Gap Analysis Global Communications

Gap Analysis: Global Communications

Global Communications is planning an immediate implementation of a two pronged approach to gain a competitive edge along with venturing into global markets. The senior leadership team has met and is ready to roll out the plan to the Union, employees and shareholders. Leadership believes that GC’s problem is too much competition.

A situation analysis will be completed, identifying issues and opportunities. The two pronged approach from the stakeholder’s perspective with ethical dilemmas, will be reviewed. There will be an end-state vision and a gap analysis. At the end, a conclusion will be drawn, based on the information provided.

Situation Analysis

Issue and Opportunity Identification

Global Communications is an example of the declining telecommunications industry. There is too much competition, local, long distance and international markets are all competing. The stock value has decreased and the shareholders are wondering if the industry will rebound.

GC’s Board of Directors has approved the senior leadership’s two-pronged aggressive approach to enter and compete in local markets and to step up the globalization initiative. The business case showed by setting up new call centers in India and Ireland, there is an opportunity to reduce unit cost for handling calls by almost 40 percent. The plan is for GC to transform into a global corporation within three years.

Stakeholder Perspectives/Ethical Dilemmas

GC’s shareholders, employees and the Union are all concerned about the new strategy. They all understand that the telecommunications industry is changing and there has to be some concessions but, what happen to the communication within the organization?

The shareholders are concerned about the diminishing returns. Three years ago, their stock traded at $28 per share, today’s value is $11. This is more than 50 percent depreciation. There is also speculation regarding the telecommunication industry as a whole and if it will rebound.

The Union’s governing board got wind of the new strategy and wanted to know why the Vice President of the union didn’t give them a heads up. The Vice President didn’t know anything about the strategy and felt that the Union was being taken advantage of. During the bargaining negotiations, the Union gave up major benefits. They believed that it was necessary for the company’s future growth. Senior leadership said that the strategy was private until it was approved. The Union’s Vice President felt that their management should have been part of the initial discussions. There are supposed to be part of the team.

The employees are questioning the integrity and loyalty of GC. GC says that their competitive edge comes from loyal people. Now senior leadership wants to outsource jobs to India and Ireland. This means that jobs will be eliminated. There are positions with the Consumers division and people will have an opportunity to relocate. But because that division works on a leaner budget, the relocated employees will have to take a 10 percent salary reduction

End-State Vision

Global Communications has become a driving and innovative leader in telecommunications and has successfully expanded into global markets.