Problem Solution: Global Communications
Global Communications is faced with diminishing business in the communications industry. To reassert Global Communications presence in the market, a proactive strategy is required to increase revenue, improve stock value, and expand the customer base, while reducing overhead and operational cost. There are additional requirement to identify the source of diminishing revenue within the industry.
To address the issues, Global Communications will implement the 9-step problem-solving model to identify and address problems, and establish a process to improve Global Communications stock value. The 9-Step model is process to; define the situation, identify and frame the core issue, articulate end-state goals, potential alternatives, and evaluate alternatives. The model also identifies and assesses potential risks, decision, a means to develop and implement a solution, and evaluate the result (Borders, 2009, p. 2-3)
Issue and Opportunity Identification
Global Communications was a successful telecommunications company that enjoyed stock value at $28 per share and a decent portion of the telecommunications market. Over the past three years technology has evolved at a rapid pace resulting in the telecommunications market share shrinking. Additional cable companies began applying substantial resources to provide complete service packages and as a result, Global Communications stock value decreased by more than 50%. The declining performance has shaken the shareholder’s confidence in the telecommunications market and placed Global Communications in a reactive mode to the situation.
Global Communications has a skilled labor force and was known as company that took care of it people. (E-mail) Applying senior leadership and shareholders strategies will potentially damage the relationship between Global Communications and the Technologies Workers Union. Although conflict is fact of life in all organizations, (Conflict; Source and Solutions page 243 the McGraw-Hill Com, 2001 DeJanasz-Dowd-Schneider: Interpersonal Skills in Organizations) Global communications senior leadership ensured conflict was inevitable. Global Communications senior leadership adapted an avoidance conflict style which allowed leadership to address the shareholder interest without adequately analyzing the feedback from employees. (Meavens, 2003, p. 150). Global Communications strategy is both a public relations risk and the opportunity for competition to hire former employees. The employees were excluded from the process and did not have representation in the planning. This has the potential to result in negative results. By avoiding negotiations with the union, Global Communications managed to separate the people from the problem and focus on group interest, as opposed to positions. (Meavens, 2003, p. 156). However, leadership failed to generate a variety of possible solutions for mutual gain and insist on objective criteria for choosing a solution. (Meavens, 2003, p. 158) Global Communications has also secured partnerships with a satellite provider to offer video services as well as satellite version of broadband. Global Communications also secured a partnership with a wireless provider that will be able to allow a small business owner anytime internet access using wireless telephone or PC cards.
The Technologies Workers Union is a valuable members of the Global Communications organization which has accepted a 20% cut in health and education benefits in past to support the company’s restructuring strategy. (M. Antez, personal communication, 3 March, 2004) In order to implement the new strategy and realize an immediate reduction in cost, Global Communications is forced to confront the Technologies Workers Union with layoffs, retraining, and salary reductions again for the short term so the company can restructure and implement the new strategy within the limited window of opportunity.
Global Communications has the opportunity to stimulate growth by reversing the declining stock value and increasing market share by implementing a strategy which expands domestic market capabilities by implementing new services in the small business and customer service. The increased service expands to consumers in both local and long –distance markets. Global Communications can realize an opportunity to improve technical sophistication by outsourcing to call centers to Ireland and India.
To implement the domestic and global growth strategy, Global Communications will implement an aggressive marketing strategy which includes the international market, relocate technical call centers to India and Ireland; downsize domestic call centers which will result in a potential 40% reduction in unit cost for handling calls. Competing in the global market and expanding the support capabilities increases revenue potential while also providing unlimited potential in technological growth and expansion.
Global Communications has also realized a potential conflict with the Technologies Workers Union as a result of recommended layoffs to downsize domestic call centers. Global Communication has offered relocate some union workers at a 10% salary cut. However, the potential exist for volatile exchange from the union. By developing a strategy which rewards the union for long-term planning with Global Communications in supporting the new strategy, the Technologies Worker Union will be treated as a partner of Global Communications as opposed to an exterior service. The improved relationship will strengthen the ability to meet the objectives of the shareholders and demands of small and mid-sized business clients. Global Communications has developed a strategy to increase business and profits, while maintaining a sustainable and profitable business strategy for shareholders.
