Gap Analysis: Global Communication

Gap Analysis: Global Communications

University of Phoenix

MBA 500

Foundations of Problem-Based Learning

Workshop 6

Learning Team - Global Communications Problem Solution Paper and Defense

Abstract

Global Communications is a telecommunication company that is facing many issues. In order to become leaders within the telecommunication industry, Global Communications will need to overcome many issues within the company. Some of the issues that Global Communication is facing are the advancement of technology that they currently lack. The advancement of technology has place a huge strain on the company to where there stock value depreciated to have of the value three years earlier. The increase of competition has also provided better services and prices to those customers looking advancement in technology at a great deal. Global Communications will also have to outsource their services in order to stay ahead or complete with other telecommunication competitors. The solutions are many, the implementation can be possible but the strategy has to be perfected. Global Communications need to accurately assess their position with the company and the industry. They will need to anticipate future market threats and trends to stay ahead of the competition. Global Communications will need to align themselves to take advantage of opportunities for growth. Global Communications will need to analyze their competition and devise a plan to neutralize it. If all of these strategy can be implemented, Global Communications has a chance to not only service in the industry, but also become leaders.

Gap Analysis: Global Communications

Three years ago, Global Communications stock was trading at $28 per share. Three years later, the company stock value depreciated to half of its price, trading at $11 per share. After losing market share as well as profitability, Global Communications has embarked on an aggressive business course without taking into consideration how the consequences of their actions might affect a majority of their long time employees. "Wide discussions of how to gain long-range job security for a unionized work force, while concurrently gaining long-range corporate cost-cutting goals, seem to be marring Global Communications business model" (Automotive News, September 09, 1996).

It was obvious to the executives at Global Communications that the company was heading into economical trouble if immediate actions were not taken. In order to remain competitive, Global Communications come up with some strategies along with changes that would make them leaders in the market place. Along with these new implementations, Global Communication will have to face many challenges. These challenges include implementing strategies to bring the company to a competing level among other telecommunication companies, to having to deal with the Union that opposes the company's strategy to outsource the technical call centers to India and Ireland while having to lay off many employees to make the outsourcing possible. Global Communications will also have to deal with massive layoffs that will cause mistrust among the employees who remain within the company, possibly affecting productivity.

In order to assist Global Communications to improve or develop its strategic plan, a comprehensive strategic analysis will be performed as well as documented. This analysis will include an overview of the company's role in the telecommunication market place, their perceived impact on the market along with a summary of Global Communications current strategic initiatives, which allow the primary along with the secondary opportunities to be identified. Next a competitive as well as an industry analysis will be performed to better understand the threats, opportunities, weaknesses, along with the strengths in order to make informed decisions. Then by analyzing all the information available recommendations will be made, justifications provided, along with discussions of potential obstacles plus risks. Lastly, the exit strategy is developing to mitigate failure. With a strong strategy along with implementing changes, Global Communications will try to become leaders in the telecommunication industry.

Situation Analysis

Issue and Opportunity Identification

The economic pressures, immense competition in the telecommunication industry, along with the advancement of technology were the key players to Global Communications depreciation in stock value, trading to half the value three years later. Global Communications ability to compete was seriously undermined by cable companies that provided all the services that Global Communications was providing plus more to consumers - no doubt at highly competitive cost. This level of competition created a domino effect resulting in falling stock prices which lead to a crisis of confidence in the company. The company opted to reinvigorate itself by creating strategic partnership in addition to outsourcing some of its services. In its desire for results the company overlooked an important partner in its planning process. As a consequence a clash of interest seems imminent with the workers representatives- the union which seemed very unhappy about being taken for granted.

In order to make sure that Global Communications can compete with the rest of the industry, Global Communications obtained new services for small businesses along with consumer customers primarily. Global Communications offered services in both the local as well as in the long-distance across the country. The company also created alliances with satellite providers that will offer video services along with satellite version of broadband. Furthermore, to improve profitability, the company plans to market itself more aggressively.

Along with the economical issues plus those solutions, Global Communications has an obligation to their employees. At the same time Global Communications needs to implement changes in order to achieve growth. The changes that Global Communications will have to implement will be to downsize their domestic call centers, relocate employees at a 10 percent salary cut, while small business people lose their jobs. All the while, Global Communications has to deal with the Union that opposes their strategy of outsourcing the technical call centers to India and Ireland. If these changes can not be achieved, then there may not be a Global Communications