success.
Union workers not happy with outsourcing of call centers. Union gave up major benefits; financial problems led to cuts in both education and health benefits. Outsourcing to another country will give small business owners and customers what they are looking for, technical sophistication, India and Ireland can provide that technical support. Growth will lead to more jobs in consumer and large business. Offer temporary pay cut “Don’t let the grapevine become your source of communication.” To protect morale and retain control over how information is communicated, be candid with your employees (ABA Staffing, 2005). Practice open communication.

Table 2

Stakeholder Perspectives
Stakeholder Perspectives

Stakeholder Groups
The Interests, Rights, and
Values of Each Group

Global communications New features to provide better services to its customers. Downsizing cost to improve profitability. Marketing itself globally to boast sales and profits.
Current employees Will be laid off. Relocation for work at other call centers. Pay cuts. Instability of work, not knowing if they will have a job in the future.
Technologies workers union Loss of other benefits and work. Pay cuts and layoffs. Search for other companies with better salaries and benefits.

Table 3

Analysis of Alternative Solutions

Table 4
Risk Assessment and Mitigation Techniques
Risk Assessment and Mitigation Techniques
Alternative Solution Risks and Probability Consequence and Severity Mitigation Techniques
Relocate domestic call center reps and take a 10% pay cut. • Meduim
• Will go to a leading competitor and work for better salary.
• Will not perform to the level that is expected. Costumers will not be provided with the expertise that is anticipated. • High
• Leading competitors will have Globals best employees.
• Costumers will turn to another company that will provide exceptional technical support.

• Make the layoffs sound like a great investment for them in the future.
• Promise promotions and show the employees that they can confide on Global Communications.

Train Current call centers reps to provide excellent costumer support. Let go those that do not meet standards. • High
• Not too many reps are going to like the pay cut and will not put any effort into working.
• Current employees will quit. • High
• Will tell other people out there that Global Communication gets rid of their employees
• People will not want to apply at Global Communications in the future. • Train the employees and let them know that they are doing well at what they do.
• Let them know that there will be jobs available in the long run.

Produce better efficient packages for current and new costumers. • Low
• Will believe that Global communications is not credible with costumers.
• Packages will not meet costumer standards. • Low
• Will turn to another company.
• Will go to another company that will meet their standards.

• Look at what interests the current consumers now to provide them with packages that fit their needs.
• Confidence will create a bond, that will lead to new costumer and credibility.

Table 5
Optimal Solution Implementation Plan
Deliverable Timeline Who is Responsible
Increase revenue and profits 3 Years Katrina Heinz: Global Communications Chief Executive Officer.
Help establish relationships with key stakeholders. Present – 2007 Sy Rodriguez: Executive Vice President of Consumer Marketing and sales.
Create innovative packages of valuable Solutions for the small to medium businesses. Present- ongoing Nancy Everhardt: Executive Vice president of Small Business and Marketing Sales.
Work with the union and build trust with them. Present- ongoing Joel Thompson: Executive Vice President of Human Resources.
Support and make the union workers that the plan will work. Present- End of 2004 Maria Antez: Vice President in the technologies Workers Union.

Table 6
Evaluation of Results
End-State Goals Metrics Target
Global Communications will take customer service to the next level by providing excellent support to its customers. Costumers and consumers will provide feedback and surveys with positives. A dozen surveys per day, starting May 2004.
Global Communications will offer great new services such as: satellite TV and broadband to their customers. Wireless communication to small businesses to allow internet access using wireless phones or PC cards. New costumers joining Global communications, and current costumers and consumer adding new features or purchasing packages. Profits will go up and consumers and costumers will spread the word that Global Communications is a reliable and affordable company.
Communications will be provided. Services will be offered in an international intensity. With call centers in Ireland and India, this will be to further the services globally. Call centers will be placed in India and Ireland. Domestic call centers will slowly be eliminated. Profit will increase by 40% in the first 3 years or implementation.