Gap Analysis: Global Communication

Gap Analysis: Global Communication

Andrew Haskins

University of Phoenix

MBA/500-Foundation of Problem-Based Learning

July 19, 2007

Gap Analysis: Global Communication

The year is 2004 and Global Communications is recognized as the leader in the telecommunications industry with services priced below their competitors and their stock trading at $28 per share. Now fast forward three years to 2007 and Global Communications has fallen victim to modern day progress by not keeping up with technology, lack of globalization and operational expenses at an all time high. Their shareholders are dissatisfied with the 50% deprecation of their stocks and speculate if the company has the able to rebound and become a viable player in the telecommunications industry once again.

With such dismal results Global Communications senior leadership devises a strategic plan that is quickly approved by the President and Board of Directors. The strategic plan requires they company to cut call center cost by 40%, outsourcing overseas, increase products offered, partner with satellite companies and expand globally. Senior Leadership fails to consult or communicate this plan to the Technologies Workers Union. When the Technologies Workers Union gets wind of their plans, Global Communications is faced with potential legal action and negative publicity.

Situation Analysis

Issue and Opportunity Identification

Global Communications is a company at the cross roads of change. They are faced with a shift in technological advancements and competition from not only other telecommunications companies but also the cable companies have now entered the market and are able to provide a complete telecommunications solution packages. Three years ago, Global Communications stock traded at $28 per share but in today’s market they are only valued at $11 per share. The shareholders are dissatisfied with the 50% deprecation of their stocks and are speculating that the company may not be able to rebound and become a viable player in the telecommunications industry. The senior leadership team of Global Communication is under pressure to improve results so they develop an aggressive approach that would allow the company to expand globally, introduce new technology, create alliances with satellite providers and decrease their unit costs for handling calls by 40%. The company recognizes some “discrepancy between current state (the way things are) and a desired state (the way things ought to be).” (Bateman and Snell, 2004. p.9).

In order to achieve those results, Global Communications will need to move call centers overseas, eliminate and or shift positions to their expanding customer call centers and reduce salaries for those employees who remain. The plan is presented and quickly approved by the President and Board of Directors. The senior leadership team starts to work on a transition plan and realizes they have not informed the Technologies Workers Union which represents their employees. “People who have different stakes and perspectives in a decision related to the expenditure of scarce resources should have a voice in the decision process. In most cases, involving them in the process and working through the differences makes it more likely that they will be committed to the decision outcome, even if it is not the one they favor.” (Gomez-Mejia and Balkin, 2002, p. 6-7). Failure to communicate or involve the Union in the strategic plan has now placed Global Communications at risk for morale problems, decreased productivity and a non-collaborative relationship with the Union. Global Communications must overcome this critical issue in order to achieve the goals of global expansion and profitability

Stakeholder Perspectives/Ethical Dilemmas

The interests of Global Communications, shareholders, Technologies Workers Union and their employees are all at risk if they do not increase their profitability and gain globalization within the telecommunications industry. Global Communications and their shareholders interests are profitability and globalization while the Union and the employees are interested in job security, compensation and benefits. The lack of common interests between all parties now has the senior leadership team facing a dilemma between