Global Communications

GLOBAL COMMUNICATIONS

Task A: Problem/Opportunity Statement

Instructions for Task A: In the Response row, write out the problem/opportunity statements for the scenario for each of the team members.

Response to Task A:

∑ Global Communications can use satellite technology and strategic partnership to regain market share and become a global leader in telecommunications.

∑ Global Communications will meet our customer and shareholders' needs by creating by creating win-win partnerships that stimulates product expansion.

∑ Global Communications can become a world and industry leader by outsourcing some of its operations to revive the company's financial health.

∑ Global Communications can recover its position as a market leader in the telecommunications industry by negotiating the most profitable solution between its international labor and union representative.

∑ Global Communications can break away from the current stale communications market and successfully place itself as a successful pioneer in its field.

∑ Global Communications can expand into a global market without reducing its American footprint.

∑ Global Communications can become an industry leader by outsourcing labor and operations cost to revive the company's financial health.

∑ Global Communications will meet our customer needs by product globalization and customer service superiority.

Generic Benchmarking--The purpose of generic benchmarking is to identify potential solutions to the problem statements defined in Task A. You will do this by looking at how companies in other industries have dealt with similar issues.

Task B1: Generic Benchmarking: Topics

Instructions for Task B1: In the Response row, identify the topics for which you need information in order to identify potential solutions to the problems identified in Task A.

∑ In the Response row, list three to five topics that you will research in peer-reviewed journals, on Web sites, and in popular publications such as magazines and newspapers.

∑ In the Response row, provide a justification for each topic.

Response to Task B1:

Topic 1: Outsourcing

This is only for a portion of operations, not the whole company. By outsourcing expensive technical or physical labor jobs, the company can save on labor costs. Many countries like India have the technical background to support this venture with the cheap labor. Outsourcing would not only provide savings through compensation but the company can save money by eliminating benefits to contractors (outsourced employees) and not being mandated by the government to pay for workman's compensation and other types of insurances required here in the United States but not in foreign countries such as India and Ireland.

Topic 2: Image reform/ Redesign Product Packaging

The company has been in a declining market position for some time now. Redesigning the company and its image will set itself apart from local and global competition. Advertising and marketing a new image will boost the initial momentum Global Communications needs to transition into the global market.

Topic 3: Create Strategic Alliances

Strategic alliances and partnerships are important for increasing both market share and company position among competitors. According to Ireland, a "strategic alliances are cooperative arrangements between two or more firms to improve their competitive position and performance by sharing resources". Through these alliances or partnerships to include satellite providers, Global communications has the opportunity to offer product packages that will promote more competition due to their increased technical advantages combined with lower cost to the customer. Through partnerships with satellite and wireless providers, a full range of telecommunication products can be offered.

Topic 4: Expand Global Market Presence

According to Business Wire the Asian telecommunications market is estimated to be worth around $270 billion (2005). Expanding Global Communications' international presence is an opportunity that can also add a competitive advantage to services that will follow business customers worldwide. Entering global markets will also increase the global presence and reduce dependence on domestic market. There are some challenges to global expansion and one of those is cultural differences. By outsourcing labor to foreign countries many of our differences will be overcome as they take ownership of company interests while providing a lower costing overhead to increase overall customer service.

Task B2: Generic Benchmarking: Companies

Instructions for Task B2: In the Response row, identify companies that have faced and addressed similar situations (successfully and unsuccessfully).

∑ In the Response row, list two to three companies for each topic identified in Task B1.

∑ In the Response row, identify those that have been successful and those that have been unsuccessful.

∑ In the Response row, summarize your key findings for each company as they relate to the scenario.

Response to Task B2:

1. Outsourcing

Life Time Fitness

After Life Time Fitness collaborated with an outsourced foreign company (India) for the programming development aspect of the organization, Life Time found that they had several flaws in their contract. They relied too much on the other company, particularly on the coding/programming only to find out much later that there were serious errors in the programming and the program did not satisfy Life Time Fitness' expectations or requirements. Life Time Fitness clearly identifies the company's pitfalls or errors prior and during their collaboration with the Indian company. These pitfalls or errors would provide guidance to Global Communications as it attempts to outsource its technical jobs to India and Ireland. Through Life Time's mistakes, Global

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