Stakeholder Perspectives/Ethical Dilemmas
Global Communications primary goal is to achieve profitability and improve the return on investment as defined by shareholders. The shareholders are entitled earn a profit on shares. Global Communications senior leadership team must maintain integrity, honesty, and accountability in reporting the condition of the company. The leadership team is also is expected to remain loyal to the stockholders financial stake and interest of the company. The Global Communications leadership team also expects the Technologies Worker Union to perform task assigned without negatively impacting or diminishing the stock value.
Global Communications senior leadership team requires loyalty from stockholders once an agreed upon strategy is implemented and the Technology Workers Union to understand the necessity to downsize in order to save the company long-term. Substantive communications is critical between all parties within Global Communications for the company to be successful.
The Technology Workers Union has a vested interest in the company and is entitled to expect Global Communications to apply fairness, and respect to the Technologies Worker Union as a result of the long standing good relationship and loyalty the company has received from the Union workers. The union has agreed to cuts in benefits in order to support reorganizations efforts. The union set asides it beliefs that cuts were bad in order to support the long-term goal. Based upon the union’s belief in the working relationship with the company, the union’s behavioral intentions was to trust Global Communications leadership to ensure the interest of the union would be mutually achieved with Global Communications objectives.
GC loyal focus to the stockholders run the risk of Decisions encountered and made before, having objectively correct answers, and solvable by using simple rules, policies, or numerical computations.(page 66, Ch 3 Managerial Decision Making Organizational Behavior) Small business expects GC to deliver the promised services and support to sustain business.
Global Communications will become an industry leader by increasing market share and value by implementing cost cutting measure to reduce operating and overhead cost to posture the company as an agile organization ready deliver technological sophistication to expand customer service and market presence.
Global Communications will become a leading telecommunications company built on the foundation of quality people who apply global resources to deliver superior and cutting edge technology with unrivaled customer support to business clients. Global Communications will expand technical center capabilities to compete in the Global Communications market by offering enhanced technological services to attract new clients. The increased customer base will increase stock value to $28 within two years. In addition to increasing stock value, Global Communications long-term committed is achieving a 55% sustained growth in stock value over a five year period.
Global Communications is further committed to realizing 30% growth in business clients over a five year period. The growth strategy is a combination of 10% domestic market and 20% global market. Global Communications will further increase health and education benefits by 20% within three years provided the 30% growth is realized.
To remain a viable industry leader, Global Communications will aggressively market to the small business and consumer services and will continue to explore smart growth opportunities consistent with the, “Our Edge Is People” philosophy (J. Thompson, 2004) by effectively collaborating mutual interest of share holders, business clients, and global communications and inclusive to the concerns of the Technologies Union Workers
In developing alternative solutions to challenges facing Global Communications, Wal-Mart was an excellent example of a company which engages a multi-pronged business strategy.
Wal-Mart has a local and global presence that has consistently blazed a trail of growth through productivity, and efficiency, with its fair share of controversy and challenges in the mix. Wal-Mart’s globally sourced model consists of low-prices and low-wages. With nearly 3,550 stores visited by roughly 100 million people each week, Wal-Mart is a convenient shopping mecca for American consumers. (Wal-Mart: Impact of a Retail Giant August 20, 2004 Liz Harper)
The Wal-Mart strategy is applicable to Global Communication. Global communications will engage business partners to maintain low prices and controlled wages to establish a strong foundation in the communication market. Global Communications unlike Wal-Mart must negotiate carefully with Technologies Workers Union to control wages.
Wal-Mart has unique business strategy towards innovation that boosted efficiency and productivity ahead of Wal-Mart’s competitors. Wal-Mart’s unique system consists of a sophisticated distribution and information technology system. (Wal-Mart: Impact of a Retail Giant August 20, 2004) The efficiencies of the system has resulted in reduced labor cost and maximized use of time which has resulted in improved productivity. The results made Wal-Mart more profitable than competitors.
Wal-Mart has further enjoyed sustained market growth by being inclusive and partnering resources with strategic alliances such as a P& G. P& G relies on a simple strategy, to use Wal-Mart’s large customer base as a fertile distribution center for P&G products. As a result, Wal-Mart has invited its major suppliers to jointly develop powerful supply chain partnerships. The goal was to increase product flow efficiency and increase Wal-Mart’s profitability. (Wal-Mart Supply Chain Management Harvard|Business|School working knowledge for Business Leaders Al Byrnes Column – Supply Chain Management in a Wal-Mart World 8/4/2003 http://hbswk.hbs.edu/archive/3616.htm copyright 2003 Jonathan L.S. Byrnes) Combining resources and inventory control allowed Wal-Mart and P& G to also share sales and marketing. P& G viewed Wal-Mart as a customer and became focused in maximizing Wal-Mart’s profitability.
