Research and information gathering is an alternative that rates the highest on the scale and is the suggested first course of action.
It will achieve at a score of four, middle to high, rating on all three goals; increase share value, market intelligence, and globalization. Dell Canada is an organization that can be benchmarked against Global Communications because of the similar situation and industry they are in. Dell researched and gathered much information in achieving their goals, particularly when they decided to move to India, as well.Global Communications can improve the predictability and the consequences of their actions, like Dell, thus leading to a more successful organization. “Uncertainty means that the manager has insufficient information to know the consequences of different actions” (Bateman & Snell, 2004). Dell seemed to have read the picture well as five million computers and service were sold annually in India.
This number was projected to double in the next three to five years.Information gathering and research would enable better decision making which indirectly leads to increased share value with a better operating organization; it provides market intelligence, and also globalization efforts. This is the best alternative.
Making a move to India or a more global market, rates three for increasing market share, four for market intelligence, and four for globalization. This middle to middle to high rating is achieved and assessed at this level, because of the metrics that may be used to show significant advancement by the organization.A move to India may increase share value through increased market, and lower operating costs. It will provide increased market intelligence, as many other competitors have already moved to India.
It will also move the company into a global operation. This alternative is the second best. Alternative A to build a governance plan will achieve Goal A of increasing share value based on benchmarking other industry members in the same situation.Based on this information I rated the solution with a four on the middle to high scale in achieving the goals.
It did not however, rate very high in achieving the other to goals, so it was not considered the first or optimal alternative solution. For over a hundred years Bell Canada has served Canadians’ communication needs (Bell Canada Enterprises, 2008) and through this history as Canada’s leading communication organization, similar to Global Communications, they have had to deal with shareholder value.They have developed governance guidelines that assist in management decision making. “The process of considering multiple scenarios raises important “what if” questions for decision makers and highlights the need for preparedness and contingency plans” (Bateman & Snell, 2004).
Bell Canada Enterprises declares that they are committed to sound principles of corporate governance, which guide their decision making and behavior and that make Bell Canada Enterprises (2008) accountable to their shareholders.In order to address share value issue, their guiding principles and governance structure includes accountability to shareholders and increasing share value through these guidelines. They have a proven track record based on their quantitative measurement of increased share value, even thought their market has not been at the top of its game. I feel that based on this, Global Communications can achieve increased share value by putting a governance plan into place. It will take some time to implement, and measurement should only occur after about a year.Risk Assessment and Mitigation Techniques Risk associated with building a governance plan is in not getting adoption and acceptance of the governance plan. It will be costly and timely because I believe that an expert is required.
Acceptance and adoption will take time, as with any other change management. The consequence and severity of the risk and probability are very high. If there is no governance plan then the board and executive will continue to operate and make decisions that are not successful.It could lead to a break down in the organization as decisions are not based on equal grounds. New board members will have a hard time operating on the board without clearly stated rules. Mitigation techniques could include the use of a consultant or consultant group. While these specialists are viewed as high prices, over the long run they would cost the organization less than full time permanent staff. They can have expertise that will guide the process more efficiently and timely than someone in house.
They may facilitate sessions to include stakeholders.They may form groups that could define the problem and collect data through brainstorming, analyze the data through affinitizing, multi voting, and evaluating and selecting potential solutions by using a prioritization matrix. Additionally Global Communications can develop an action plan for implementation through the use of a tree diagram (Janasz, Dowd, and Schneider, 2002).
These problem solving tools will create more opportunity to looking a problems in a new way, and creating innovative solutions. Information and research gathering may also be costly and timely, but may be lower in risk.There is good probability of available information. The use of teams may increase available information.
Also the use of consultants can mitigate the cost and timeliness, like the above alternative. Teams will enhance decision making and critical thinking by establishing more available information, more perspectives and intellectual stimulation. This will enhance better decision making, understanding, and commitment toward change in an organization (Bateman & Snell, 2004). Globalization is the highest risk but may be the most reward.
It is rated second best as the alternative.Dell, Bell, IBM, and Saudi Aramco, all recognized that a huge decision like globalization and increasing business in other countries would have to be well planned and researched. They had much information regarding the potential market, the market demands, and expectations prior to moving to India. Furthermore Dell was able to create operations in India that impacted not only the globalization of sales, but cut costs so that prices to their consumer were reduced.
Based on this research it was rated highly. There is much proven success in this industry to moving into India.