Global Communications Gap Analysis

Problem Solution: Global Communications

Discussions of globalization and increasing competition within the telecommunications industry, Global Communications is suffering at the hands of economic pressure. During the past three years their stock has decreased more that 50% and stockholders are not pleased with Global Communications current market position.

Recently Global Communications has decided to outsource their call centers overseas, which will result in maximum layoffs and potential legal battles with the union. This analysis will look at Global Communications current situation, stakeholder perspectives, and their issues and opportunities. The conclusion will analyze end state goals and future vision of Global Communications.

Situation Analysis

Issue and Opportunity Identification

Global Communications has felt the pressures of economic decline due to competition in the telecommunications industry. “During the early nineties, forecasters predicted that the telecommunications industry would grow rapidly with the expansion of internet use,” (Litan & Noll, 2004). In 1996 a telecommunications act was passed to end monopolies in the local market but it provided opportunities so already established firms could join the long distance market. Global Communications stock traded at $28 per share three years ago, now the stock is valued at $ 11 per share. Stockholders are disappointed with diminishing returns and are uncertain of Global Communications ability to recover. The leadership team has taken an aggressive approach, by developing plans to restructure Global’s current financial status. The leadership team plans to attain growth will the induction of new products that will be made available to small businesses and consumers; using both local and long distance markets. The teams have looked into cost cutting measures to improve probability and created alliances with a satellite provider.

Global Communications’ leadership team failed to communicate with all stakeholders that would be impacted by the decision to outsource call centers. Global Communications used distributive negotiation tactics that, “usually involves a single issue-a “fixed pie”- in which one person gains at the expense of the other”, (Kreitner & Kinicki, 2004). This form of communication portrays Global as taking an aggressive style approach versus an assertive approach. “Managers can improve their competence level of communication by being more assertive and less aggressive,” (Kreitner & Kinicki, 2004). Global Communications should have tried to avoid conflict between union and employees by candidly discussing development plans. Now that dysfunctional conflict exists between management and employees, this will hinder organizational performance and decreases employees’ lack of trust in management.

Global Communications’ negotiation tactics were unsuccessfully communicated and did not offer a win-win strategy. The leadership team has the opportunity to develop restore relationship with union and employees using integrative negotiations. “Integrative negotiation calls for a progressive win-win strategy,” (Kreitner & Kinicki, 2004) which Global Communications needs to resolve issues with union. Having the acquired negotiations skills along with effective communication, Global will be better equipped with essentials needed for setting goals and limits for applying logic.

Stakeholder Perspectives/Ethical Dilemmas

The Key stakeholders involved in the Global Communications scenario are the following: shareholders, management, union, employees and consumers. Everyone in this group has a vested interest in the success of the company. Shareholders have a vested interest due to their ownership in the company. Shareholders value increasing revenues and profits annually and expect Global Communications to communicate formally and keep them informed of developments. Global Communications has a social responsibility to operate with integrity and keep shareholders abreast of actions that will have an adverse effect on the future of the company.

Global Communications management team has a responsibility to incorporate company values and ensure profitability. Management is expected to provide a hostile free work environment, which will attract and attain highly skilled workers. Managers expect to be compensated well and given the opportunity to make decisions freely in the interest of the company.

The union has an interest in assuring that all workers are treated fairly and negotiate wages and benefits. Unions are refereed to as collective barging organization with rights that include representing workers and negotiate collective agreements. Unions value open and honest communication.