Global Communications can apply the same strategy on a smaller scale to effectively align business partners with business clients to meet and expand small and mid-size business opportunities. Global Communications is an ideal distribution channel for the combined services while the strategic partners build a robust marketing campaign to push the expanded services to compete with the cable companies.
An additional example of innovation was Southwest Airlines online booking service. In 2008, online bookings reached 78% via southwest.com. (2009 Southwest Airlines Co., 1998)To increase customer service, Southwest initiated “SWABIZ,” a tool that assists company travel managers in booking and tracking trips made through southwest.com. (2009 Southwest Airlines Co. ) In 2008 online bookings increased to 78% via customer using southwest.com. (2009 Southwest Airlines Co. ) As a result of SWABIZ sales increased by17% between 2007to 2008. (2009 Southwest Airlines Co. ) Southwest airline was the first airline to establish a homepage on the internet. The website development team was comprised of five Southwest employees. A tribute to Southwest success is 66% of Fortune 500 Companies are enrolled in SWABIZ. (2009 Southwest Airlines Co. ) By effectively using the internet and online service to meet customer demands and expand services Global Communications can deliver enhanced services at low prices with low maintenance cost.
Kelleher stated, “Having a relatively simple value system expedites things.” (Brelis)This strategy focuses on the customer demand of getting from point “A” to point “B” on time at an affordable cost. The customer demand is similar in the communication market with targeted request. Global Communications will further benefit from implementing a point to point distribution strategy similar to Southwest Airlines. Southwest Airlines focuses flights from point to point as opposed to operating from a hub. (Brelis, 2000) The point to point strategy encompasses a flight taking off point A and arriving at point B. The point to point strategy was instrumental in controlling personnel expense as opposed to operating from a hub. A hub would have required and a large crew managing banks of flights operating on variable schedules. This has reduced Southwest Airlines from leaving the hub empty for several hours until the next flight. What is evident in Southwest Airline operational strategy is efficiency. Global Communications like Southwest Airlines will apply targeted and efficient customer service to meet customer demand.
Global Communications lean and agile structure will allow for expansion into new and global markets. The pattern is based on Southwest airlines lean and flexible business model which postures the airline to enter troubled markets when other airlines begin retreat. Southwest is able to do this, due to their cost structure and esprit de corps. (Brelis, 2000) Southwest is ready move on an instants notice by keeping cost low through focused productivity.
Communications was also addressed in benchmarking by Southwest’s strategy in working with employees. Employees are critical to the success of Southwest Airlines business strategy. Southwest depends on an energized business culture focused on the success of the airline. The core strength of Southwest Airlines remains people. Southwest’s deliberative process in hiring the right people to fit the corporate structure of the company. James L. Heskett, a Harvard Business School professor stated, “Southwest’s hiring process has helped keep the airline on top.” (Brelis, 2000) The people are the strength of Southwest Airline. Having the right people requires a special selection process. Southwest focuses on fostering a family feel. The success of inclusiveness is favorably reflected in worker productivity. Of particular note, Southwest airline is 77% unionized. (Brelis, 2000) Southwest airline leads every major airline.
Global Communications has placed pride the employees of the company and must regain that trust and pride forging ahead. Global Communication will align the Technologies Workers Union with Global Communications strategy by attaching the success of the company to increased benefits that were originally sacrificed as a result of the economic challenges.
Analysis of Alternative Solutions
To best meet the various demands to improve Global Communications, an alternative solution evaluation matrix was used. The system consisted of ratings 1 – 5, with 5 being the highest value. The best strategy to improve Global Communications market presence and realize sustain future growth is a combination of measures highlighted in the analysis of alternative solutions. The combination consist of aggressive cost cutting measures, downsize domestic call centers, and outsourcing customer service functions offshore, delivers and immediate saving in overhead expense will shrinking corporate footprint to allow for agile operations able to meet fluent customer demands. The next step in the solution is creating strategic alliances with satellite video, broadband, and wireless providers, and the capabilities to deliver remote access to data will increase Global Communications to deliver an elegant customer service package tailored to the small and mid-sized business. The final piece, align Technologies Workers Union with Global Communications objectives is necessary to ensure sustained long-term growth.
