Gap Analysis: Global Communications

Gap Analysis: Global Communications

Introduction

With the onslaught of competition in the telecommunications industry, Global Communications has come under tremendous economic pressure. Over a three-year period, stockholders have seen their investments decline more than 50% and are now questioning the ability of the company to rebound. Global Communications publicly announced that it will outsource thousands of its technical support jobs overseas and a layoff is expected. Citing contract manipulation, the Union has spoken out against the strategy stating that Global Communications failed to look at the Union as a partner and all other options should have been evaluated prior to the decision to send union jobs overseas. The Union is threatening legal action. This analysis examines Global Communications' current situation, issues and opportunities, and the stakeholders’ perspective. This analysis concludes with the considerations of the desired end-state vision, the current situation, and the course concepts.

Situation Analysis

Issue and Opportunity Identification

Increased competition in the telecommunications industry and a significant 50% depreciation in stock value have jeopardized shareholder value, decreased confidence in the industry, and placed Global Communications under extreme economic pressure. The industry suffered a tremendous loss in market share when cable companies began offering complete solutions to its customers providing voice, data, and video services. The decision to implement off-shore outsourcing places Global Communications in a position to expand and grow its market share by turning its goal of becoming a highly profitable global source of telecommunication services into a reality.

Stakeholder Perspectives/Ethical Dilemmas

The various stakeholders involved in the Global Communications scenario include shareholders, senior management, employees, union, and customers. Shareholders have a vested interest in seeing the company become more profitable and yield a good return to the hard earned investment dollars. Shareholders expect the managing directors and board members to act with due diligence to grow the company and increase returns. Shareholder values focus on investments and the success or failure of those investments. Shareholder values could differ from with the company directors and impede the company’s future direction.

The executive managers of Global Communications have a variety of interests in the company’s success. First, many managers receive excellent compensation for effective corporate success. Second, managers derive a series of esteem needs from undertaking the complicated tasks of overseeing a large corporation and being successful. The right of the managers to make decisions without undue influence is paramount. Managers value autonym, independence and flexibility to manage the company and pursue success.

Global Communications workforce has a vested interest in a successful corporation to provide each employee with a means to earn a wage, support his or her families and provide employment security. Global Communications workforce have rights to be lawfully treated, receive just compensation and the opportunity to pursue promotions. The values that each employee subscribes to with respects to Global Communications may vary from the desire to perform well, support the organization or of a personal nature.

Global-Union, a collective bargaining organization associated with the corporation workforce, has an interest in equitable treatment, expansion and success of the membership. Global-Union desires to have open and honest communications with the executives of the corporation in order to have the company and its membership flourish. The rights that Global-Union are entitled to pertain to the collective bargaining contracts that have been negotiated in good faith with the corporation. Global-Union has expectations of being treated as an equal partner in the future of Global Communications.

Finally, the customer has significant interest and impact on the success of Global Communications. Customers possess the buying power and determine what products or services will be purchased from the corporation. Customers have the right to excellent services, high quality products and dependable customer service. Customer values are not dependent on an organizations internal issue. Customers seek out the best value for their money.

End-State Vision

Utilizing off-shore outsourcing facilities in India and Ireland, Global Communications has successfully reduced unit costs and improved profitability. Global Communications has moved forward with their new strategy of globalization