Carnival Fascination Cruise

So we just finished our first cruise with Carnival. I found the ship pretty well set-up. We enjoyed the water slides and the mini-golf. My son really enjoyed Camp Carnival so much so that that's where he wanted to be the whole time. I also liked the fact the the build a bear was not over-priced and my son could get a nice souvenir. The room was pretty nice and the price was good. My son really loved the towel animals they made for him and the people taking care of the room were very friendly although they did forget after the first night that we wanted two schedules everyday. We managed though so no big deal. The food wasn't too impressive and I was not happy that the two things I wanted one evening were both out. There was no asparagus soup or grilled zucchini although both were on the menu and we went to eat pretty early. We stopped at Freeport and Nassau in the Bahamas and had a day at sea as well. I'm not a fan of cruises but this one I managed pretty well. I have found that the spas on the ships are a little over-priced as are the pictures but I guess since the prices for the rooms are pretty good if you book early enough you can't complain too much. The service in the Sensation Dinning room was on and off. We had my time dining and were seated quickly. I did like that you could get pizza, coffee/tea and ice cream 24hrs a day.

Is hoping

That this trip home with family will help deal with this new turn of events in our lives. Having a child with a rare disease turns your world upside down and you need the support of family and good friends to help you deal.

Bad News - My son is sick

It has been a week or so since some bad news has been confirmed.

My 7 year old son was recently in the ER back in April with pneumonia. he was given some IV meds and sent home. We thought everything was well. About 10 days later, he had abdominal pain again and off to the ER. They gave him different Antibiotics and sent him home again. Within a day he spiked a fever of 105 and then again. This time he was admitted to the hospital for severe pneumonia with unknown cause. Not good. He then was given different antibiotics again via IV for the next 8 days. The worst part is he looked fine on the outside but was very sick on the inside. Unfortunately due to his illness our trip home was cancelled/postponed we have yet to see.
While there the doctors did all kinds of test trying to figure out what was going on. Towards the end of his stay there is a possibility that they may have discovered what it is and it is not good.
A few days later they confirmed their suspicions, my son most likely has a rare disease that effects his immune system called Chronic Granulomatous disease a.k.a CGD. The doctor decided that one test was not good enough and we tested my son again and the same results were returned a week later. So now it is almost 99% sure that he has CGD but 100% wont be known until after the results of the genetic testing that the National Institute for Health will be doing.
This has been very hard on me. I have read up on this disease and there are so many stories and some of them are very sad. I love my son with my life and can't imagine a life without him. I am so afraid of losing him. He is a constant joy to me. As this disease is so rare, there real is no support group in our area and the doctors are only vaguely familiar with it so I have to look for good sources on line.
He has had to start taking anti fungal and antibiotics that he will take for the rest of his life to help his small body fight off the things his white blood cells are unable to do. The danger infections for him are any bacterial and fungal infections. The worst part is that since his body can't fight these, his body does not show normal symptoms that he is sick. We have to be ever vigilant, watching for any little sign of sickness.
I wish I could be near my family but currently I don't have that option unless I want to quit my job and let whatever happens to our home happen. That is not a logical or realistic thought so I will continue daily to search for work closer to home.

Ramada Airport North Hotel Charlotte - 1st Stop to Jamaica

I was going to do an overall post on our trip to Jamaica but realized it would probably be very long. So I am going to start with the first hotel we stayed in. It was the Ramada Airport North Hotel in Charlotte NC. I decided to get a hotel room because we were leaving super(0600am) early in the morning out of Charlotte which is a good 2hrs and 15mins from us.

Now to the hotel, I booked from the Ramada website directly just so I would have more flexibility and the price was reasonable. The last time I booked with them was on our trip to Maggie Valley and the room was great. This was one on the other hand left room for many improvements.

The first room we were assigned smell so bad that there was no way we could stay there. The second room smelled fine but when I pulled back the sheets, they were dirty. The third room was fine. The carpets are VERY dirty. I would not step on them barefoot and when my son walked on them with his socks, they became filthy pretty quickly. It is certainly a basic hotel but I was not comfortable with the area based on how it looked. I do have to say the front desk person was very good about switching rooms though.