The final step is an inclusive measure which does not weigh favorably for increasing monetary value. However, union cooperation is critical in delivering a stable and talented work- force that is ingrained in the corporate strategy. Addressing the emotional intelligence of the Global Communications workers is essential to emulating a similar atmosphere as experienced in the Wal-Mart and Southwest Airline. Maintaining a desirable and inclusive business culture will foster continued communications and opportunities to expand business.
Risk Assessment and Mitigation Techniques
By aligning Technologies Workers Union with Global Communications objectives possess risk in limited opportunities to meet shareholder objectives. The bottom line is, the company must be profitable to survive and shareholders will replace leadership with executives to make the necessary improvements. Although aligning technologies Workers union with Global Communications goals is desirable; the union of the two is improbable due to the nature of both parties. Although a harmonious relationship can be realized through negotiations, increased benefits and merging union workers performance goals to company performances, the fact remains, the Unions focus and loyalty is in representing the best interest of workers to the shareholders and Global Communications leadership and Global Communications leadership goal and loyalty is to share holders and ensuring the company is profitable.
Introducing a new international marketing campaign will yield minimal results and increase expense. Until new technologies are realized and strategic alliances are in place and additional services realized by customer’s growth is limited in marketing alone. Global Communications must establish a presence to build upon a marketing campaign. The risk is too high at this time. The best strategy is once brand preference is established by implementing the measures to increase services a marketing campaign will work based upon testimonials and preference. The alternative is to share marketing expense with strategic partners to minimize cost for all strategic partners.
The best solution is a combination of best practices observed during the Gap analysis study. Global Communication must increase stock value. In order to accomplish the goal several challenges must be addressed ranging from a saturation of competitors in the market, improving technical sophistication, improved communications with the Technologies Workers Union, controlling operational cost, and posturing Global Communications to sustain a leading and competitive posture in the communication market.
To accomplish the various challenges, Wal-Mart, Southwest Airlines, and Marriott were selected to benchmark best practices. Both companies specialize in strong customer service, strong employee relations, an elegant and sophisticated distribution system, and efficient operational process. The solution to address is employee relations.
Global Communications must implement a strategy which integrates shareholder interest, workers performance, and the solvency of Global Communications. In order for Global Communications to develop innovative ways to enhance employee relations with a sincere focus to build a strong company, several companies were reviewed with proven results.
Marriott International is a company with tested proven results. As observed in CNNMoney.com, “Marriott International, Inc. is ranked as lodging industry’s most admired company and one of the best companies to work for.” Marriott accomplished this by applying resources to understanding observations and recommendations of staff through the use of companywide Associate Opinion Survey (AOS) each year. The survey is used to evaluate Marriott’s performance and gauge the solvency each property as viewed by the Marriott’s.
Implementing a similar strategy will allow Global Communications to seek and sustain market share in the communications market by effectively applying market intelligence as observed by line level through executive staff.
Global Communications will benefit from implementing tools such as Marriott’s AOS by improving dialogue and communication with the Technologies Workers Union. The AOS is a resource that will allow global Communication and Technologies Workers Union to reconcile differences and promote open lines of communication to address and resolve a range of issues that potentially impact the interest of the workers, company leaders, and shareholder interest. This strategy will ensures everyone on the Global Communications team remains focused towards the same long-term vision of sustainability and profitability.
Global Communications must sustain current customers while aggressively pursuing new customers and expanding market share. In order to develop a strategy to meet both objectives, Global Communications reviewed several companies programs as potential examples to emulate. Companies Global Communication reviewed were Wal-Mart, and Southwest Airlines. Once effective lines of communication are in place and the Technologies Workers Union and Global Communications alliance partners are working towards the same goal, customer service becomes the natural component of the business.
Southwest Airline executives state, “Employees come first, customers second.” (Herb’s way) In applying a similar strategy, Global Communications could accomplish the same by being more inclusive with the Technologies Workers Union in planning the long-term vision as outlined by the shareholders. The employees come first mantra is based on including relevant input and requested resources by staff to meet business objectives as outlined by the shareholders. Inclusiveness best describes Southwest Airlines employee relationship. The 1999 Air Transport Association reported, Southwest had an employee –to-passenger ratio of 1 to 2,424, followed by Alaska Airlines at 1,518 and delta Air Lines at 1,493. (Brelis)
Personal relationships are critical in maintaining and growing Global Communications customer base and potentially expanding strategic alliances to better support and offer enhanced services for customers.
