Gap Analysis: Global Communications

Gap Analysis: Global Communications

Global Communications was once a major front runner in the telecommunications market. This market is rapidly changing and Global is not keeping up with the new technology, which is depreciating the value of their stock. The Senior Leadership Team is responsible for coming up with a method that will bring Global Communications back into the competition and prevent the stocks value from decreasing. The company decides to take an aggressive "two pronged" approach (Scenario Two: Global Communications 2007). They will pair up with another company that has different but similar products, this will allow them to complete with the local companies. Finally they will outsource some divisions of the company to other countries so that the can compete globally.

Situation Analysis

Issue and Opportunity Identification

Global Communications' profits have decreased and their stock has been depreciating due to their lack of competition in the market place. There are several issues that they are facing but they present opportunities that they could take advantage of. The Senior Leadership Team must take into account the concepts that surround them and how they affect the issues and opportunities related to the problem. The problem being Global Communications not being updated on the technology, so therefore they are not able to compete globally.

Competitiveness is a big part of a company being successful in the market place. Global Communications must deal with the concept of competitiveness. The issue is that they are already competing against companies who provide the ideal all in one service. They have the opportunity to build good business relations by pairing with another communications company to provide the ideal service. Global Communications has set up a partnership with a satellite company so that they can compete with cable and telephone companies and provide all of the same services that they are, (Scenario Two: Global Communications 2007

). By entering a partnership both companies are benefiting as they are able to reach more customers this way and increase profits.

Global Communications Senior Leadership Team has decided on a cost-cutting approach to help bring Global Communications back financially. All of the call centers locally take up a lot of capital each year and they are not effective in keeping Global competitive. By outsourcing call centers the company would be saving money and become more effective in handling calls that came in across the globe. Outsourcing improves profits and shows the company aggressively marketing globally which also will attribute to increasing profits, (Scenario Two: Global Communications 2007).

Improving profits mostly consists of some kind of downsizing in almost all companies, and Global Communications is no different. In the process of outsourcing call centers to other companies it is causing Global to downsize domestically. Although some will retain their job, many will be laid off and those who are not will take a 10 percent pay cut, (Scenario Two: Global Communications 2007). That is money that can be put towards the global call centers where the labor is also cheaper. The company does have the opportunity to live up to the expectations on how they treat their employees, which they have set themselves. If Global gathers its employees together for the Senior Leadership Team to announce it rather than let the information trickle through the grapevine (Scenario Two: Global Communications 2007), it will demonstrate that they care enough to make sure the employees understand. Also as one team member suggested they have the chance to provide career counselors so that not only can the assist with the transition they can also help the employees look at their future (Scenario Two: Global Communications 2007).

Ethics is very important in the business world because if a company is known to have unethical business practices then other companies are not going to work with them and employees will not want to work for them. Global Communications did not include the union in their problem solving discussion so it appears that they were purposely cut out. In any situation cutting an important counterpart out of decision making damages ones reputation. The Representative was offended because she had been instrumental in previous changes that affected the workers more negatively than the company. The representative feels jilted and voices her objections and accuses Global of being unethical (Scenario Two: Global Communications 2007), During this meeting Global had the chance to begin new negotiations to suit the Union but also work with changes that had already been made.

Stakeholder Perspectives/Ethical Dilemmas

Global Communications has three main stakeholders in the company and what happens to and with it. The Stockholders, Senior Leadership Team, and The Union/Employees all stand to benefit and lose from what may or may not happen with Global Communications. All groups and their ideas must be taken into account but at the same time one must realize it is impossible to have a company flourish and all major stake holders being 100 percent happy. There are always going to be some kind of dilemmas due to the different perspectives and values held by the groups mostly affected.

The stockholders are mainly concerned about profits because that is what affects their part in the company. "Three years ago, its stock traded at $28 per share, today, the stock is valued at $11, more than a 50 percent depreciation," (Scenario Two: Global Communications 2007). These numbers could be quite startling to those who are major stockholders in Global Communications, enough that they may pull out and/or put pressure on those in the upper echelon of Global to do something about it. Stockholders value the money, they are not thinking of employees and how they may be affected, but that is not their place to do so. Unfortunately the stockholders interest may conflict with the Unions because their bottom line is money and profit.

Global Communications has a Senior Leadership team whom work together to balance out what is best for the company as a whole, including the employees. The team has to do what they can to improve Global's standing in the stock market which means remain competitive. They have to try and take in account what is good for the company and the employees/union. Unfortunately that becomes an ethical conflict since what helps the company negatively affects the union/employees. Ultimately the Senior Leadership Team leans with what is best for the company, which leads them to a conflict with the Union.

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