The hotel's restaurant was under construction but they had a sign that said you could let them know if you want something and they would call the cook. I found this very odd and certainly did not feel that was a way to handle it. I was going to order something but for about 15 minutes the desk was unattended so we just left.

When we checked out in the morning, I had to ask specifically for a receipt. After I made it to the airport and I checked it, they hadn't even officially checked me out of the room as it said on the receipt the cost was still owing. This made me very paranoid and I am still waiting to see if I get charged more than once.

The pictures are of the second room, I got tired of taking pictures of the new room but it gives you an idea of how it looks.

Time for another class

So after my week break I am starting my next class, accounting and finance, I am already confused and it's only the first day.

It has been a nice break, I think I will have to do this between every class. I probably should have seen if I could start my class after my birthday but it's too late now. I still haven't decided where I should go for my birthday but I'm leaning towards Disney World, duh I have a free ticket lol only valid on my birthday.

While I am on the topic of vacation or travel, I can't wait until Thanksgiving when we go visit our good friends Tennessee. We haven't seen them in ages. It will be a nice week away although of course I will still have class but what else is new.

It's almost that time

For my birthday that is and I am trying to decide what to do. My current options that I am taking into consideration are: Orlando (because I get into Disney World free on my birthday), New Orleans, Charleston, Chapel Hill (because there is a football game on my birthday)... I have 4 whole days off to celebrate because it so happens that my usual Friday off falls the day before and the Monday after is Columbus Day an official holiday.

Of course the main thing I have to take into consideration is cost because I will have to pay for 3 of us, my son, my mom and myself.

Orlando is good because I get in free but tickets for the other 2 on that day are around $150. The other issue is that I don't know what to do on the Sunday that wont cost out the.... Orlando is also a 7 hour drive from here.

Chapel Hill will have me spending $167 on the tickets for the game and then we would have to find something else to do and that drive is 5 hours.

New Orleans well is New orleans need I say more and that is over 9 hours away.

Charleston on the other hand is the closest at 3 or so hours. It is a beautiful city at least from what I can remember from the last time I was there.

Gap Analysis: Global Communications

Gap Analysis: Global Communications

Global Communications is currently among one of the telecommunication industry’s companies that is waning. Its stock has lost more than 50 % in value and Global Communications will face so challenges in making it appreciate again. Global Communications is also facing an increasing number of competitors. Global Communications has to look at all the current issues to try and find opportunities that may lie among them. Global Communications has to focus on choosing the right problems that will present the most opportunities to stay competitive and that are synced with the company’s goals.

Global Communications situational analysis shows that the primary issues and opportunities for them are their competitors and the stock’s depreciation. The management team has developed a strategic plan to secure the financial future for the business. The strategic plan has identified its primary issues and opportunities that will hopefully lead the company to becoming a competitive global firm.

Situation Analysis

Issue and Opportunity Identification

Global Communications have developed a strategic plan but without consulting the union which has caused a veil of distrust. The union just recently agreed to a 20 % cut in education and health benefits so it has come as a surprise to the union that the company has plans in motion for layoffs and out-sourcing. The senior management team did not include the union when developing the strategic plan.

This would be a good time for the company and the union to enter into integrative negotiation. Integrative negotiation is used when an agreement can be found that is better for both parties than what they would have reached through distributive negotiation. Integrative negotiation calls for a progressive win-win strategy (Kreitner & Kinicki, 2004, p. 504).

Global Communication stock has dropped significantly within three years and the increase in competition has required GC to look into a new direction. In this kind of situations, Bateman and Snell (2004) might suggest nonprogrammed decisions that can be used for diversification into new products and markets. They have already implemented something like this by making the decision to do some outsourcing and laying people off without consulting the union. They have already made an alliance with a satellite company that will increase the products they are able to offer as well as partnering with a wireless company. Another thing they need to work on is their global marketing.

To find a new way to market their products Global Communicating should first look at their current marketing methods. This would be defined as the first step in problem solving by De Janasz, Dowd and Schneider (2002). To continue with this process the next step would be brainstorming which will give the opportunity for creative thoughts and ideas in how to approach global marketing. Once they have come this far they will need to organize the choices and then make some decisions on which are the best and most viable suggestions. Then implementation is the last step and should be incorporated when they have a solid focus on their new products and services they can offer globally.

