Gap Analysis: Global Communications

Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS

Gap Analysis: Global Communications

Gap Analysis: Global Communications

Global Communications is a telecommunications company struggling to be successful in a competitive marketplace. In this paper, discussed are challenges that Global Communication faces, issues and opportunities, stakeholders perspectives and ethical dilemmas, and a gap analysis of the company. It is important to remain competitive, keep up with new services and technologies, and restructure the company. The Gap Analysis evaluates the ethical dilemmas that have become known in response to the restructuring plan.

Situation Analysis

Issue and Opportunity Identification

Global Communications stockholders are concerned that returns are down and worried that industry will have a difficult time rebounding. Stocks have dropped by more than 50% in the past three years and are valued at only $11 per share now. The increased competition that Global Communications faced has increased vastly over the years and is finding it difficult to keep up with the ever-changing marketplace. Global Communications needs to reorganize the company in order to continue to survive in the telecommunications industry. To do this Global Communications needs to develop new services, find ways of cutting operating costs, and increase profitability.

The senior leadership team developed a two-step assertive approach to revitalize the company. The first was to introduce new services such as video services and satellite versions of broadband. The company also wanted to form a partnership with a wireless provider to provide 24-hour internet access using wireless telephones and PC cards. The second step was for senior leadership teams to indentify cost-cutting measures that would improve profitability of the company. Global Communications plans to market itself aggressively on an international level to become an actual global company.

Since labor costs are a concern for Global Communications, the company plans to move technical call centers to Ireland and India. This will allow Global Communications to reduce costs by 40%. Unfortunately, many employees will lose their jobs or could relocate but with a 10% pay cut. Senior leadership thought it would be best not to announce the board approved the plan until it. However, senior leadership lack of communication that led not discussing the plan with the worker's union and has created strain between Global Communications and the workers' union. Global Communications showed a lack of organizational commitment in their dealing with the union. “Organizational commitment reflects the extent to which an individual identifies with an organization and is committed to its goals.” (Kinicki & Kreitner, 2003, p. 216).

Stakeholder Perspectives/Ethical Dilemmas

Global Communications shareholders are concerned with the depreciation of stock by over 50% in the past three years. The company is experiencing pressures to reorganize and restructure to become successful in the telecommunications industry. Global Communications employees and the workers' union have devoted much into the company. To maintain long-term growth of the company, employees gave up 20% of their health and education benefits. Sacrificing of those benefits is evident that the employees and the union are concerned about company growth and stability of employment. The workers' union does not endorse the outsourcing of jobs as the union has given up much already in way of benefits to assist Global Communications to become a more efficient business.

Global Communications senior leadership need to decide which group of stakeholders has more stakes in the company. Is it important to implement a plan that can resolve the company’s financial struggles quickly while acting in the best interest of the current employees to be sensitive to those who face the possibility of employment ending.

End-State Vision

Once Global Communications implements the restructuring plan to offer new services and cut costs by outsourcing, the company could