Gap Analysis: Global Communications

Gap Analysis: Global Communications

Global Communication was once a leader in the Telecommunication market. Due to added competition and diminishing returns, Global Communications position in the ever changing telecommunication market has fallen. The senor leadership team has put together a new strategy that will help improve profitability, reduce cost, and aid in the overall improvement of the company as a whole to the dismay of the Technologies Workers Union. The Technologies Workers Union does not approve of the decisions that were made, and a problem arose on how the issue will be handled. Does Global Communication continue on with its current plans? or do Global Communication re-evaluate there decision and come up with a different strategy. The Technologies Workers Union is a major stakeholder in the progression of Global Communication, and the overall success that Global Communication may incur.

Situation Analysis

Global Communication is under tremendous pressure in the telecommunications market. Three years ago its stock traded at $28 per share, and now today it is valued at only $11 per share, which is a 50% depreciation. To make matters worse, the competition in the telecommunications market has increased tremendously. Cable companies put a huge strain on the telecommunications market by providing complete solutions encompassing computers, televisions, and plain old telephone service. To continue to compete in the ever changing telecommunication market, Global Communication senior leadership team developed a strategy to improve profit and cut down on cost. First, the senior leadership team negotiated with each other to come up with ideas that would benefit the company in a short span of time, due to the strain of the stockholders and the diminishing returns. Second, the senior leadership team presented their solution to the board, on which the strategy was approved. Global Communications now were going to introduce new services, primarily to its small business and consumer customers, who would be served in both local and long distance markets. They also created an alliance with a satellite provider to offer video and a satellite version of broadband. Lastly, Global Communications identified cost-cutting measures that will improve profitability, by implementing major layoffs, and moving the companies technical call centers overseas.

Stakeholder Perspectives/Ethical Dilemmas

One of the problems Global Communications is facing is the many stakeholders when it comes to decision making. When faced with making a major decision that will impact the company as a whole, Global Communications most keep I mind the interests, rights, and values of each of their stakeholders. For example, Global Communications senior staff is a major stakeholder, because there are the groups that come up with new ideas and strategies that can improve the company. The senior staff interest is to simply improve profitability and cut down on cost for Global Communication to continue to compete in the telecommunications Market. The senior staff is under direct pressure from the Stockholder within Global Communication, because the stockholders only want to see returns on investments within a short period of time. While on the other hand the Technologies Workers Union wants to benefit it’s members and put the employee first to continue to grow within the Market. All of these interests come in direct conflict with each other. For example, because of the strain that the stockholders were putting on the senior staff, they put together a strategy a quick aggressive strategy that would please the stockholder, but did not put enough effort on the Technologies Workers Union. The senior staff did not use perspective taking- the active consideration and appreciation of another persons viewpoint, role, and underlying motivations. (Galinsky, Adam D, Maddux, William W, Ku, Gillian, The view from the other side of the table, Negotiation, Mar2006, p3-5, 3p, from EDSCOHOST Database), therefore the decision that was made was only beneficial for the stockholders and the senior staff.

End-State Vision

Global Communication faces many issues with the decisions that were made, and how they were decided. These issues can be easily be addressed and prevented with the right measurements and steps before a decision is made. For instance, before a decision is made, Global Communication can start an integrative negotiation strategy with the Technologies Workers Union that creates benefits that’s better for both groups. “Integrative negotiation is simple agreement can be found that is better for both parties. It calls for a progressive winвЂ"win strategy”.(Kinicki & Kreitner, 2003, Organizational behavior p. 71. New York: McGraw-Hill). The integrative negotiating strategy would have allowed Global Communication to seek some kind of agreement with the Technologies Workers Union, and make a decision that would have not been detrimental to their relationship. That decision may have still been to incur major layoffs, but it would have been with the agreement of the union.

Secondly, Global Communication should implement a different strategy to cut cost. Instead of moving its technical call centers to India and Ireland to reduce unit cost for handling calls, Global Communication could implement new training for its current employees to make adjustments for the new services that are offer. Training would allow its current employees to be better educated on the new services and how to apply them to their current jobs. This would prevent Global Communication from making major layoffs, and destroying their relationship with the Worker Union, and also continue to improve in profitability. The introduction of the new services to compete in the Telecommunications market was a good idea to boost profitability, and show quick returns to stockholders.

Lastly, Global Communication should practice better communication options to incorporate every stakeholder in the decision that are being made. In order for Global Communication to incorporate every stake holder they first must understand the difference in the organizational values that each stake holder holds. “Organizational values are the objectives that an individual or group believes are important in running a business”( Andrew J. Ward, Melenie J. Lankau, Allen C. Amason, Jeffrey A. Sonnenfeld, Bradley R. Agle. MIT Sloan Management Review. Cambridge: Spring 2007. Vol. 48, Iss. 3; p. 85). With the organizational values in mind,