Global communications has been going through turbulent times due to the increased competition. To minimize the effect of this economic pressure, the top management of global communications decided to device a massive strategic plan regarding the future which included outsourcing much of their technical requirements to India and Ireland to reduce per unit costs by around 40%. This decision was solely taken to steady the rocking boat of the company and the help the company sail through the tough time.
1. The major issue that the company is facing right now is an increase in competition that has shown its face by the declining profits and share value prices. As the competition has increased, global communications has not been able to counteract their competition’s moves in a better manner and hence are paying by the decline in their profits. To counteract this problem, the plan a strategy that included outsourcing to Ireland and India which may result in massive downsizing in the country.
The strategy opened the horizons for the company and increased their opportunity of competing in the market on low cost and better expertise. As the company would progress under the new strategic plan, they would get better chances of expansion as they would be saving on costs, and this would result in creation of bigger and better opportunities for the employees later.
Although this strategy would help the company regain some of its costs, it is costing them their image and serenity; global communications was known to own a competitive edge because of its integrated and dedicated force. Such a blow to the strength of the company would be appalling in the long run. Another problem that they faced during the course of time was the communication gap between the employees and the upper management. They kept the Union Liaison uninvolved and hence had to pay the price in the end. This huge mistake can make the company lose on the competitive advantage as more and more employees become uncertain of the honesty of their top management.
2. In order to understand the problem and turn it into a opportunity with a focus for future goals, global communications needs to take steps and implement strategies that take the organization and its employees together; if the forget the organization’s strength in order to strengthen their organization, they will be making a grave mistake as this would lead to losing their competitive advantage. Therefore, they need to look into the future keeping in mind what the employees have brought to the organization and how they can help in taking the organization to new heights.
Therefore, Global Communications needs to device a strategic plan that helps in the growth and stability of the organization, keeping in mind the competitive advantage that their employees get them. This can help them develop an opportunity out of the problem that they facing. By integrating the workforce in the strategic plan, they can get the push they need to revive their company and help in its growth, internally and externally.
