Analysis and Problems of Global Communications

Such a decline in overall profitability is the most pressing problem facing the company; however, it is also the broadest in that several more specific problems contribute to this overall issue. One of the contributing factors is the need for new services and innovations in research and development. Such innovations require capital and financial resources, which relates to the problem of declining confidence among stockholders, who are wondering if they industry can recover from the competitive situation in which it currently finds itself. The problem of stockholder confidence therefore contributes to the lack of funds available for innovations and research, meaning that the company must find a way to increase profits without depending on stockholder confidence. .

             The initial attempt to address these financial issues, outsourcing many jobs to Ireland and India, has also created more problems for Global. The employee union feels betrayed and is threatening legal action regarding the layoffs. Additionally, the public relations issue regarding this outsourcing is an important one for Global to address in order to prevent a public backlash in response to the outsourcing and union-relations issues.

             Opportunity Identification.

             Despite the many problems facing Global, several opportunities exist for the company to grow and become as profitable as it was during the previous era. There is an immediate opportunity available to lower the costs of labor facing the company by utilizing the outsourcing plan and the labor available overseas. Such an action will free up company resources to be spent on research and development of new services and products, which will rebuild the base of Global Communications customers through the many services offered. Additionally, such an expansion in services will increase the market share for Global among small business owners, one of the company's overall goals, and offer the opportunity to reinforce a public perception of Global as one of the leaders in telecommunications technology.

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