Global Communications Issues and Opportunities

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Issue Identification

GC is facing both internal and external problems. Internally, the main problem is increased costs and reduced profitability. GC is currently facing 50 percent depreciation in their stock values. In order to improve this situation, GC needs to find a way to cut costs and improve profitability. Another internal problem being faced by GC is the loss of jobs that most of the employees would suffer. In order to cut their costs, GC has decided to outsource to India and Ireland. This will lead to many of the stateside jobs being lost and the few remaining employees will also suffer pay cuts. There are plenty of other issues surrounding this decision. The morale of the employees will definitely change and their attitudes toward the company might become negative after they have been informed of the job losses and pay cuts.
The union is also not happy with GC's decision and this is a huge internal problem. They feel like GC is unethical and trying to manipulate around the current contracts. The Union and employees had already taken a 20% cut to education and benefits, leading the union to believe that this will help the current situation. Now, they are just hearing about the outsourcing and imminent layoffs and salary cuts. The union is not happy.
Externally, GC's stock is now $11; instead of the $28 it was three years ago. GC needs to find a way to equal or better their stock value. They are facing increased competition in the industry and have to work extremely hard to catch up with the trend. Customers are demanding more technical sophistication and in order to keep their customers, GC has to meet up to these expectations. Other companies competing with GC might hear about the outsourcing and lure away GC's good staff before GC even has the opportunity to lay ...