Global Analysis Communication

GAP ANALYSIS: GLOBAL COMMUNICATIONS

Gap Analysis: Global Communications

University of Phoenix

4/14/08

Gap Analysis: Global Communications

In this world where e-mails travel at the speed of light to an individual’s in-box, technology has enhanced the way companies are able to communicate and conduct business. Global Communications is a company that stands at the forefront of the world as a leader in the telecommunications industry. Even a master of electronic communication can be bitten by the hand that feeds it, as is the case with Global Communications. Changing fundamentals within the industry, increased competition from new players, and an archaic business plan and model have pushed Global Communications to a state of emergency. To continue, executives of the company must engineer an aggressive re-organization, which includes outsourcing domestic union jobs to foreign counterparts, re-inventing the company’s public image and re-engaging a volatile workforce. While the changes that Global Communications must implement seem daunting, executives of the company also have the challenge of turning the company’s intrinsic problems to opportunities for growth and expansion. If successful, the dark cloud that hovers over the company is a mere passing storm, with a silver lining: A better, more efficient company that is truly global and poised for new challenges that may arise.

Distinguishing between the problem and issues regarding the problem is critical with the Global Communications scenario. The problem/opportunity is transforming the company into a true global player in the telecommunications industry. An analysis of the historical events that have lead to Global Communication’s state of emergency reveals that the company was structurally incompetent and not organized in a manner to deal with a potential crisis.

Increased competition, price wars, and changing industry fundamentals are standard problems that executives must deal with and successfully manage. The execution and implementation of decisions is what separates good managers from poor managers. The crisis facing Global Communications will force the company to become a world leader in its industry, and also force executives to re-structure the company so that it can deal with potential problems moving forward.

There were several key occurrences that have led to the issues that Global Communications faces. Other companies, who were looking to gain a competitive advantage in the industry merged with other firms and were able to diversify their products and services. The industry transformed. New technology permeated the market and Global Communications was not able to keep up. Price wars and expanding use of foreign labor forces also allowed competitors to offer products and services at a discount to Global Communication’s price structure. Meanwhile, executives of Global Communications focused their efforts on managing day to day operations of the company and ignored important signs that the current state of the business had to evolve.

Internally, Global Communications’ management team had new individuals at the top of the corporate structure who were responsible for making critical decisions as well as more tenured managers who experienced success through the old ways of business that Global Communications conducted. Ultimately, the division between new and old members of the management team was yet another barrier to a smooth transition of the company.

Central at the internal conflict of Global Communications are the executive management team and the union representing the workforce. The management team has determined that it must outsource work in the foreign labor market at the expense of the union which has already made concessions to keep the company afloat. The union has shown its dedication and commitment to Global Communications by previously agreeing to reductions in benefits. The needs of each side have been polarized. Both sides have interests that they must protect. However, there appears to be no middle ground where both sides can be content. Union workers feel betrayed with information of the direction that the company is taking while management has concluded that there is one outcome with a positive ending. Unfortunately, for the union, management’s assessment of the situation and the solution to the problems are outsourcing, reducing costs and forming new alliances to improve products and services. These solutions appear to be accurate. Executives must protect the interests of shareholders of Global Communications