Mba 500 - Gap Analysis: Global Communications

Gap Analysis: Global Communications

The Global Communications scenario outlines a communications company in financial trouble. It has lost market share and half of its stock value in the last three years. The company must make severe cost-cutting adjustments to survive. Its employees are represented by the Technologies Workers Union. The company is bound by the clauses in the contract with the Union. Recently, company management decided to outsource the employee jobs at its small business call centers to India and Ireland. They did this without consulting the Union, as was required to do beforehand pursuant to the contract. The Union, as well as the employees, feels like the company is not acting in good faith and may be using this action as a ploy to circumnavigate around the controlling clauses of the contract. These facts set the stage then for the following analysis.

Situation Analysis

Issue and Opportunity Identification

The most pressing issue is senior managements' failure to treat the Union as a partner in any major decision that will have a large impact on employees. Management has failed to recognize and respect the Union as a business partner. There is an opportunity presented for the company management to turn this status around by following the 10-step plan outlined in the subsequent section. It is imperative for the company to win the Union and employee's agreement to the cost-cutting plan in order for it to proceed quickly, as time is of the essence in this situation.

The second pressing issue is how to introduce new services to the companies' customer base to win back customers. The company's leadership has devised a two-pronged aggressive approach as the solution for this problem (Company Overview, 2004).

They propose to introduce new services via a satellite provider to offer video services; and in partnership with a wireless company, to provide small business owners anytime access to the Internet via PC cards or wireless phone. Following that, they plan to engage cost-cutting programs designed to increase the profit line (Company overview, 2004).