Gap Analysis: Global Communications

Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS

Gap Analysis: Global Communications

University of Phoenix

Foundations of Problem-Based Learning

MBA 500

July 24, 2007

Gap Analysis: Global Communications

Global Communications (GC) is faced with a situation common to many industries today, increased competition and dwindling profits. GC’s stock value has fallen over 50% over the past few years. Decisions need to be made and consequences considered.

Situation Analysis

Issue and Opportunity Identification

GC has experienced an increase in competition, an increase in consumer demand, and a drop in stock value of more than 50%.

Opportunities that exist for consideration include outsourcing to foreign countries, layoffs of current employees, a change in the working relationship with the union, and the possibility of telecommuting.

Outsourcing has the advantage of a lower cost per employee. Typically the outsourced employees receive lower wages and are less likely to receive health benefits. There are security risks which must be considered. Among these risks would be the loss and/or misuse of confidential, personal information, and the theft of company processes.

Layoffs of current employees would lower the company’s current employee costs, but could have a deleterious effect on employee morale. Studies have shown that employee involvement in decision making contributes to employee morale and the remaining employees would have had this option taken away from them, (Dube, Arindrajit, Ph.D., The University of Chicago. 2003.) This could be countered by emphasizing the possibility of travel, movement to another division, and exposure to another culture. The form of communication to the employees would need to be considered to ensure accurate understanding of the message, (McShane & Glinow, 2005).

Another option that could be considered for the current employees would be telecommuting. Telecommuting would result in the lowering of cost per employee and allowing the employee more flexibility in his or her scheduling of work, (Kinicki & Kreitner, 2003). This option is particularly attractive in today’s economy. The option of working from home offers benefits ranging from lower childcare costs to lower automotive maintenance.

The union could provide more employee input and a more active role for employees in management decision making. This can improve communication between management and employees thus avoiding the communication mishap which occurred at GC. The union could become an active advocate for the employees and make suggestions that may result in the retention of jobs. They can cite studies which may dispute some of the benefits of outsourcing, (Buttleman, KR).

Stakeholder Perspectives

Stakeholders with an interest in the Global Communications (GC) scenario include the stockholders, senior management, current employees, the community and the consumers. The stockholders have an interest in the value of the stock. They will want this value to rise, increasing their investment. The senior management has an interest in regaining their standing in the industry, raising the value of the stock, gaining their desired global status and retaining their positive image in the community. The current employees have an interest in job security and better communication with their senior management. The community has an interest in maintaining their employment and tax base. Finally the consumer has an interest in obtaining the best product or service for the best possible price.

Gap Analysis

A gap exists between the interests of the stakeholders and the end-state goals. Each of these interests is valid and fair. However, when senior management weighs their options they must consider the competing values. Senior management must consider the financial future of the company from the stockholders’ view, they must consider the employee’s concerns about job security, the community’s concern about the financial impact the community would experience if there was a layoff and the consumer’s perception of the value they receive for their dollar and their perception of ethics of the company. If the company fails, the employees will not have jobs, yet if the employees choose to leave, the company will falter because of perceived unfair treatment. If the company decides to lessen the employment and tax base, the