Situation Analysis and Problem Statement.

             The pending expansion of Global Communications into the international arena has significant implications, both positive and negative, for the corporation. Although the company is going through a difficult time at the present, with stock depreciations, a lack of innovation, and pending layoffs, the potential for growth and for increased profitability with the new direction chosen by the company's executives is very real. If Global Communications can address the challenges immediately facing it, take advantage of the opportunities which are available, and at the same time balance the needs of competing groups of stakeholders, it can realize several of its long-term goals as outlined later in this paper. .

             Situation Background (Step 1).

             Diminishing returns across the entire telecommunications industry have negatively affected the stock and profitability of Global Communications. Excessive amounts of competition from companies worldwide have diluted the market as well as offered a wide range of features that Global Communications does not currently provide. Small providers offer specialized services, and larger multinationals offer lower prices and more competitive service choices. Global Communications has chosen to address this problem by simultaneously attempting to cut costs while expanding internationally; their primary method of achieving these immediate goals is through closing some domestic call centers and opening new centers overseas. The employees' union has obvious problems with this strategy of layoffs and outsourcing, and has questioned Global Communications' loyalty to its workers. The company faces significant problems, both fiscally and intangible issues such as employee loyalty.

             Issue Identification.

             The first of these issues is the declining price of Global Communications stock, presumably due to the increased amount of competition in the field.