Gap Analysis Global Communications

Gap Analysis: Global Communications

The new millennium presents high demand of new and upgraded services in the local, long-distance, and international telecommunications. There is high competition in the industry and companies such as Global Communications have come under huge economic pressure. Over a three-year period, the company stock declined by more than 50% and stockholders are not happy. Global Communications is considering aggressive methods to become profitable by offering appropriate local and international services through partnership arrangements. However, the company's approach to achieve global presence resulting in potential layoff presents a potential legal issue with the union. This paper elaborates the current situation and identifies the issues and opportunities as well as the stakeholders' perspectives. The analysis concludes with a statement of the end-vision and gap analysis.

Issue and Opportunity Identification

Global Communications may face solvency if the company does not enhance its services to compete in the local and long-distance market. The stakeholders are nervous because of the more than 50% depreciation of the company stocks over a three-year period. The financial problem is an opportunity for Global Communications to find ways to become competitive and profitable. The senior leadership team came up with the alternatives to accomplish this goal. The first alternative is to provide new and enhanced services compete in the local and long-distance markets across the country through alliances with a satellite provider and partnership with a wireless provider. The second alternative to improve profitability is to cut call-handling costs by moving the technical call centers to India and Ireland. In addition, the company will establish global presence through aggressive marketing.

When the call center functions are outsourced, jobs at the company would be eliminated. The downsizing survivors are subject to a potential pay cut. A union represents the employees at Global Communications but the senior leadership team did not take the opportunity to discuss the issues with them and other stakeholders (customers, partners, and shareholders) early in the planning efforts to hear their needs, concerns, and possible recommendations. The union, employees, and the public heard about the situation at Global Communications through rumors and the media. The senior leadership team focused on the internal problems and put minimal considerations to the impact of their decision on the stakeholders.

Stakeholder Perspectives/Ethical Dilemmas

The senior leadership team is a mixture of new and old members. Katrina Heinz, Chief Executive Officer (CEO), joined Global communications six months earlier and her priority is to 'increase both revenue and profits through more aggressive globalization' (Uof P Global Scenario, p.1). Nancy Everhardt, Executive Vice-President (EVP) of Small Business and Marketing Sales, is new and endorses the outsourcing plan and hiring qualified salespeople. She is in favor of the layoff and informing the employees. Sy Rodriguez, EVP of Consumer Marketing and Sales, is result-driven and has been with the company for more than 20 years. Joel Thompson, EVP of human resources and Public Relations, has 25 years of service. Another stakeholder is Maria Antez, Vice-President of the Technologies Workers Union, who acted as the liaison between the union and Global Communications.

The senior leadership team demonstrated an ethical dilemma at varying degrees between the downsizing and outsourcing plan and the company's goals. There is a conflict of ethical correctness and business reality. Sy Rodriguez and Joel Thompson are concerned about the major implications of outsourcing such as low morale and impact to productivity. They empathized with the employees who will lose their jobs and those retained who are expected to take 10% salary cut. Sy Rodriguez feared that the rumors or the grapevine would destroy the company's good reputation as an employer. In addition, Sy and Joel believe the company needs to work on a communication plan, new set of corporate values to reflect the realities, and trust by the people. Looking forward to hiring 1000 qualified salespeople, Nancy Everhardt's response to Sy at the group meeting had strong intonation that may have been perceived as disregard of the current employees. Sy came back with an emotional and subjective response because Nancy's group is not impacted. However, Nancy presented a strategic approach to soften the predicament of employees by offering 15% retention bonus and raising salaries over a three-year period with business growth. Katrina, the CEO, maintained her neutrality to the group's views, reinstated the company goal, and delegated leadership tasks. On the union front, the union liaison felt slighted that she was not involved in the discussions especially with a previous negotiation resulting in health and benefits reduction. Although a face-to-face meeting was immediately set for Joel Thompson and the CEO with Maria Antez to alleviate the situation, the union elected to file a legal action.

End-State Vision

Profitability is essential to the company's survival and success in the industry. Global Communications seeks profitability by offering appropriate services and attaining global presence. The company's vision must incorporate the lessons learned from the scenario and align a values-driven approach towards customer and employee satisfaction to promote company growth. Global Communications must treat their stakeholders especially their employees with respect and get them involved because they are the foundation that provides customer satisfaction and ultimately profitability. A statement of vision may be 'Our foundation is our people.'

Gap Analysis

The current situation at Global Communications is characterized by services that are outperformed by competitors in a highly competitive industry. Today the company stock is at $11 per share, down from $28 three years ago. The company expects to realize profitability growth through the introduction of new services, primarily to its small business and consumer customers,