Gap Analysis: Global Communications

Gap Analysis: Global Communications

Global Communications (GC) used to be a leader in the telecommunication industry. However, GCs success has followed the trend of the industry and it is currently trying to regain its foothold. To do this GC first has hired some successful managers proven in bringing results in the market that GC is looking for. These new leaders have joined the group of experienced managers to develop a strategic plan of attack that they believe will help propel GC back into the forefront of the telecommunications industry. However, due to some communication and decision making issues on behalf of GC they are now facing opposition to there future and possible success as an organization.

Situation Analysis

Issue and Opportunity Identification

Global Communications (GC) is a large telecommunications company based in the US. Over the past three years the telecommunication industry in general has faced some tough times. GC itself had its stock diminish from $28 per share to $11 per share in that time. This decline was in large part because there are just too many competitors fighting for the same local and long distance customers. When the cable companies then stepped in to offer a single package that would handle all a customers computer, television and phone plane needs it was like a knockout punch to the already faltering industry. In a recent negotiation GC convinced the Union to accept a 20% reduction in the employee’s health and education benefits due to how significant the financial pressures have been. However, with the addition of two new members to the senior management team GC has developed a plan to fight back.

The first step in the plan is to beef up the services they offer in order to be more competitive with the cable companies. To do this GC has teamed up with a satellite company and a wireless company which will enable them to offer video and satellite broadband services, along with giving customers the option having wireless internet through telephone or PC cards. This package is tailored to realize growth primarily in the small business and consumer markets. GC is also hoping to market itself more aggressively in the international markets with the goal of becoming a global corporation within 3 years. The second step in GC’s plan is to initiate some cost cutting measures that should improve the overall profitability of the company. One of the major cost cutting measures that the senior management team has identified is the possibility of outsourcing the technical support for the small business market to India and Ireland. This not only has the possibility of reducing the unit costs for handling calls by over 40% but also will provide an increased technical sophistication that the small business customers are looking for. This move would then entail shutting down many of the current stateside call centers. Some of the employees from those centers will be moved to the expanding consumer call centers and the rest will be let go. Those that do get moved to the consumer call centers will most likely have to take a 10% pay cut since the budget for those centers is very tight. As this strategy has some potentially negative side effects to some of the employee’s at the company it was kept private until after it was approved by the board.

Stakeholder Perspectives/Ethical Dilemmas

The two primary stakeholders in this scenario are the GC senior management team and the Union. In this scenario the management team has the future of the company in their mindset. They believe that without some significant changes the company will not survive. They have outlined a strategic plan that they feel is necessary for keeping the company in business. This strategy includes outsourcing a substantial number of jobs overseas. This is a pivotal part of their strategic plan and according to the Harvard Business review is an integral part of how companies achieve success in the world today (Call Centers Managers Forum, 2008).

The Union also is interested in GC’s success as their member’s interest’s lie in the company surviving. However, the Union reasons that they have done their part in helping GC by reducing their benefits plan. They have two major problems with the new strategy of GC’s. The first is that they feel GC is manipulating the previous contract that was established and acting unethically. The second is they believe this could set a trend in the telecommunication industry which would directly oppose their interest of maintaining jobs for their employees.

An emotional conflict also exists between the Union and the management team. The Union liaison looked bad in front of her peers since she was not informed of the plan before they found out through the grapevine. Although her and the GC human