For a company to be a smooth, efficient company, the communication system in place must do its job. Without a way to keep employees and the public informed the company would not be able to run effectively. Communication with employees at this time is very important, as there will be a great deal of changes in the near future.

First the senior management has to choose the best medium to communicate the changes that will be coming. According to Kreitner and Kinicki (2004), choosing the appropriate media depends on many factors, including the nature if the message, its intended purpose, the type of audience, proximity of the audience, time horizon for disseminating the message and personal preferences. The fact that the strategic plan has already leaked to the board members of the union shows that the time horizon for informing the employees is immediate. The sooner the management gets the message out on what is going on and why the better. They should also be quick to implement some of the ideas that were brought up at the meeting like implementing career counseling.

Stakeholder Perspectives/Ethical Dilemmas

There are four main stakeholders in this scenario, the Management that represents Global Communications, stockholders, the union and employees and the customers.

The customers’ main interests are the cost of doing business with Global Communications. Customers are also looking to see if the company is staying up to par in regard to technology and services. They want to be treated fairly and want the product to be reliable. Customers are what sustain a company and they should be provided with world-class customer service, which can keep customers even through hard times.

The union’s main concern is how the employees are treated and what benefits they receive. The union tries to be fair when negotiation but they must put the employees first. Global Communications is expected to be honest and loyal. Employees have been loyal in the past to Global Communications as they have always been rewarded for it but with the new strategic plan there is a conflict due to the outsourcing and layoffs.

Management has a priority to reduce costs yet increase services. They are focusing on becoming a global competitor and believe that outsourcing is the way to go to achieve this. For management to work effectively they must work together cooperatively and coordinate with each other when trying to make decisions that effect the company as a whole. The management wants discipline within the company and must communicate effectively to make sure policies, rules, and company ethics are well known and upheld.

Stockholders main interest is the price of the stock. They want to know who needs to be held accountable for the drop in stock prices as well as who will be the one to bring the stock back up. Stockholders value reliability in the sense that if Global Communications has a good product then they can rely on the stock increase again. This is also in line with having quality products and services.

The main ethical dilemma and conflict of interest is between management and the union when it comes to outsourcing jobs and laying people off. The union feels it has been very flexible in reducing costs by taking a 20 % cut in benefits but management has disregarded this and decided layoffs and outsourcing is a better way to cut even more costs. There was a major lack of communication between the two parties.

End-State Vision

Global Communication’s End-State Visions will provide the company a set of measures to focus on and how they were able to overcome their problems to reach a successful conclusion.

The company’s end-state vision is:

“Become a global competitor with our ability to provide new satellite and wireless services, and all of our old reliable services customers were accustom to at a rate that keeps us competitive but never forgetting that our customer service must be top notch. We need to reestablish and build our relationship with the union and our employees who are the backbone of the company.”

Gap Analysis

First Global Communication must solidify its relationship with both the satellite provider and the wireless provider so they can start offering package bundles to their customers. Once this is accomplished a marketing plan needs to be put in place to globally announce these new products and packages.

To be able to provide these services at competitive prices, the company will need to cut costs and sustain itself on less. This need is being filled by outsourcing technical services to Ireland and India, which will reduce the costs of handling calls by nearly 40 %.

The communication process between the union and management needs to be fixed. The union has a strong influence on the employees and could cause many problems if an attempt is not made to repair the problem. Global Communications wants a strong workforce they can rely on and to do this the flow of information needs to be controlled as well as effectively disseminated.

Conclusion

The Global Communications situation has provided an interesting look into the current issues some telecommunication companies are currently facing. The company’s stock had depreciated by more than 50 % in a three-year period and there was tremendous economic pressure from Wall Street to have the company rebound to a more profitable share. Global Communication has seen its competition increase and cable companies introduce bundle packaging.

To try to compete with these services Global Communications has to grow by joining with a satellite and a wireless provider. If they focus on the new services they can provide and bundle packages, they will be come as competitive as the cable companies. To go beyond the cable companies, Global Communications will need to focus on their international business as well. Their global marketing strategies as well as their outsourcing will help them go in this direction.

