Problem Solution: Global Communications Essay Example

richness with the workers union and employees.

Despite the expectation that GC would prevent grapevine communication, research shows that "75 percent of employees typically receive news from the grapevine before they hear about it through formal channels" (McShane, Von Glinow, 2005 p. 30). Due to the lack of communication regarding future arrangements, there was no clear explanation of what would happen to employees. Consequently, the union and employees had no choice but to rely on grapevine communication. The management of GC believed that they had effectively communicated their ideas to the union.

The stumbling block in GC's communication with the union led to a problem. As stated in the quote "The illusion that communication has been accomplished is the greatest problem." (McShane, Von Glinow, 2005, P16), GC failed to acknowledge how the union would respond to their global expansion strategy, which resulted in job losses for many workers. In addition to their failure to anticipate the union's actions, they also neglected to actively listen and understand each other's objectives. GC's inability to effectively communicate was a result of their failure to listen to the union.

According to Steve L. McShane and Mary Ann Von Glinow (2005, P25), "Nature gave people two ears but only one tongue, which is a gentle hint that they should listen more than they talk." Effective communication requires listening to the opposing party and attempting compromise while considering their interests. Conflict arises from a failure to listen and when different perspectives and goals clash in seeking a common point or solution. The integration of diverse viewpoints leads to sound judgment.

Everyone involved in the situation is a stakeholder as they are all impacted by the

new policy. GC is facing competition in their industry and is at risk of not surviving if they do not take action promptly. The proposal suggests that numerous workers at GC will lose their current jobs. However, the workers' union strives to ensure their employees have suitable working conditions regardless of the circumstances and being laid off is not part of their agenda. To protect the company's confidentiality, GC has chosen not to disclose their forthcoming strategies as the information is deemed confidential.

At this stage, the management of GC confronted an ethical dilemma: should they disclose confidential company information and involve the union in decision-making? The union's goal is to ensure fair treatment of workers, while GC must prioritize company privacy. These objectives clash when they intersect. Although Global Communications' decision to enter the global market, pursue profit growth, and reduce expenses to stay competitive is justifiable, they failed to effectively communicate this intention.

The inputs from the technology workers union will assist GC in making an informed decision by gaining a better understanding of the outcome of their strategy. In order to make efficient decisions within an organization, it is important to consider everyone's perspective simultaneously, including your own. By forming an alliance with the unions in the decision-making process, a better solution can be achieved, eliminating anxieties related to potential lawsuits or damage to one's reputation. The use of more persuasive communication channels could have prevented barriers in communication.

To avoid rumors about the company and its employees, it would have been beneficial for GC to engage in communication with the workers union from the beginning. This would have allowed GC to anticipate

and address any potential issues, including the union's reaction. GC should have also contemplated the potential cost of the union's response and determined whether any legal action would outweigh the benefits of laying off workers. By achieving its ultimate goals, Global Communication can successfully enter the global market.

The initial step to take after moving to Ireland and India is to increase profits and reduce costs. To achieve this, it is necessary to regularly prepare and monitor costs. Another important objective is to restore their reputation as it is a valuable asset. By rebuilding their reputation, they can enhance their stock value and win back employee loyalty. GC should strive to regain public trust in order to attract more investments and become a prominent player in the telecommunication industry.

Moreover, the company's employees are experiencing considerable job cuts. This circumstance has generated a feeling of uncertainty among those who still have jobs, as they wonder about their worth to the company and if their positions are safe. It is essential for Ford Motors, similar to Global Communications, to restore their reputation and guarantee that they retain their best employees instead of losing them to rivals. Both companies must investigate new sources of revenue by expanding internationally and adopting cost-saving measures in order to stay competitive in today's market. Despite operating in different sectors, both companies have a comparable relationship with labor unions.

For Ford Motor's corporation to stay competitive in the automobile industry, it needs to boost profits, requiring cost-cutting measures. One way Ford achieved this was by laying off workers in the US and outsourcing some parts fabrication to Magna International in Europe. These actions strained relations

with the United Autos Union, but now maintaining communication with the unions is a priority for Ford. "Considering the state of the auto industry, I'm impressed that our national bargaining committee negotiated a favorable contract" (Mills, 2007).

