Gap Analysis: Global Communication

Running head: GAP Analysis: Global Communications

Gap Analysis: Global Communications

Deon Stencill

Kia Bautista

Steven Tam

University of Phoenix

Gap Analysis: Global Communications

Communication has been one of the most important aspects in decision making in any businesses. Decision making is one of the most important responsibilities for a manager. Without communication, a good decision cannot be made. In management, it is very imperative that there is good communication. In a matter of speaking, "management is communication" (Kreitner-Kinicki, 2003, pg 520). Communication is "defined as the exchange of information between a sender and a receiver, and the inference (perception) of meaning between the individuals involved" Kreitner-Kinicki, 2003, pg 520). In the company called Global Communications, or GC, there is a communication problem between the company, along with the senior management team, and the Technologies Worker Union. Global Communications also have a financial problem in competing with other telecommunications companies in the industry.

In a brief overview, Global Communications confidence in the telecommunication industry is falling. With the decline in returns, the stockholders are loosing confidence in the company as well. The stockholders speculate that the company may not have the ability to rebound from the downturn. Currently, the company stock is trading at $11 per share, while the stock was trading at $28 per share 3 years ago. The problem seems to be too much competition, where local, long-distance, and international communication markets are competing against each other. There are new calling features that are being offered by local and long-distance companies, however the cable companies is blowing away the telecommunication industry with providing computers, televisions, and telephone services.

In order for Global Communications to compete more efficiently and successfully in the industry, the senior management team developed 2 aggressive possible solutions. The 1st solution is introducing new services which gear towards its small business and consumer customers. Another part of this solution is creating partnerships with a "satellite provider to offer video services as well as satellite version of broadband" (MBA500 Scenario: Global Communication). The second solution is using cost-cutting measures to increase profit. To achieve this, the company decides outsource to India and Ireland, by moving the technical call centers to these countries. By outsourcing, the company can decrease cost by nearly 40 percent.

As the senior management team announced their plans to the Technologies Worker union, Global Communications' strategy was strongly opposed. To the senior management team, they consider the strategy to be efficient and logical. The team sees that the company's new strategy can not only increase profitability, it can also benefit small business owners, expand consumer call centers, and cut a significant cost for the company. By implementing the new cost cutting strategy, however, the relocated employees will suffer from a 10 percent salary cut. With this new strategy, there will be a significant amount of layoffs. The Technologies Worker union is extremely not pleased with the company's new plan. The union tried to persuade the company to find another way to compromise and develop a win-win situation for both parties.

The perceptual model of communication is a communication process where the receiver creates a meaning of what is heard in his or her mind. The management team of Global Communications sees their cost-cutting strategy is a sound proposition. The management team considers their plan is the only way for the company to rebound and become profitable. They also believe that their plan is beneficial for their employees in the long run as well. The senior management team strongly believes that despite of the salary cuts, there are jobs available at the consumer department and they can offer "a 15 percent retention bonus" (MBA 500 Scenario: Global Communication). On the other hand, the union believes that the company's strategy is against the company's "highly publicized Our Edge is People philosophy" (MBA 500 Scenario: Global Communication). In the union's view, Global Communications' plan is set for a win-lose situation for the company's employees. The union interprets Global Communications as a situation where there is no room for negotiation.

In conclusion, Global Communications emphasizes more on cost-cutting measure to improve its profits, despite knowing that the plan will hurt its employees. The company disregards its local and domestic employees while the company plans to