Preview

The Impact of Globalization on Business Enterprises

Powerful Essays
Open Document
Open Document
2581 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Impact of Globalization on Business Enterprises
The Impact of Globalization on Business Enterprises
Janice New
University of Phoenix
Forces Influencing Business in the 21st Century MBA/501
Dr. Genny Turano Situation Analysis and Problem Statement American Communications is a telecommunications industry that is having financial problems and problems competing with cable companies, and other telecommunications companies. The company needs to find ways to cut cost so they can compete with other companies. This paper will outline challenges, opportunities, and dilemmas that may arise for American Communications due to the decision to outsource call centers. In order for American Communications to survive the company needs to frame the correct problem, identify the company 's goals, identify challenges, and possible dilemmas that may arise. American Communications must develop a plan to compete with other companies, provide good customer service and make a profit. The only way this can be accomplished is condition and state of the company must be analyzed and outlined correctly.
Situation Background (Step 1) American Communications is a telecommunication company that is on the verge of going under due to competition from other companies, which is resulting in a lower profit margin. This is causing concern among the stockholders. The stockholders are concerned that the company will not be able to rebound from the lost of profit caused by services offered by other intercommunication companies and the cost of labor for call centers.
American Communications has decided to try to cut cost to increase their profit margin. Profits will be used to add new services to attract new customers. The company has decided to cut cost by outsourcing their call centers.
Issue Identification There are several issues facing American Communications but the one that this paper will focus on is outsourcing call centers. American Communications will face several issues or



References: Amiti, Mary, Service Offshoring and Productivity, Evidence from the United States January 2006 Retrieved May 6, 2006 from Datamonitor Drezner, Daniel, The Outsourcing Bogeyman May/June 2006. Foreign Affairs http://www.foreignaffairs.org/20040501faessay83301/daniel-w-drezner/ the-outsourcing- bogeyman.html? Germain, Jack, The Security Implications of Outsourcing. Sci-Tech Today May 2006 Tutor2u, Comparative Advantage and gains from free trade. http://www.turor2unet/economics/content/topics/trade.htm White, Randall Global Spin: Probing the Globalization Debate. Where in the World are we going? Toronto: Dundurn Press, 1995

You May Also Find These Documents Helpful

  • Better Essays

    So my recommendation to resolve our problem is to expand nationally using the call center model in-house and with remote agents in the field. I will discuss the technology needed to make this happen while decreasing expenses and improving revenue. My recommendation are as follows:…

    • 1580 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    Smith’s Information Services is in the process of implementing a corporate overhead reduction program. This is due in part to the increasing costs of operating and maintaining an in-house data center, as well as flattened sales and reduced profits. For these reasons Smith’s Information Services is looking to outsource the company’s data center to an outside vendor. The increasing overhead costs include personnel costs to operate and maintain the data center’s servers, data center cooling costs, and electrical utility costs required to run the data center. Reducing these overhead costs, by outsourcing the data center, will help Smith’s Information Services to maximize profits in the face of increased growth potential for the organization.…

    • 1950 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    Outsourcing has become an integral part of many organizations today. Outsourcing has its advantages and disadvantages that organizations will have to weigh to decide whether or not outsourcing is the best possible solution to their current problems and business operations. Outsourcing refers to the process of hiring external provider to operate on a business or organization function (Venture Outsource, 2012). In this case, two organizations or businesses enter a contract where there will be an exchange of services and payments. This paper will discuss the possible risks an organization may encounter in outsourcing in relation to the use of an external service provider for data storage, use of an enterprise service provider for processing information systems applications such as a payroll, human resources, or sales order taking, use of a vendor to support desktop computers, and use of a vendor to provide network support. This document will also discuss the risk mitigation strategies for each individual situation.…

    • 1256 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    At&T Case - 1

    • 1865 Words
    • 8 Pages

    AT&T Consumer Products (CP) had never designed its telephones to be marketable. There was always demand for its products. The company was facing a new situation of tough competition, declining revenues and unacceptable profit levels. AT&T had to react to this new situation. AT&T invested tens of millions of dollars to upgrade and automate their production facility to decrease costs and become more competitive. This, however; did not help because the company found that their labor costs were still so high.…

    • 1865 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Internet-based industry is a growing industry with most companies having an annual growth between 6.5% and 8%. This is due to businesses that are becoming increasingly aware of the need for market information and the desire to reduce customer turnover rates in a hard hit economy. A significant trend in this industry is the growing number of clients who wish to outsource telemarketing functions to client companies instead of developing such infrastructure in-house.…

    • 1179 Words
    • 5 Pages
    Good Essays
  • Better Essays

    There are not many businesses that have the ability to function and have a successful future without some form of planning, and the correct organizing of the organization allows such a plan to be conveyed. By establishes the organizational hierarchy and the flow of managerial relationships. While CellCom has roots in providing quality local telephone service through Northeast Telephone Company, the company has stretched beyond any vision its founders could have imagined. As a major telecommunications entity in the upper Midwest, our growth has been spurred by the changing demands of our customers and their need to partner with a telecommunications provider they can trust. Meeting the needs of our customers in a personalized manner is our top priority and has been at the heart of our organization since its humble beginning in 1910. Providing extraordinary customer service is not only the blueprint for our success but the foundation for their future.…