Global Communications and Ford both failed to recognize the importance of informing the telecommunication union about their intention to lay off workers, which could have prevented a potential lawsuit. Similar to GC, Ford should maintain a strong partnership with labor unions, particularly in situations where employees have a significant stake. Establishing an alliance with the union is the initial stage in enhancing communication; however, this effort becomes futile if there is a lack of effective negotiation and communication skills when conflicting interests arise between parties.

Global One, a globally shared resource, was hindered by a lack of communication among its three main parent companies. Deutsche persistently and unsuccessfully pursued a bid for Telecom Italia, while Sprint tried to navigate the merger of its French and German partners with MCI WorldCom. The inability to reach a collective agreement heightened tensions among the parental bodies of Global One. This lack of negotiation and communication was also evident in Global Communication.

The communication barriers and rumors became prevalent due to the forced relocation of VF Image Wear. Previously based in Martinsville, Virginia, the company used to dominate 75% of the global sweatshirt production. However, it was unable to stay competitive in the American market, resulting in its relocation to Mexico, Honduras, and Pakistan. This move allowed them to take advantage of lower costs and cheap labor available overseas. Unfortunately, this decision left thousands of loyal employees jobless, many of whom had dedicated their entire

lives to the company. With limited options and lack of education, starting over is challenging for these individuals. As a result of the overseas market expansions, the majority (85%) of their manufacturing jobs are now located abroad.

Global communication sought to expand its operations overseas to Ireland and England, resulting in a cost reduction of approximately 40%. Outsourcing has proven to be efficient for VF Image wear, enabling them to remain in the market despite having to lay off workers similar to Global Communication. However, by forming alliances with unions and employing effective communication strategies, Global Communication can overcome this hurdle more smoothly. Outsourcing is essential for Global Communication to remain competitive in its industry, but the company's executed plan lacks well-thought-out strategies and sensitivity. Therefore, Global Communication needs to take appropriate measures in order to regain financial stability.

Companies often neglect the important task of effectively managing costs on a monthly basis, including handling investment risks and maintaining a budget. This is particularly true when companies like Cable & Wires experience significant financial success and become overconfident, mistakenly assuming that their success will be permanent. However, if they do not carefully manage their finances, all the hard work they have put into building their business can come crashing down. This was evident in the case of Cable & Wireless, who ultimately filed for bankruptcy protection in the UK (known as in-land revenue protection) and in the United States due to their unstable debt to income ratio.

Having a team of experts who can regularly prepare and monitor costs on a monthly basis is crucial. This team can provide advice to the company and participate in important decisions.

In the modern Information Age, Yahoo! - which was present in the early days of the internet - is now losing out to Google. This poses a significant challenge, especially considering that Fortune 500 Magazine has recognized Google as one of the top workplaces, while Yahoo employees are openly discussing and exposing the mistreatment they experience.

Yahoo should offer additional benefits and assurances to employees to incentivize their continued dedication as the company expands and thrives with uncertainty. This echoes the situation at Global Communication, where employees who choose to stay and relocate to Ireland and England will face a 10% salary reduction. This creates an opportunity for rival companies to attract top talent. Retaining loyal employees who have put their job security at risk after witnessing numerous layoffs will require making significant commitments.

The text states that Global Communications aims to achieve multiple goals but must prioritize based on resources, time, and gain. Table 3 highlights five key goals for the company, including cutting costs and expanding into the global market. It emphasizes that failing to take action in these areas could potentially render Global Communications irrelevant.

Globalization has the potential to enhance cost reduction and profit increase for the company. By expanding its units overseas, the company can achieve a significant cost reduction of approximately 40%, which is why my second goal focuses on cutting costs. This cost-cutting measure is crucial for the company's long-term growth, as it enables them to compete with cable companies effectively. However, this expansion comes at the unfortunate expense of employee layoffs. Consequently, my third goal involves restoring the company's reputation, particularly regarding the way in which worker layoffs were conducted

without involving or considering the recommendations of the union.

Global communication should take all necessary measures to reassure its employees that such incidents will not occur again in the future and assist them in dealing with job loss. To differentiate itself from other companies in the industry, Global communication should strive to provide superior and highly skilled technicians, as mentioned in point 4 of my list. Lastly, the company's objective is to gain public loyalty by increasing investments. The support of the public will enable Global communication to expand its operations.