Global Communication has to repair its relationship with the Union and try to work with them on helping employees with the change that will come due to the strategic plan the senior management has put together. They have to work on the communication strategy so that the union and employees are better informed.

References

Bateman, T. S., & Snell, S. (2004). Management: The new competitive landscape (6th ed.). New York: The McGraw-Hill Companies.

De Janasz, S.C., Dowd, K.O., & Schneider, B.Z. (2002) Interpersonal skills in organizations. New York: The McGraw-Hill Companies.

Kreitner, R., & Kinicki, A. (2004). Organizational behavior (6^th ed.). New York: The McGraw-Hill Companies.

McShane, S. L., & Von Glinow, M. (2005). Organizational behavior: Emerging realities for the workplace revolution. New York: The McGraw-Hill Companies.

.

Table 1

Issue and Opportunity Identification

Issue	Opportunity	Reference to Specific Course Concept (Include citation)	Concept
Global Communications has developed a rocky relationship with the union with several mistakes they made one being that they did not ask for input from them when developing the recent plan. Part of the plan is to relocate and reduce salaries and this looks like undermining the contract they just negotiated with the union to reduce health benefits and education benefits by 20%.	Have an immediate meeting with Marie Antez and other union members for a brainstorming session to come up with other solutions that could lead to a win-win situation.	“Compromising is a give-and-take approach involving moderate concern for both self and others. Compromise is appropriate when parties have opposite goals,”(Kinicki & Kreitner, 2003, p. 500)	Handling Dysfunctional conflict by compromising.
Global Communication is facing a lot of competition, which has made their stock drop more than 50%. This has decreased the confidence of stockholders, which is putting pressure on management.	Becoming a global competitor by increasing new services and bettering old ones.	“Nonprogrammed decisions are novel and unstructured. [They cause] much uncertainty regarding cause-and-effect relationships. [It’s a] necessity for creativity, intuition, tolerance for ambiguity and creative problem solving. [This is good for] diversification into new products and markets,”(Bateman & Snell, 2004, p.67)	Non-programmed Decisions
Global Communication’s employees will feel that the company has let them down and may become angry when the layoffs or changes come about due to outsourcing. GC has not give their employees any warning of this plan.	The opportunity to communicate with employees in regards to the options they may face. Provide information on employees’ options to stay and move to other departments or encourage them to relocate with the thoughts of new experiences in new places and make sure employees are aware of severance for the employees that must be let go.	“Communication refers to the process by which information is transmitted and understood between two or more people,”(McShane & Glinow, 2005, p.324)	Communication

Table 2

Stakeholder Perspectives

Stakeholder Perspectives
Stakeholder Groups	The Interests, Rights, and Values of Each Group
Customers	The cost of doing business with GC and getting a good product for their money. Customers expect to be treated fairly and the product to be reliable.
Union/Employees	The Union focuses on the benefits and rights of employees. The Union tries to be fair in its negotiations. Employees want to keep their jobs and think their loyalty should be rewarded.
Management/Global Communication	Management’s interest is in cutting costs and making a profit. They also want to become a global competitor. Management relies on cooperation and coordination within its senior team
Stock holders	Want the GC’s stock to go back up. Their values lie in the quality of products and services GC is providing that will increase over value of the stock. They want to know who is accountable for the stock’s decline.

Table 3

End State Goals

End-State Goals

GC must solidify its alliance with the satellite provider and start marketing this new resource that GC will have.

GC has to partner with a wireless provider to be able to offer small businesses more ways to stay in contact and have anytime Internet access.

GC has to reduce costs to customers while at the same time becoming a company that can sustain itself on less.

GC will come up with a global marketing plan within the next quarter.

Repair relationship with the union and employees.

Emotional Intelligence

No matter what company anyone works for, emotions will always factor into the workplace. “Emotions create a stats of readiness...They make us aware of events that may affect our survival and well-being. Some emotions are particularly strong triggers that demand our attention, interrupt our train of thought, and generate the motivation to act on the environment,” (McShane & Von Glinow, 2005, p.111).

