Economic turmoil forced Global Communication to take drastic measure to bear on on top in the tough, competitive telecommunication industry. Their strategical plan to transform into a global corporation in spite of appearance 3 years was immediately approved by the board. However, they were wrong by not considering all avenues in their planning stage. The employees and the gist were not inform of the decision, the plan was based on an competitive approach to increase revenue and profits; leaving no room for negotiation. Therefore, lead to an undesirable conflict continuum (Kreitner & Kinicki, 2003) between the companionship and the stakeholders.
Situation Analysis
Issue and Opportunity Identification
Declining stocks on Wall pass puts the telecommunication industry in a panic, and Global Communication is no exception. Their stock price plummeted 50% to $11 per share, from a high $28 per share three years ago. The plight forced the company to look at new modern way of doing business. The company will introduce new service catering to vitiated businesses and consumers. Furthermore, they will form partnership with artificial satellite provider to compete against cable companies offering broadband and radiocommunication services.
In addition to introducing new services, CEO Katrina wants to implement an rapacious globalization strategy to increase both revenue and profits. The strategic plan will involve massive layoffs of employees in the small business center. And, for the remaining employees, they will be relocated with 10% salary reduction. According to Katrina, Global Communication will be able to reduce cost by 40% if the expert call center was outsourced to India and Ireland. This, no doubt created a win-lose placement in which the employees get the worse deal.
Stakeholder Perspectives/Ethical Dilemmas
Economic twinge has made the top executives lose perspective on what is important. Including, qualifying against their ethical and philosophy...If you want to get a full essay, value it on our website: Ordercustompaper.com
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