Gap Analysis: Global Communications

GAP ANALYSIS: GLOBAL COMMUNICATIONS

Gap Analysis: Global Communications

Marie Mosley

Aurora University

March 13, 2007

Gap Analysis: Global Communications

The purpose of this analysis is to assess the current situation at Global Communications (GC), review the issues or opportunities, problems, ethical dilemmas, and formulate end-state goals. GC has experienced more than 50% depreciation in its stock (down from $28 to $11). The company has concluded that their problem is increased competition in local, long distance and international markets as well as diversified cable companies. Ironically, competition is the American way, they has to identify their niche and distinct competencies. Benchmark companies such as AT & T, Continental Communications Inc., Verizon Communications, and other have managed to creativity over come industry adversity while remaining profitable.

GC goals and objectives are to effectively compete in the evolving telecommunication industry; improve earning per share (EAP), meet customer demands, and increase profits and revenues. To that end, the senior leadership team developed a strategic plan to introduce new services to its small business and consumer customers and identified cost-cutting measures. The plan will increase revenues and profit through an aggressive globalization initiative, which outsource and downsize domestic call centers and create centers in India and Ireland. GC’s strategies must evolve into a win-win situation for its stakeholders-stockholders, the board of directors, management, employees, Technologies Workers Union (TWU), small businesses and consumer customers.

Situation Analysis

Issue and Opportunity Identification

Global Communications wants to increase revenues, and profits, through more aggressive globalization. Management’s strategic plan addresses the desires of the Board of Directors to more effectively compete in local markets and expand into the global; however, the plan has limited solutions and major implications. The exclusion of TWU from negotiations coupled with ineffective communications has resulted in a reduction force (RIF) that can lead to greater organizational conflicts. With the board’s approval, the senior team plans too cut cost by outsourcing, downsizing the domestic call centers, and relocating employees (to India and Ireland) at a lower salary.

Effective communication between management, employees, and union is necessary to resolve the internal differences. A business manner of this magnitude warrants a more personal approach such as face-to-face communication, rather than email. Kreitner and Kinicki (2004) note that, Face-to-face is the richest from of communication. It provides immediate feedback and allows for observation of multiple language cues such as body language and tone of voice. The opportunity exists to address immediate concerns and issues that threaten the organization’s financial stability and structure.

It is questionable, whether the strategic plan, in current form; outline all GC’s future problems and solutions; fortunately, there is an opportunity for management to reevaluating the decision-making process, whereby, seek out other alternatives to increasing both revenue and profits without outsourcing or downsizing their domestic call centers. Although, the senior team has developed a plan, they should reevaluate the implications of their decision. Bateman and Snell (2004) state, decision makers should (1) identify and diagnose the problem, (2) generate alternative solutions, (3) evaluate alternatives, (4) make the choice, (5) implement the decision, and (6) evaluate the decision. (Bateman & Snell)

Stakeholder Perspectives/Ethical Dilemmas

All stakeholders have a stake in wanting Global Communications to be profitable. Increased revenues and profits can lead to growth opportunities for the entire organization and all its stakeholders. The stakeholders gain by: employee having greater job security and benefits, TWU gaining leverage to negotiate; stockholders earning per share increases; management achieving their operational goals and objectives; Board of Director realizing profitable margins and market expansion; and both small business and consumer customers receiving quality products and services.

The stakeholder interests appear self-serving; however, they are