Blockbuster had a good idea with their GameRush stores as their were implementing a form of FISH!. McShane and Von Glinow define FISH! as: play, make their day, be there and choose your attitude. By having tournaments and having their employees wear “hip” attire, Blockbuster gave employees the opportunity to have fun with video games, interact with customers, and come to work with a can-do attitude.

Healthy emotional intelligence among employees can prepare them better for the unexpected at work like sudden layoffs, mergers or changes within the company. EI requires people to have “the ability to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others,” (McShane & Von Glinow, 2005, p. 131). With several companies as well as with Global Communication EI was not present in the executives meetings and was limited in the meeting with the union. The ability to regulate emotions within meetings is something most executives should strive for. According to McShance and Von Glinow one must master relationship management which is the highest level of EI and requires proficiency in the other 3 dimensions of EI, self-awareness, social awareness, and self-management.

Reference

McShane, S. L., & Von Glinow, M. (2005). Organizational behavior: Emerging realities for the workplace revolution. New York: The McGraw-Hill Companies

The Cultural Challenges of Doing Business Overseas - MMPBL/501 FORCES INFLUENCING BUSINESS IN THE 21ST CENTURY

It can be challenging for an American company to be successful overseas. When attempting to go overseas with a bushiness venture they have to take some risks when making business decisions. The franchisor for Chicago Style pizza, Steve Kafka, is an American of Czech origin and he has decided to try his hand at expanding his business to the Czech Republic. When he first became a franchisor it was a risky decision and he had to overcome a great deal of difficulties. Kafka anticipates these same kinds of problems when he opens his new location in the Czech Republic. He was born in the United States but has family and friends in the Czech Republic and he speaks fluent Czech. Kafka has visited the Czech Republic several times, which has helped him understand the people and the culture. For this business venture to be successful Kafka has to take into consideration cultural differences and evaluate how these will affect the business decisions he must make. Kafka has to also become familiar with any trade barriers he might have with the Czech Republic and how to deal with the macroeconomics and microeconomics realities that will affect how he prices his pizzas.

Kafka may be familiar with the Czech culture but he has to keep in mind that there are still differences in handling business in the U.S. versus the Czech Republic. Another thing that he has to keep in mind is that although he is going global that does not mean that it will be just like in the U.S. Taking the environment and capitalizing on it when franchising into a foreign country can be a successful way to enter new markets. One thing that Kafka should take into consideration is keeping operating expenses down. He can do this by using the local markets in the Czech Republic for ingredients instead of having to import them. By not importing these items, he is minimizing the risk in one area that could fail. Kafka will have to take into consideration how the Czech people like their dining environment compared to Americans. In Europe, dining is a more social event and needs more of a relaxing environment whereas in America, most like to get in and out of a place so the actual environment isn’t as important.

When evaluating the Czech business environment, Kafka should take into consideration Hofstede’s four primary dimensions (Hodgetts, Luthans and Doh, 2005). In order for him to ease successfully into the Czech Republic business environment, it will be helpful for Kafka to determine which category the Czech Republic fits into. The best way for Kafka to accomplish this is to use his personal experiences, discussions with friends and family there as well as researching the country.

The power distance of the Czech Republic is 57(Clearly Cultural, n.d.). In the United States the power distance is 40, this can be good for Kafka because he is the person in the position of power. If he is a good leader, his employees will be more willing to be subservient than in the United States. The uncertainty avoidance in the Czech Republic is 74 (Clearly Cultural, n.d.) which is much higher that the U.S.’s 47. This can affect Kafka because the Czech employees will expect the expansion to be successful and that they will have jobs in the future. A benefit for him is that the employees in the Czech Republic will accept lower wages. In regard to individualism, the Czech Republic is in them idle with an index of 58. Kafka will have to make a big adjustment here, as the U.S. index is 91. This is where Kafka has an advantage because he already knows the Czech culture is a tight knit type of people and this is how he was raised. The masculinity index is around a 57 (Clearly Cultural), which is lower than the U.S. and shows that in the Czech Republic women are considered to be almost equal where powerful, successful women are respected.

