Gap Analysis: Global Communications

Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS

Gap Analysis: Global Communications

MBA 500

January 2000

Instructor: MARK

University of Phoenix

Gap Analysis: Global Communications

Global Communications company was facing the same crisis and dilemmas of other telecommunications companies. There were many other telecommunication companies and competition is tight in this field. The company also saw more than a 50 percent decrease in their stocks. It is important that Global Communications take a different approach to help the company so that it can stay competitive in the telecommunication field.

In the past, Global Communications has had a reputation of taken care of their employees, but with the new approaches and directions they will be “going against the grain”. Prior to these directions, they cut health and education benefits 20 percent. Now, employees are will loose their jobs and be laid off while others will take a 10 percent pay cut. Ultimately, Global Communications do not have any choice and they need to act quickly to stop the downward spiral, which could lead the company into bankruptcy.

Situation Analysis

Issue and Opportunity Identification

The competition in the telecommunication field has placed an extreme economic pressure and they have loss financial and customers in the market field when competitors offered compete package bundle solutions to its customers. For example, currently Earthlink, an Internet service provider, now offer Internet and phone. Verizon, telecommunication company, offers even more in their package bundles: telephone, cell phone, Internet, and cable.

Global Communications' decision to outsource call centers overseas resulting in union layoffs will cause a major morale issue and impact productivity. It may also bring forth negative publicity on how they treat their employees. It may be difficulty for people to accept the company’s decision to outsource their call center overseas. The Union has already announced they will seek legal action against Global Communications because they excluded them in the decision-making process. Global Communications is in the position to open discussions with the Union.

However, with the negative reaction of outsourcing to less expensive countries, in the future they are able to look into giving incentives to employees that decide to stay. This will be a positive public relations move to offset the negative reactions of people losing

their jobs due to outsourcing overseas.

Stakeholder Perspectives/Ethical Dilemmas

Several different groups and parties have an interest in Global Communications. It is like a team. Each team member has a different interest and responsibilities.

The managers have the responsibility to make the company solid and profitable so the stockholders will receive the largest return on their investment. Management also has a responsibility to the labor union and its members. This can be touchy and political issue. They have to be sensitive to the Union’s wants and needs. The dilemma for managers at Global Communications is if they outsource the jobs, then many employees will be laid off or have to take a reduction in salary. If they do not transfer positions to Ireland and India, the company may not be able to compete in the industry, which may result in the company’s unable to stay in business.

The Union has a large role in the current situation at Global Communications. They represent the employees who belong to the Union. The union fights the business-restructuring plan; employees’ benefits and medical insurance cost. The major morale issue the Union has with Global Communication is they were kept in the dark concerning the initial decisions to outsource their call center overseas. In previous companies they were part of the decisions affecting employees. For example, in a previous negotiation, they agreed to an education and medical coverage cutback; however, with the latest decision, they feel that they have been taken advantage of by not being included in the current company decisions.

Global Communications will need to reassure their customers that their private information will be kept in strict confidence even though through outsourcing services overseas, they will not have direct control over how the customers’ private information is handled.

The stockholders are the one