Gap Analysis: Global Communications - Issue and Opportunity Identification

Gap Analysis: Global Communications

In just three years, the telecommunications industry has taken a tremendous dive. Stock value has dropped by more than 50%, leaving stockholders very little hope for rebounding. The problem arose as local, long-distance, and international markets began competing for the same business and cable companies began providing complete solutions to customers, including computer, television, and telephone packages. Although the telecommunications saw little improvement with the introduction of new calling features and services, they have been taken over by the cable companies. Global Communications shares the same bleak outlook as others in the industry. A plan must be implemented to save the company from going under.

Performing a GAP Analysis is helpful in identifying the problem and possible solutions. A GAP Analysis will help Global Communications to understand their current place in the industry and where they would like to be. Once the two positions are identified, Global Communications can use the information to create a plan for closing the gap, bringing Global Communications out of the tailspin of failure to new levels of success.

Situation Analysis

Issue and Opportunity Identification

Global Communications is faced with three major issues in need of resolution. If these issues are approached correctly, they may be viewed as opportunities for improvement or change that could benefit the company in the long run. The three major issues to be addressed include 1) Rapidly changing communication tools, particularly technology, 2) Loss of competitive edge in the communication industry, and 3) Keeping employees happy despite the negative effect the companies strategies will have on them.

The first major issue Global Communications faces is the advancement of technology, which has allowed the cable industry to take over business from the telecommunications industries. Cable companies have developed attractive and convenient packages for their consumers. Before technology evolved, consumers purchased television, telephone, and Internet services separately. However, cable companies began offering all three services together as a package, benefiting both the consumer and the cable companies. Under the package deal, cable companies are able to offer consumers lower prices as they gain additional business and increase their profits.

The next issue Global Communications faces is a loss of business nationally and internationally, resulting in decreased profits. Global Communications must seek an opportunity to regain business both nationally and globally, which means offering services that are equally or more attractive to consumers than the cable companies’ packages. The leaders at Global Communications must find a way to lower costs in order to save the company in the future. However, the strategy leads to the third issue, which involves the employees. If employees begin hearing and spreading rumors at Global Communications, it could easily destroy employee morale. Unhappy employees result in lower productivity and higher turnover. Global communications takes pride in being good to its employees, and upsetting them could damage the company’s positive reputation. Global Communications must identify an opportunity to salvage the company’s reputation even if the solution produces a negative outcome for the employees. However, the optimal scenario is to improve the company and achieve goals without negatively affecting employees.

Stakeholder Perspectives/Ethical Dilemmas

Stakeholders in the Global Communications scenario may not all be focused on the same issues and outcomes, which results in conflicts that can get act as obstacles in working out a solution to the problems and issues. Stakeholders can benefit from identifying differing perspectives, interests, and ethics involved. Six main stakeholder groups in the Global Communications scenario include: Katrina Heinz, Sy Rodriguez, Nancy Everhardt, Joel Thompson, Maria Antez, stockholders, and employees. Katrina Heinz, the Chief Executive Officer at Global Communications, is focused on increasing revenue and profits by implementing aggressive strategies. Because Katrina has only been with the company for about six months, she may not be as focused on the stakeholders and employees’ interests, and this could result in an ethical dilemma if others oppose her ideas. Sy Rodriguez, the Executive Vice President of Consumer Marketing and Sales, has been with the company for 20 years. Because of his longevity, it may be safe to say that Sy has a more personal interest in the key stakeholders of the business. Sy focuses on establishing relationships and getting results. Nancy Everhardt, Executive Vice President of Small Business and