Global Crossing Management

Global Crossing Management 1 Global Crossing Management Mary Adams MGT/330 April 6, 2010 Global Crossing Management 2 Global Crossing Management Global Crossing was founded in 1997 by Gary Winnick. They reported $3. 8 billion in revenue and $1. 9 billion in losses in 2000. Global Crossing is a leading global IP solutions provider. Global Crossing has developed the world’s first integrated global IP-based network, according to the About Global Crossing article (2010). The management of Global Crossing began the company by using all four functions of management. The planning function of management was the beginning of turning an idea into a success. According to University of Phoenix Week Two reading Planning and Strategic Management (2010), â€Å"Planning is the conscious, systematic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future. † There are six steps in the planning process that Global Crossing had to use in order to plan for the company’s future. The first step in the planning process is a situational analysis. A ituation analysis is when past events are studied, current conditions are examined, and future trends are forecasted. The second step in the planning process is developing alternative goals and plans. Goals should be specific, measurable, attainable, relevant, and time-bound. The third step in the planning process is evaluating goals and plans. Management should evaluate the effects of Global Crossing Management 3 the goals and plans, prioritize goals, and consider implications. The fourth step in the planning process is selecting the goals and plans that are the most appropriate. This will lead to a written set of goals and plans. The fifth step in the planning process is implementing the plans. Implementing the plan requires all managers and employees to understand the plan and to be motivated to implement the plan. The sixth step in the planning process is monitoring and controlling. Monitoring and controlling is necessary in determining if the plan is successful. According to About Global Crossing (2010), some of the Global Crossing management’s plans were to provide telecommunications, deliver services globally, and employ a team of dedicated rofessionals. Many different factors influence Global Crossing’s strategic, tactical, operational, and contingency planning. Some of those factors are Global Crossing’s management’s strengths and weaknesses. A strong management can work well together to develop strategic, tactical, operational, and contingency plans. However, if the management team is weak, the strategic, tactical, operati onal, and contingency plans may also be weak. The economy is another factor that can influence Global Crossing’s strategic, tactical, operational, and contingency planning. The plans may need to be different when the economy is good than when the economy is bad. Global Crossing Management 4 Scandals within the company is a factor that can influence strategic, tactical, operational, and contingency planning at Global Crossing. Scandals can affect trust between employees and managers as well as affect the trust that the consumers have in the company. Global Crossing has had some scandals that have influenced management planning. These scandals have brought about legal issues, ethic issues, and corporate social responsibility ssues for Global Crossing and the future of Global Crossing. Ackman (2002) stated that Global Crossing faced issues in 2002 when the company went bankrupt. Ackman (2002) also stated that Global Crossing and Gary Winnick were charged with â€Å"dishonest accounting, fraudulent swapping of assets and liabilities, and the enrichment of top executives† even though other employees lost millions. Greed seemed to be the downfall of Gl obal Crossing. Global Crossing faced ethics issues when it was discovered that Gary Winnick and former CEO, Leo Hindery, Jr. ere involved with insider trading. Another ethics issue with Global Crossing was capacity swapping. The new management team at Global Crossing see ethics as an important part of the company and the planning process. Ethics influence management planning at Global Crossing because it plays an important part in the planning process. When planning, Global Crossing’s management planned a code of ethics and business Global Crossing Management 5 conduct plan. According to Code of Ethics and Business Conduct (n. d. ), management at Global Crossing make sure that all employees review and agree with the Code of Ethics. If employees do not comply with the Code of Ethics, they will be subject to discipline and could even be terminated. At the same time that Global Crossing was facing ethic issues within the company, they were also facing legal issues. Insider trading and capacity swapping were both illegal. Gary Winnick, Leo Hindery, Jr. , and many others faced legal charges for their illegal activities. The new management team planned the Code of Ethics and Business Conduct plan to make sure the ompany does not get involved with any illegal activities again. Corporate social responsibility is an important part of Global Crossing and the management planning process. John Legere, CEO of Global Crossing, and management and employees of Global Crossing have developed many different programs that show corporate social responsibility in their planning. It is stated in Corporate Social Responsibility (2009) that Global Caring i s a worldwide program that developed an Employee Community Day. Each employee is granted one extra day off to pursue a charitable contribution to their community. MATHNext is an education program that Global Crossing has helped by providing technology, Global Crossing Management 6 donating laptop computers, and providing videoconferencing and web-based seminars. Global Crossing also participates in Going Green. Global Crossing is a company that has faced a downfall and with a new management team, has rebuilt itself. Many different factors can influence management planning. Issues such as legal issues, ethics, and corporate social responsibility can influence management planning. These factors and issues can make a company a failure with a poor management team. The same factors and issues can also make a company a success with a strong management team. Global Crossing has been turned from a failure to a success with a strong management team and proper planning. Global Crossing Management 7 References About Global Crossing. (2010). Global Crossing. Retrieved April 25, 2010, from http://www. globalcrossing. com/company/company_landing. aspx Ackman, D. (2002). House committees to investigate Global Crossing. Forbes. com. Retrieved April 25, 2010, from http://www. forbes. com/2002/03/13/0313topnews. html Code of Ethics and Business Conduct. (n. d. ). Global Crossing. Retrieved April 26, 2010, from http://www. globalcrossing. com/docs/Ethics/GlobalCrossingCodeofConductPolicy_eng. pdf Corporate Social Responsibility. (2009). Global Crossing. Retrieved April 26, 2010, from http://www. globalcrossing. com/company/company_global_caring. aspx University of Phoenix. (2010). Planning and Strategic Management. Retrieved April 22, 2010, from University of Phoenix, Week Two reading, aXcess, MGT330-Management: Theory, Practice and Application Course Web site.