Wal-Mart’s example of good customer service is rooted in the ability to offer quality low cost goods. Global Communications can apply the same method by working with strategic partners in delivering expanded services at low prices.
If employee relationships and customer service is the meat of company, then technology provides the sizzle. Improving technology and innovation for Global Communications is exciting for both the customer and staff. A natural company to review for innovation ideas was surprisingly, Wal-Mart’s strength is technology and strategic alliances to maintain global dominance. Wal-Mart’s unique system consists of a sophisticated distribution and information technology system. (Harper, 2004) The efficiencies of the system has resulted in reduced labor cost and maximized use of time which has resulted in improved productivity. The results made Wal-Mart more profitable than competitors.
Wal-Mart’s strategy was a partnership with Proctor & Gamble. The two companies shared vendor-managed inventory, category management, and other intercompany innovations. (Byrnes, 2003) The combining of resources and inventory control allowed the two companies to also share sales and marketing. Proctor &Gamble viewed Wal-Mart as a customer and became focused in maximizing Wal-Mart’s profitability.
By establishing market presence Global Communication will be able to exert influence on suppliers and manufacturers to reduce cost. The result may yield similar results as Wal-Mart; Global Communications will be able to offer products at lower prices than other competitors. The strategy will allow Global Communications to sustain and expand market share and value for stake holders.
To meet the fluent demands of the global market and remain accountable to shareholders and treat the union as a fair partner, Global Communications will apply an Eastern Reflective Approach. The Eastern Approach is, calm thinking and taking time to consider carefully (“Reflective versus expedient decision making: Views from East and West“, 2007) the impact of decisions.
The model used was an incremental model. The advantages of the model were to, develop and deliver in increments after establishing an overall architecture and Requirements and specifications for each increment may be developed. (Fairdeal Software Consultants PVT. Ltd (FDSC), 1994, ¶ 3)
Eight deliverables are identified as critical in meeting the objectives to increase stock value in Global Communications. 1) Increase revenue and profits within three years. Mrs. Katrina was brought into Global Communications to increase profits and 2) develop a strategy to increase Global Communications financial growth within three months. To attract new business, 3) Create innovative packages small and mid-sized businesses. Mrs. Nancy Everhardt is responsible to introduce new services from partners two months prior to implementation of strategy. Mr. Joel Thompson must 4) Align Technologies Workers Union with Global Communications restructuring objectives three months after the strategy is implemented. 5) Maria Antez and Joel Thompson will implement Global Communications restructuring strategy with the Technologies Workers Union within six months after the growth strategy is implemented. 6) Show decrease in overhead expense three month after financial growth strategy is developed and implemented. Joel Thompson will oversee the process. 7) Joel Thompson will control public relations from the planning stage through the five year growth period. 8) One year after strategy implementation, Mr. Sy Rodriguez will increase revenue opportunities and implement domestic and global growth strategy.
The 13 – Step incremental model is the linear process Global Communications to use to implement and execute the implementation of plan. The 13 – Step incremental model is ideal to integrate management, marketing, and human resource management elements into the implementation process. Steps 1 – 3 of the 13- Step process are addressed are formulated in the 9-Step decision making model. The 13 – Steps will consist of , 1) Understand markets and customers, responsibility is global communications leadership 2) Develop vision and strategy, 3) Design product and service, 4) Market and sale, 5) Produce and deliver product for service, 6) produce and deliver for service organization, 7) Invoice and service customers. The additional six steps focused on management and support processes. 8) Develop and manage human resources, 9) Manage information resources and technology, 10) Manage financial and physical resources, 11) Execute environmental safety and health management program, 12) Manage external relationships, and 13) Manage improvement and change. (M. Martin, personal communication, July, 2001)
By following the 13 steps, a critical path is developed to help define and establish a long-term operational which effectively integrates with the 9-Step decision model. The process is a transparent operational plan and is an inclusive process to decision making team. The results are achieved by addressing the heart of decisions making, indentifying problems and opportunities and resolving them. (Kreitner & Kinicki, 2004, 2001, 1998, 1995, 1992, p. 208)
Evaluation of Results
Measurement of Global Communications strategy will consist of a variety of metrics. Or priority is to stop depreciation of stock value and generate substantial positive value within three years. Financial performance will be measured using a combination of monthly and quarterly operating statements. Quarterly operating statements are the preferred method in reviewing financial progress. However, the monthly statements will provide Global Communications with fluent information and a real time snap shot to analyze the immediate impact of the strategy. Real time information provides Global Communications adequate time to adjust growth strategy and realign resources as necessary to improve performance.
