Gap Analysis: Global Communications

Gap Analysis: Global Communications

A gap analysis can provide companies with the information necessary to make decisions that are most beneficial for the company by looking at the company’s current state and showing where the company may be X years from today.

The gap analysis approach recommends that top management view IT as a strategic implementation that requires a vision of the future organization. This is a three-step process: evaluating the current state of the organization, proposing a vision of the future, and conducting an analysis of the steps necessary to achieve the future vision. From this, management can develop and implement action plans that encompass all aspects of the organization. Some experts recommend adding a fourth step before embarking upon implementation: assessing the strengths and weaknesses of the vision to minimize unwanted side effects. (Thach & Woodman, 1994, 17)

Companies that opt not to perform a gap analysis may make decisions that later prove to be disastrous. The daily newspaper provides startling information relating to the layoff being implemented by Global Communication. Could a gap analysis have prevented such an event from occurring? The information presented below will reveal the results of a gap analysis recently performed for Global Communications.

Situation Analysis

Issue and Opportunity Identification

Three years ago, Global Communication’s stock traded at nearly $28 per share. As of today, their stock has depreciated by nearly 60% and now trades at $11 per share. One of the reasons for the decline in shares is due to increased competition stemming from Cable Company’s partnership with telecommunication companies. While most telecommunication companies offered packages and features relating to telephone services such as local and long distance plans, the cable company enticed consumers and businesses with their bundled offer of internet service, television programming, calling plans that include calling features, unlimited local and long distance with an option to add international calling.

To remain competitive, Global Communications has to change or modify their current strategy. They first had to realize and understand growth potential which may be possible by introducing new services to consumers and small businesses around the world. This would mean a possible venture well beyond their comfort zone and partnering with alliances that would make this a successful move. Their alliance would include satellite providers that would offer video and broadband services and wireless providers that would offer and allow users to access the internet anywhere and at anytime.

Stakeholder Perspectives/Ethical Dilemmas

“Stakeholders represent a central part of the internal and external environment.

As mentioned earlier, these include any person or entity with a vested interest in the organization. Stakeholders influence the firm’s access to inputs and ability to discharge outputs.” (McShane & Von Glinow, 2004, 23) The stockholder’s perspective shows that they are not happy with the diminishing returns that they are receiving. Many speculate if the industry will be able to bounce back from this downfall that they currently experience.

Some members of the senior leadership team understand the need for change but have mixed feelings about the way the change is occurring. Although most know that this is probably the best move for the company and that they must compete in local markets and globalize, they do not want to hurt their reputation of “treating employees well.” (University of Phoenix, 2007) The Executive VP of Consumer Marketing and Sales knows that outsourcing will lead to downsizing and pay cuts of the sales department. He believes that the company should be willing to speak with the employees as quickly as possible about the possible downsizing to avoid employees hearing from other sources. He is also very concerned with employee morale and productivity which could decrease.

The Executive VP of Human Resources and Public Relations spoke with the VP of the worker’s union and expressed the company’s need to profit and grow. In an email sent to the VP of the Worker’s Union, he stated that Global Communications “can't do that without committed employees.” (University of Phoenix, 2007) This statement was presented with the knowledge that the company would be downsizing. “The strategy will benefit the members with higher salaries and more career opportunities.” (University of Phoenix, 2007) The senior leadership team sympathizes with those that will lose their job as a result of the strategic move but plans to offer jobs with retention bonuses to offset salary cuts for the first year. Jobs are also available for those willing to relocate or move to different areas within the company. The leader’s hope that the business will grow enough to allow future salary increases. Leaders worry that the competitors will use this downsizing and outsourcing to their advantage and attempt to come after some of Global Communications best employees. Although not mentioned in this particular scenario, Global Communications has several stakeholders. These stakeholders may include customers, vendors, creditors and the Federal Government. Each could possibly be affected in some manner by Global Communication’s actions.

The Worker’s Union has been willing to negotiate with Global Communication in the past in order to help reach agreements that would provide win-win situations to all involved. The union was not kept abreast of the senior leadership team’s intention to outsource jobs and downsize current employees. The Worker’s Union understands the financial pressures and the company’s need to grow however, many of the workers have already given up over 20% of their educational and health benefits in an effort to help the company’s financial situation. The company’s decision to outsource jobs to citizens abroad without informing the union is considered unethical because it was not included in the contract. The union issued the following statement immediately after the press released the news of Global Communications layoff. “Global should look at the Union as a partner," said Global-Union liaison Maria Antez. "Before making this move, all avenues should have been exhausted. Hiring foreigners to do union jobs is not the answer." (University of Phoenix,