Gap Analysis: Global Communications

Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS

Gap Analysis: Global Communications

Global Communications is a telecommunications company in a highly competitive industry. Swift and significant changes are scheduled to take place in order to keep the company viable and allow it to grow. Globalization has been the objective of many telecommunication companies because of the inexpensive labor over seas. The new globalization strategy has many implications as a result of not utilizing the appropriate methods of communication. The management styles differ somewhat on the leadership team. The new strategy plans were being discussed via the grapevine before the key stakeholders were advised of the changes that were taking place. The union felt like they were totally left out of the loop. They already had given up benefits to save money for the company and now their jobs are being lost to foreign workers. Global Communications has decided that the only way to maintain the viability of the company in a highly competitive industry is with aggressive globalization.

Situation Analysis

Issue and Opportunity Identification

Global Communications has decided that aggressive globalization is their only way to maintain viability and increase profitability. Telecommunications, as an industry, is highly competitive. With increasing technology, other companies, such as cable and satellite companies, have stepped into the local and long-distance markets and combined services. This has reduced the market yield for telecommunication companies. "Stockholders are bemoaning diminishing returns and speculating about the industry's ability to rebound." (Scenario) The company is under financial pressure and needs to form a new strategy.

The leadership team at Global Communications consists of a Chief Executive Officer that is very aggressive in globalization, however, has only been in the Global Communication's atmosphere for six months. The Executive Vice President of Small Business and Marketing Sales is also new to the company. The Executive Vice President of Consumer Marketing and Sales is a seasoned member of the company with more than 20 years of employment history. He has good work ethic and this has enabled him to "establish relationships with most key stakeholders." (Scenario) The Executive Vice President of Human Resources and Public Relations is also a senior member with 25 years at the company. He has developed "effective relationships with all of the key stakeholders, including the Union." (Scenario) There seems to be a difference in management style between the old and the new members of the leadership team.

In order to implement a new strategy that is critical to Global Communications future in the telecommunications industry, changes that impact the people of the company have to be communicated. Once Global Communication got the new strategy approved, they then realized and reviewed the implications that they had to deal with and communicate to the employees. The changes affect the employees in a major way. The employees were noted as a reason for the success of the company. The new plan called for cost-cutting measures by outsourcing technical support positions, relocating existing employees with a 10% pay cut, and significant layoffs. It was imperative that Global Communications choose the correct communication style to dispense this information. Global Communications had to get the correct information out to the people of the company before the grapevine took over and distorted the information. Although the grapevine can be useful at times, it can sabotage an important strategy by planting preconceived notions into the heads of the people who will mostly be affected by the changes. They did not consider their barriers of communication by including the key players in the decision making process. Since the union is such a large part of the workings of the company, the union representative should have had a "heads-up" as to the strategy that was in the works. Including all the key players might have brought some additional brainstorming into the team and alternatives to the current plan. Representatives from all the departments should have also been included with brainstorming ideas.

Stakeholder Perspectives/Ethical Dilemmas

In order to realize an increase in revenue and profit in the telecommunications industry, Global Communications must work towards becoming a global resource. "No other industry touches as many technology-related business sectors as telecommunications, which, by definition, encompasses not only the traditional areas of local and long-distance telephone services, but also advanced technology-based services including wireless communications, the Internet, fiber-optics, and satellites." (Plunkett, 2007) A team assigned to customer related processes is needed in order to maximize what the customer desires and maximize the profit margin. "With technology increasing at a rapid pace, research shows that high speed downlink packet access via mobile is the next generation broadband." (International Data Corp., 2006) This technology is already strong in Europe.

Senior Leadership at Global Communications has the responsibility for realizing growth of the company to improve profitability. At the same time, the seasoned members of the team feel a social responsibility to the employees. They feel, after all, it is the employees who are their greatest asset. The union feels the company should respect the employees as valuable assets and be honest in communications with them. The employees had already given up some benefits in a recent contract negotiation.

Ultimately, the small business customer and consumer are the ones who demand more service, the newest technology and at the lowest price. With so many telecommunication companies to choose from, the competition to win the customer is high.

End-State Vision

Global Communications is a highly motivated telecommunications company that is under economic pressure due to the fact that the industry is highly competitive. Where they are right now is in competition with local, long distance and international markets for the same business. Where they want to be is offering additional services that generate more revenue for the company. They want to be technologically advanced but at a reduced cost for the consumer. They have decided that globalization will help them realize these goals and become more aggressive internationally. Implementing a new strategy to achieve these goals has proven a real challenge. Global