Monthly, quarterly, and bi-annual financial statements provide a good litmus test to growth pattern of the Global Communications and measuring the growth in the domestic and global markets.
The financial statements provide a living document highlighting the performance of the company where metrics are easily obtained and effectively align the Global Communications operating strategy with the share holders. Once satisfactory results are achieved the Technologies Workers Union education and health benefits will increase since the increase will be minimal impact to the bottom line.
Controlled, logical and systematic change is how Global Communications will answer the shareholders demand to increase stock value by competing in a competitive communications market. In researching various companies, it became evident Global Communications is no different from any company in today’s market. Benchmarking is the desired tool to adapt proven methods from industry leaders to improve Global Communications opportunities to achieve End-State-Goals. The industry leaders all shared some common characteristics, good customer service, production work relationship with partners and workers, controlled operating cost, smart innovation, and measurable performance standards.
By benchmarking successful companies to explore opportunities to meet new objectives, understanding benchmarking is not a competitive analysis is important in analyzing opportunities. Benchmarking is the basis for change. It is about learning. (“Benchmarking“, n.d.) Benchmarking is used to compare different company’s performance using subjective and objective observations. The 9 – Step Decision Making Model is the key to facilitating controlled change to meet objectives and operate in a fluent business environment. The key is marinating discipline throughout the process and effectively managing conflict and emotional intelligence to keep the groups productive to meet mission objectives.
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Issue and Opportunity Identification
Issue Opportunity Reference to Specific Course Concept Concept
Stockholders are bemoaning diminishing Global Communications (GC) returns.
The stockholders have realized a greater than 50% loss in stock value and are in unchartered territory in the telecommunication business. A quick response is required to adjust the company strategy. The nonprogrammed decision approach can lead to success, but the uncertainty of the market has risk.(Kreitner & Kinicki, 2004, 2001, 1998,1995, 1992, p. 208) Global Communications to expand current business opportunities and restructure the company to operate more efficient A nonprogrammed decision is made when the situation is unique, and there are no previously established routines or procedures that can be used as guides. Situations that require nonprogrammed decisions are poorly defined and unstructured, and they have important consequences for the organization.(Kreitner & Kinicki, 2004, 2001, 1998,1995, 1992, p. 208) nonprogrammed decision
GC’s outsourcing plan to India and Ireland will result in significant layoffs. GC used a distributive approach in planning and discussions with TWU. A clear win-lose scenario is immediately evident. (Kreitner & Kinicki, 2004, 2001, 1998,1995, 1992, p. 504) Conditions remain less than perfect form of rationality for GC to make a decision. There are too many variables in the decision process. (Kreitner & Kinicki, 2004, 2001, 1998,1995, 1992, p. 84) Relocating some technical call centers to India and Ireland increase global presence and Reduce unit costs for handling calls by 40%. Small business owners will benefit from increased technical sophistication. Improve marketing strategy to a global presence. “bounded rationality, decision makers cannot be truly rational because (1) they have imperfect, incomplete information about alternatives and consequences; (2) the problems they face are so complex; (3) human beings simply cannot process all the information to which they are exposed; (4) there is not enough time to process all relevant information fully; and (5) people, including managers within the same firm, have conflicting goals.
(Kreitner & Kinicki, 2004, 2001, 1998,1995, 1992, p. 84) Bounded rationality
GC new strategy is perceived to counter the GC “Our Edge Is people” philosophy. By GC implementing the strategy the TWU feels the basic philosophy has been abandoned by GC.