In Table 3, the top-ranked alternate solution is outsourcing. Outsourcing will assist Global Communication in competition within its industry and reducing costs by employing cheaper labor. This will ultimately lead to an increase in profit margin and rebuild investor trust. The second highest ranked solution is the reduction of non-value added costs. This cost reduction will also contribute to an increase in profit margin and the restoration of investor trust. The third highest ranked alternative solution is partnering with the union. This partnership will help restore the company's reputation and prevent negative consequences resulting from the disagreement with the union.

Transactions and negotiation play a crucial role in any organization, as evidenced by the scenario at GC. Despite having a well-thought-out plan, a lawsuit filed by the union due to poor communication can completely alter the course of events. The decision to relocate is made internally by the company's authorities before it is conveyed to the public. Speaking of goals, in terms of globalization, I gave it a rating of four because the need for an efficient communicator arises only when the decision to relocate is communicated

to the public.

I gave the second goal of cutting costs a ranking of five as it is the most significant aspect of the company's performance. On the other hand, I ranked restoring reputation a four because it is crucial for how the company is perceived by others. The choice of words and language used can greatly influence others' perspectives. Moreover, the lack of communication from the company was seen as a disregard for employees, customers, and unions.

Communication between the two parties could have prevented surprises and led to a compromise. Regarding GC's goal of providing sophisticated service, I ranked it as a two. It's plain and simple: you can't talk your way into offering good service; you either do or you don't. Additionally, increasing investments in GC depends on gaining public trust and belief in the soundness of their money management.

In my evaluation, I gave this a rating of four due to the impact of hiring an effective communicator. Such a person can persuade individuals to recognize the long-term benefits of their investment. This necessitates strong communication abilities. It is essential to thoroughly evaluate the risks and consequences of each alternative solution. By analyzing them in detail, you can determine their suitability. The initial alternative solution under scrutiny is cost monitoring. Primarily, when operating on a budget like many businesses do, the goal is to minimize expenses and maximize profits wherever feasible.

The potential drawbacks of cost monitoring, such as the utilization of cheaper overseas labor, have the potential to impact the overall quality of a company's service or product. Typically, companies face the challenge of balancing their budget while opting for a less skilled

labor pool in order to minimize expenses. In addition, budget constraints can impede the growth of research and development efforts and investments. To address these circumstances, it is advisable to employ a budget expert to avoid unnecessary expenditures and stay abreast of technological advancements through benchmarking against industry leaders.

The negative outcome of altering this solution does not limit my choice to implement it. The advantage of monitoring costs to avoid financial pitfalls can be addressed with a proficient financial team. I will also consider another solution, which involves providing greater benefits to the remaining employees. This will enhance their sense of security and reduce the likelihood of them leaving for a rival company. However, implementing this solution will raise costs for the company and may create confusion among the laid-off employees.

It is ironic that they could have kept all employees but instead chose to spend more money on increasing benefits. One mitigation technique for this situation is to increase employees' profit sharing percentage. However, considering the current circumstances of more people than available jobs, rejecting this technique may not have a significant impact as there will always be someone else willing to take the opportunity. After extensive research and analysis of Global Communications' benchmarks, I have developed a solution to make our discussed goals achievable.

The first step towards globalization is to enter the global market, which will enable the company to regain its position in the telecommunication industry and compete with cable companies. This alternative solution is a good way to expand internationally and effectively compete against other companies in the industry. As mentioned earlier in various examples (VF Image wear and Ford), outsourcing has

proven to be a successful strategy for reducing costs and driving growth.

Outsourcing is crucial as it will decrease costs for GC by 40%, thus increasing profits and positioning the company as a more competitive player in the telecommunications market. Additionally, relocating to Ireland and England will enable the provision of internet services to small businesses and offer more advanced services. A prime example of the benefits of outsourcing can be seen in VF Image wear, which would not have been able to thrive and survive in the textile industry without it. The success of Ford and General Motors, when observed in relation to outsourcing, further exemplifies its effectiveness.

For instance, Ford Motor Corporation opted to employ Magna International in Europe to manufacture certain parts. This outsourcing move has boosted Ford's global competitiveness, surpassing that of General Motors or Chrysler, aligning with Global Communications' strategic plan (Hoffman & Howes, 2007). Currently, relocating to Europe is the optimal solution for GC, albeit at the cost of US union workers. While this undesired situation is regrettable and GC could have handled the decision better, it remains a beneficial plan for the company.