Franchising in a new country will always have some kind of barriers. Although the Czech Republic is a country where it is not expensive to enter the business trade, there are trade barriers, court proceedings and complicated tax legislations to consider. The European Union has specific rules and policies that must be followed. According to the U.S. Commercial Service 2008, Kafka has to take into consideration the value-added tax of 9% that is charged for select goods such as food and services and the 19% for all other goods both domestic and foreign sold in the Czech Republic Another tax he has to consider is the excise tax which is “…imposed on the following goods produced or imported into the Czech Republic: fuels and lubricants, tobacco products, beer, wine and liquor. The rate is determined by the type and quantity of the product and must be paid within ten days after being notified by the Customs Office of the tax amount due,” (US Commercial Service, 2008).

Cost structure is an important part of business planning when considering franchising. IN the Czech Republic, Kafka can take advantage of cheap labor. According to the Czech Republic website, now is a good time to start franchising because the younger generation is adopting more of a Western culture when it comes to eating out. Pizza is considered a treat because many people still do not go out as much as they do in the U.S. Kufka has to take this into consideration when deciding on a price for his pizza. It is the older generation that has the disposable income where as it is the younger generation that is more likely to eat out. Kafka should have introductory prices to attract all the customers for example, buy one slice get another slice half off with a free soda. He has to take into consideration that pizza is a very high elastic item and that if he charges too much no one will be interested in visiting his place.

When deciding to do business in a new country, many things need to be taken into consideration. The cultural differences will impact how business is done. Trade barriers and minimizing costs need to be taken into consideration. Although Kafka has a background that supports his knowledge of the Czech culture and people, it is advisable that he does research to make sure that he approaches this business venture in the right way. As long as Kafka incorporates his knowledge and the local community, his venture into franchising overseas should be successful.

References

Clearly Cultural. (n.d.). Making Sense of Cross Cultural Communication. Retrieved August 8, 2009, from http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/power-distance-index/

CultureGrams. (2009). Czech Republic. Retrieved August 7, 2009, from http://online.culturegrams.com.ezproxy.apollolibrary.com/secure/world/world_country.php?contid=5&wmn=Europe&cid=41&cn=Czech_Republic

Czech Republic - The Official Website. (n.d.). Visit Czech Republic. Retrieved August 8, 2009, from http://www.czech.cz/en/economy-business-science

Hodgetts, R. M., Luthans, F., & Doh, J. P. (2005). International Management: Culture, Strategy, and Behavior (6th ed.). New York: The McGraw-Hill Companies.

US Commerical Service. (2008). Czech Republic: Trade Regulations, Customs and Standards. Retrieved August 6, 2009, from http://www.buyusa.gov/czechrepublic/en/118.html

Environmental Analysis MMPBL/501 FORCES INFLUENCING BUSINESS IN THE 21ST CENTURY

Verizon Wireless is a company that operates within the telecommunications and technology industry. Regardless of the current economic condition, Verizon Wireless, a joint venture of Verizon Communication and Vodafone, has had a continued rise in subscribers since 2001. Some of the macroeconomic variables that may affect the industry as a whole are unemployment/employment, personal disposable income, inflation and the stock market. Each of these variables has an influence in the future of the telecommunications industry.

Verizon Wireless, just like its competition, is constantly changing. They are adapting to the new technologies that develop and the demands of their customers as soon as they can. Although the unemployment rate has fluctuated between 6% and 4.5% from 2003 to 2007 (U.S. Department of Labor, n.d.) there were periods that were higher but did not influence the rise in subscribers to Verizon Wireless. In the below graph, it illustrates how Verizon Wireless still had an increase in subscribers although there were times when unemployment reached a high of 6 %.

According to the graph, from 2001 to 2007 the number of people who subscribed to Verizon Wireless increased from 29.4 million in 2001 to 65.7 million in 2007. During this time the unemployment rate reached a peak of 6 % and a low of 4.6% which did not hinder Verizon Wireless from attaining new subscribers.

Disposable income “is personal income less personal taxes,” (McConnell & Brue, 2006, p.121) which people can use as they choose by either spending or saving. The Economist Intelligence Unit Limited (2009) Web site has personal disposable income rising in conjunction with the median income going up according to the U.S. Census Bureau. The graph below shows the average disposable income and average income rising over the same period as subscribers and unemployment rates. While incomes are increasing people are choosing to limit their bills by switching from wired phone lines and wireless to wireless only.

