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Gap Analysis: Global Communications

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Gap Analysis: Global Communications

Sharon D.J. Gibbs

University of Phoenix

Gap Analysis: Global Communications

Telecommunications companies are under tremendous pressure to compete with the masses and maintain profitability. Confidence in the telecommunication industry on Wall Street is waning. Shareholders have lost confidence in diminishing returns and question the industry's ability to rebound. Global Communication has definitely had their share of dissipating returns. In the past three years, the company has watched stocks trade from a high of $28 per share to an alarming $11 per share, which is more than a 50% depreciation.

The problem with the telecommunication industry is that there is too much competition among local, long-distance, and international markets. They all are competing for the same business, but with different services and options. Cable companies have taken the lead by offering complete solutions that encompass computers, televisions, and plain old telephone service (POT). In addition, the impact of entering into the international market has yield mixed results in the industry.

Global Communication senior leadership team has developed a two-pronged aggressive approach to become more competitive with local telephone and cable company. First, the company plans to focus their new strategy on small business and consumer customers. The plan will increase the company's growth by offering new services in both the local and long-distance market across country. To facilitate this growth, Global will create alliances with a satellite provider to offer video and broadband services. Global will also partnership with a wireless provider to offer small business owners with internet access using wireless telephone or PC cards. Second, the team has identified cost-cutting measures that will improve profitability. The team plans to market Global on an international level with the goal of becoming a global resource with this aggressive approach.

Situation Analysis

Issue and Opportunity Identification

Global Communication and other telecommunication companies are under tremendous pressure due to the abundance of competition amongst local, long-distance, and international markets. In fact, Global stocks have dropped an alarming 50% over the past three years. In order to be competitive, Global has to update their current hardware and services to meet the demands of the market. If not, cable companies will continue to saturate the market by offering complete solutions that encompass computers, televisions, and plain old telephone service (POT). Global's primary focus in the local market has caused major financial pressures for the company to the point where the company's revenue and profits are impacted. In order to become more efficient, Global will have to downsize their domestic centers, lay-off employees, relocated employees, and reduce some employees' pay. In addition, Global faces the challenge of winning the Union's approval of their new strategy of globalization and outsourcing.

Global senior leadership has an opportunity to establish new goals and values that will help the company cut cost and improve profits. The leadership has to focus on a niche, "...that caters to a smaller segment of a large market with common needs..." (Turner, 2006), to make Global more aggressive in both the local and international markets. Global can achieve this by benchmarking their products/services with that of the current market. Global also has an opportunity to expand their services to include video services, broadband services, and wireless internet, which will make them competitive with local telephone and cable companies. Establishing cross-cultural relationship with India and Ireland will give Global an opportunity to reduce unit cost of handling calls by nearly 40%. Global will have to lay-off and relocate employees in order to support their new strategy. Through this experience, Global will have the opportunity to ensure that all employees are treated fairly through the transition. The company can team up with a career counseling company to assist employees who are laid-off and offer incentives for those relocating. Finally, Global will have to meet with Union representatives to re-negotiate current teams under the new globalization and outsourcing plan.

Stakeholder Perspectives/Ethical Dilemmas

Global Communications has several stakeholders that have different interests in the company. The stakeholders are very instrumental to the organization because without their support the company's viability is seriously threatened. One of the primary stakeholders is the shareholders. Shareholder's interests are served by the management efficiency to achieve profits. Other stakeholders include: Employees whose interest are work satisfaction, pay, and benefits; Global Senior Leadership whose social responsibility is to ensure the company's new strategy does not conflict with the company's vision, deteriorate outside relationships, and that employees are treated with respect; Customers whose primary concern is quality, safety, and availability of goods and services; Communities whose concerns are the environment and quality of life surrounding their communities; and finally, Union Leadership whose responsibility is the best interest of the union members and the union itself.

Global Communications faces two major ethical dilemmas that must be addressed. First, the company has to be honest with employees about the new strategy and the impact it has on their job security. Failing to do so can affect the morale across the entire company. Second, Global has to work on their Union-Company relationship. The company has to decide if fighting the Union is worth the hassle or engaging into re-negotiation under the new strategy will better benefit the company as well as the stakeholders.

End-State Vision

Global Communications End-State Vision is to become a global corporation within three years operating in local and international markets



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