Despite being a delicate and significant issue, addressing it requires significant compromise, tact, and willingness to consider different perspectives. Unfortunately, global communication failed to adequately convey plans to the telecommunication union, leading to direct implications for the employees they are responsible for. In such cases, it is crucial for companies to maintain a working relationship with unions to effectively implement plans that directly impact their workforce. This approach proved advantageous for Ford, resulting in a slight increase in performance through their collaboration with the union.

It is important to

note that working with the union or even your own business partner is not beneficial without effective communication. The absence of communication between GC and the union initially led to a potential lawsuit. Additionally, it resulted in rumors spreading through word of mouth due to a failure to communicate their plans to others. To address such situations that require sensitivity and tact, GC ought to employ an efficient communication team. This team should be utilized during negotiations or whenever it is necessary to address the public.

The importance of communication can be exemplified by Global One. If a clear communication route is not established, it can hinder the company's growth and expansion. To regain its reputation, Global One should implement the suggested solutions and become recognized in the market. After the incident between the Union and Global One, they might be perceived as unfriendly to employees. Therefore, it is crucial for the company to restore its reputation by promptly meeting with the union to reach a compromise that benefits both parties in the long run.

In order to increase investments in GC and gain the public's trust, it is vital to improve their reputation among employees and the general public. This can be achieved by employing an efficient communications team. Immediate action and a sense of urgency are required for implementing our plan successfully. The flawless execution and coordination of all members of the executive team are crucial for its success.

To start, we should issue a memo to employees that outlines the current situation and the company's cost-cutting procedures aimed at reclaiming our position as industry leaders. Additionally, it is essential to eliminate informal employee communication channels

and prevent speculation.

Next week, Katrina will be sending a memo to all employees in the company providing specific information about which departments will be affected and what they can expect in the upcoming months. At the same time, we should also aim to reestablish negotiations with the workers' union by sending a letter from Katrina Heinz and Joel Thompson. This letter will focus on our efforts to find a resolution with union leaders for the employees who will be laid off. We will outline how we plan to partially compensate for the loss of their jobs by offering benefits such as severance payments for a duration of time.

Our next step in filling the board and informing investors about the specifics of our new overseas locations will be conducting a market visibility study. To ensure a comprehensive and sophisticated market study, we will leverage Sy Rodriguez's extensive market experience. Once the board approves, the market visibility study will be included in our press release to the investors, along with a 5-year budget analysis prepared by the CFO. Given the current speculations surrounding our company's future and going concern, it is crucial that we release the press statement to investors no later than next month.

Dealing with cultural differences is a challenge when going global, opening offices in multiple locations, and using outsourcers. To tackle this challenge, it is crucial to consult with experts who have experience with various cultures. After issuing the press release, Global Communication will accept the proposal from the multicultural consultant. The success of Global Communication will be determined by its ability to achieve its goals quickly. Initially, Global Communication must rebuild itself and

establish a strong presence in both local and global markets to compete effectively against its rivals.

Within a year, the company's objective is to increase market share and sales by 10%, which would greatly enhance its position in the fiercely competitive telecommunications sector. Due to the time constraint, it must efficiently allocate resources to accomplish multiple objectives concurrently. Besides boosting profits, it is equally vital for the company to rebuild its reputation by delivering on commitments made to both employees and the public, whose support is essential.

Emphasizing the importance of a viable plan, it becomes clear that more individuals will be inclined to invest their money with the expectation of achieving financial growth. Within two years, I am confident in creating a well-thought-out strategy to present both the general public and employees with a strategic roadmap. Consequently, this will enable the trading of the company's stocks at $20 per share on the stock exchange. It is important to note the significance of involving employees in this endeavor. Despite not investing financially, they contribute their time and commitment, which is crucial for their well-being and sense of security.

GC needs to gain the trust of its top employees to prevent them from leaving for competitors. To achieve this, GC aims to reduce turnover by 30% in the next two years. Now that we have addressed qualitative measures, it is time to focus on quantitative targets. To improve its current situation, GC should implement cost-cutting measures to increase profitability. This involves increasing the profit margin percentage by at least 10% starting from the next year of plan implementation.

In summary, we analyzed GC's unsuccessful attempts to recover its economic losses

by deceiving its union workers, primarily due to poor communication. To find ways to regain momentum, we compared GC to similar companies and borrowed successful strategies. By tailoring these solutions to GC's specific circumstances, we identified areas for improvement. While some decisions, such as outsourcing, were correct, it was the execution of these plans that caused difficulties rather than the plans themselves.