    • 1114 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Mci Communocations

    • 1590 Words
    • 7 Pages

    Please see Exhibit 1 and Exhibit 2 MCI’s external needs will keep increasing over the next few years as the operating margins would shrink because of higher competition & higher access charges. In order to increase its market share, MCI would need to continue investing huge capitals in its network. As per exhibit 9 of the case, it is anticipated that MCI will increase its market share to 20 % in the next 6 years. The telecom industry is very capital intensive and in 1983 required $1.15 worth of investment in fixed plant & equipment for each extra $1 of revenue; that is first you have to build the network before you can sign up customers. The operating margin is expected to stabilize at 15% by 1990. But they are expected to vary substantially based on competition. It can go up to 22% or go down to 8%.…

    • 1590 Words
    • 7 Pages
    Good Essays
  • Good Essays

    This video focuses on the call centers that have been springing up in Mumbai, India. Many United State’s companies are investing in building call centers, training workers, and teaching their employees English. This proves to be more beneficial to the people of India than those within the company’s home country. Since 2000, over two million jobs have been outsourced to India. That is two million people that could have been employed in the United States; two million people that could be living a more prosperous and healthy lifestyle and two million people in another country benefiting from outsourcing U.S. jobs. Outsourcing continues to be a controversial issue as it holds many benefits for both the consumer and company, however there are also several negative aspects to it which can harm both parties.…

    • 1938 Words
    • 8 Pages
    Good Essays
  • Best Essays

    Verizon Case Summary

    • 3411 Words
    • 14 Pages

    A. Company History, Development and GrowthVerizon Wireless aspires for manageable development as a wide market leader in wireless services as well as for dominance in major wireless service markets. In both situations, the Verizon Wireless services will have to do critical roles. Verizon Wireless has the capability to establish its dominance in wireless service markets normally through acquisition of other powerful wireless service companies and their services, which are then integrated into a new, bigger organization. Giving training to its workers, enhancing the organizational functions, and the development of fresh innovations then establishes the positions of the different Verizon Wireless services. This logically leads in economies of…

    • 3411 Words
    • 14 Pages
    Best Essays
  • Satisfactory Essays

    Future Trends in Globalization Schema: Consumers are becoming more outspoken and demanding in their food choices. According to the Puratos Group, there are 10 future-proof consumer trends for the food industry. Themes include overall quality perception; openness and…

    • 435 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The role of the call center is growing in the service industry. Our vision statement recognizes the position of call centers as technological advances are made to deliver superb customer service relations. Technology will be the deciding factor in achieving objectives. The larger customer relations firms are poised to continue out-sourcing their services which leaves a void for customer service relations opportunities in the United States. Our vision to continue to grow our work-at-home program is a strategic measure and a competitive advantage that we feel will continue to set us apart from the competition. The overall logistics of the work-at-home program must be modified to ensure the success of the candidates that desire to service client customers from home. This program is a key objective to future growth…

    • 603 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Module 3 Discussion

    • 552 Words
    • 3 Pages

    From first glance at this statement, it seems like a line that from businesses to help justify their offshoring practices. This statement is one that seems like it would come out of the PR department when consumers are voicing their displeasure over the company’s choice to offshore their processes. It is definitely not the truth for a company in today’s economy. I have a number of friends that work for Nationwide Insurance here in Gainesville Fl. It is mostly a call center operation here and they are constantly hearing rumors about the company moving the operations over seas to save money. If Nationwide does end up doing this at some point, it will not be because of a lack of qualified people to do the work. With Gainesville being a college town, there are plenty of available and qualified employees to accomplish the work. Maybe this is one of the mains reasons they have not yet outsourced this call center.…

    • 552 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    First, American Cable and AirThread could help each other compete in an industry that was…

    • 5626 Words
    • 23 Pages
    Satisfactory Essays
  • Good Essays

    Is Outsourcing Good

    • 693 Words
    • 3 Pages

    Outsourcing has been practice for decades, it happens when companies or business contract a third party, someone outside the business, to produce goods or provide services. Outsourcing can be local, within the same country or offshore, outside the country. Some of the job areas companies outsource are Accounting, Customer Services, Human Resources, Information and Technology and Payroll. Outsourcing supporters affirm that this activity provides substantial cost savings to businesses, through paying less to others do their job, at the same time they can lower prices of goods and services. Although outsourcing brings benefits to a company, this activity may limit the quality of products and the availability of…

    • 693 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    As mentioned before, the Television Department experienced a loss in first quarter of 1994. The accountant believes that discontinuing the product will be best alternatives for the company as a whole. But, before they make a decision, it better for them to identify theses key issues:…

    • 1255 Words
    • 6 Pages
    Powerful Essays