“The mega-trends in telecommunications - the shifts from analog to digital technology, from wired to wireless platforms, and from narrowband to broadband services – have fundamentally changed the way people communicate.” (Verizon Communications, 2008). A change in how many people have wireless only service has helped Verizon Wireless increase their subscribers. By the end of 2008 one in five American households may well not have a home phone line according to a The Nielsen Company (2008). “At the end of 2007, 16.3 percent of U.S. households had abandoned their landline phone for their wireless phone, but by the end of June 2008, just 6 months later, that number had increased to 17.1 percent,” (The Nielsen Company, 2008).

Although incomes have been rising, consumers are going wireless only. In the graph below it compares households that have both landline and wireless, only landline and only wireless. The trend to go wireless has been growing at a very fast pace. It jumped from 3.2% to 13.6% in five years and is projected to jump to 20% by 2012 according to Verizon Communications (2008).

The telecommunications industry has many opportunities to expand their business as technology changes everyday. By developing new ways to connect to people, the challenges of marketing to customers and keeping them have also evolved. Verizon Wireless has used to its advantage that “49% of Americans are starting to see cell phones as a necessity,” (Morin & Taylor, 2009). Many of the plans offered include long-distance so there is a cutback in costs to keep in contact with friends and family out of the local area. Another attraction Verizon Wireless offers are the new phones that come out constantly and with those come contracts. This will continuously create profits for the determined amount of time plus the cost of the new phones.

Research costs into new phones, software, marketing and customer service can initially be high but projected sales, demand for carrier specific items and keeping loyal customers more than makes up for the initial cost. All these challenges help stimulate the economy by training people, increasing sales there fore increasing profit that can be redistributed.

Competition is a challenge that all wireless companies face. In 2003, under a program called Local Number Portability, wireless customers were able to change carriers and keep their existing wireless phone numbers. Verizon Wireless has faced this battled by providing one of the most reliable networks in the United States and by providing broadband network capabilities. All these new services and maintenance to the network needs to be supported by employing more workers which helps reduce the unemployment rate. Verizon Wireless can contribute to the economy by employing people and by providing consumers what they want at a reasonable price.

Although the unemployment rate has varied, Verizon Wireless customers have increased at a steady rate. Part of this could be the increase in disposable income or the move to go from a wired-line to a wireless line. Many macroeconomic variables like unemployment, disposable income, inflation and stock market have an affect on the telecommunication industry. Competition and technology are some of the challenges faced by Verizon Wireless. There are several ways for them to combat this by providing a superior product, many options and a reliable network. The more the company needs to rise to the challenge of competition, the more employees will be needed to meet this challenge.

References

DeNavas-Walt, C., Proctor, B.D. & Smith, J.C. (2008). Income, Poverty, and Health Insurance Coverage in the United States: 2007. US Census Bureau. Retrieved July 31, 2009, from http://www.census.gov/prod/2008pubs/p60-235.pdf

The Economist Intelligence Unit Limited. (2009). Data Tool. Retrieved August 2, 2009, from http://data.eiu.com/EIUTableView.aspx/personal_disposable_income

McConnell, C.R. & Brue, S.L. (2005). Economics. Principles, problems, and policies (16^th Ed). New York: The McGraw-Hill Companies.

Morin, R. (2009). Luxury or Necessity? The Public Makes a U-Turn. Pew Research Center. Retrieved August 1, 2009, from http://pewsocialtrends.org/pubs/733/luxury-necessity-recession-era-reevaluations

The Nielsen Company. (2008). Call My Cell: Wireless substitution in the United States. Retrieved August 2, 2009, from http://www.nielsenmobile.com/documents/WirelessSubstitution.pdf

United States Department of Labor. (n.d.). Household Data Annual Averages. Retrieved August 1, 2009, from ftp://ftp.bls.gov/pub/special.requests/lf/aat1.txt

Verizon Communications. (2008). . Retrieved August 1, 2009, from http://investor.verizon.com/profile/industry/.

Wong, Wailin. (2008). USA telecoms: Cellphones to ring up sales even in time of recession. ViewsWire. Retrieved August 1, 2009, from http://viewswire.eiu.com/article1483133133.html?pubtypeId=1162462501&text=cell%20phones