TWU is faced with the prospect that if GC is unable to turn the business around, the company may not exist in the future. GC is able renegotiate the GC and TWU to efficiently expand business by operating in a global market Framing effects refer to how problems or decision alternatives are phrased or presented, and how these subjective influences can override
objective facts.(Kreitner & Kinicki, 2004, 2001, 1998,1995, 1992, p. 76) Framing effects
Technologies Worker Union (TWU) feels GC is unethical and applying affective conflict as a result of the TWU (Kreitner & Kinicki, 2004, 2001, 1998, 1995, 1992) giving up 20% its education and health benefits in order avoid layoffs. The natural reaction is to approach discussions with feelings. GC was able to keep a trained workforce. GC is displaying reasonable loyalty to employees by Affective conflict is emotional and directed at other people. Affective conflict is likely to be destructive to the group because it can lead to anger, bitterness, goal displacement, and lower-quality decisions. Cognitive conflict, in contrast, can air legitimate differences of opinion and develop better ideas and problem solutions.(Kreitner & Kinicki, 2004, 2001, 1998,1995, 1992, p. 81) Affective conflict
Stakeholder Groups The Interest, Rights, and
Values of Each Group
Global Communications (GC) stockholders Entitled to earn a profit on shares. GC senior leadership team must maintain integrity, honesty and accountability in reporting the condition of the company. Loyalty to the stockholders financial stake and interest in the company. Expect the TWU to perform task assigned without negatively impacting stock value.
Global Communications and senior leadership GC senior leadership team requires the stockholders to remain loyal to the GC senior leadership once an agreed upon strategy is implemented and the Technology Workers Union understand the necessity to size in order the save the company long-term.
Technology Workers Union (TWU) GC is also responsible to apply fairness, and respect to the TWU. Accountable and loyal to the interest of the workers in the Union, respect the overall goal of GC to remain profitable and competitive in the market. Fairness in negotiating with the GC leadership team concerning TWU workers issues. GC expect reliable and consistent video services as well as broadband service, and delivering consistent wireless access to include remote access to the mainframe to GC customers from satellite providers. GC’s expansion strategy is dependent upon the expanded service. GC loyal focus to the stockholders run the risk of Decisions encountered and made before, having objectively correct answers, and solvable by using simple rules, policies, or numerical computations.(page 66, Ch 3 Managerial Decision Making Organizational Behavior)
Small Business Clients Small business expects GC to deliver the promised services and support to sustain business.
Analysis of Alternative Solutions
Risk Assessment and Mitigation Techniques
Risk Assessment and Mitigation Techniques
Alternative Solution Risks and Probability Consequence and Severity Mitigation Techniques
A,B, and D • One of GC’s partners goes out of business
• GC is dependent upon external resource (partner) for growth
• TWU personnel display low moral • Unable to increase market share
• Degradation in quality of work
• Negative public relations • Provide cross training opportunities for TWU
• Share marketing and distribution expense
• Share innovation
A • GC leadership loses trust and loyalty of TWU
• Negative public relations
• Communication barriers as a result
• GC & TWU relationship deteriorates
• Difficult future negotiations with TWC
• Degradation in quality of work
• Remaining TWU strike • Peg sustained growth
Success with Increased
benefits to TWU
• TWU long term vested interest in success of strategy (advocate)
D and E • Limited opportunity
to meet shareholder
• Customers limited
financial resources • Minimal to no profit improvement
• Increased expense with minimal to no return on investment
• Share marketing cost
and research with
Optimal Solution Implementation Plan
Deliverable Timeline Who is Responsible
Increase revenue & profits Three – Five Years Mrs. Katrina Heinz
Develop strategy to increase Global Communications financial growth Three Months Mrs. Katrina Heinz
Create innovative packages of valuable solutions for small – medium business Two months prior to implementation of strategy Mrs. Nancy Everhardt
Align Technologies Workers Union with Global Communications restructuring objectives Three month after Global Communications Strategy is implemented Joel Thompson
Implement Global Communications restructuring strategy with Technologies Workers Union Within six months of Global Communications financial growth strategy developed Maria Antez
Decrease overhead cost Within three months after Global Communications financial growth strategy developed Joel Thompson
Control Public Relations message From planning stage through five year growth period Joel Thompson
Increase revenue opportunities and implement domestic and global growth Strategy One year from strategy implementation Mr. Sy Rodriguez
Evaluation of Results
End-State Goals Metrics Target
Increase GC stock value Bi-annual stock value reviews Realize 55% within 5 years
Improve technical sophistication to business clients Research & Development quarterly progress and new out sourced alliances
Expand business in domestic and global markets Monthly financial statements
(operating statements and balance sheets 30% market share increase
Decrease overhead expense Monthly Operating Statements and Balance Sheets 30% decrease to overhead cost
Improve TWU education & Health benefits After 30% market share realized; bi-annual corporate operating and balance sheets 20% increase in TWU education and health benefits