Gap Analysis: Global Communcations

Global Communications is a telecommunications company that is currently going through a financial crisis. Stockholders are on edge because stock values during the last three years have fallen to $11 per share from a profitable $28 per share. The Board of Directors is expecting the Senior Staff Team to come up with solutions as soon as possible. Therefore, desperate measures need to be implemented as soon as possible to decrease expenses and increase revenues and profits.

The Senior Staff and the Senior Leadership teams had a meeting, which resulted in the Senior Leadership team developing an aggressive two-step approach to target local and long distance services to small businesses and consumer customers and finding ways to cut expenses and increase revenues and profits. The first step was to form alliances with satellite and wireless providers to offer video services, satellite, and Internet access to existing and new customers. The second step was to be more aggressive in marketing its' services both nationally and internationally.

The President spoke with the Chief Executive Officer, Katrina, after a meeting with the Board of Directors and she sent an email to the Senior Leadership team to let them know, according to the University of Phoenix Week Four Scenario (2007), "The Board has approved our plan! I just spoke with the President, who said the Board completely agrees that we need to enter and compete in local markets AND step up our globalization. They loved the idea of moving some of our technical call centers to India and Ireland (remember, our business case showed that in setting up new centers, we have the opportunity to reduce unit costs for handling calls by nearly 40%) and thought it clearly supported our strategy to transform into a global corporation within three years."