Gap Analysis

Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS

Gap Analysis: Global Communications

George

University of Phoenix

Gap Analysis: Global Communications

Global Communications is a telecommunications company that is trying to survive in an industry that is highly competitive. To do this they want to become an international company which will increase profits and revenue while creating more jobs in the future. This means that they will have to downsize call centers in United States and outsource work overseas. They have brought in new people on the senior leadership team who specialize in the task that need to be preformed to allow the company to reach these end state goals. The other members of the senior leadership team have good working relationships with the key stakeholders involved in the situation. Communication will be the most important factor in this change of direction and the members of the senior leadership team that have these relationships will be important in this. Communication is the key to having a successful organization.

Situation Analysis

Issue and Opportunity Identification

Global communications is a telecocommunications company which is in an industry that is dropping off. Stockholders are starting to complain about diminishing profits and are speculating on the industry's ability to bounce back. Three years ago the stock price was at $28 per share today the stock price is valued at $11 per share. The company is under tremendous economic pressure to increase profits. The problem with the industry is there is too much competition. Local, long-distance and international markets are all competing for the same business. The industry suffered a huge setback when cable companies stepped into the picture. They started to provide complete solutions that included computers, televisions, and plain old telephone service. The only place they were not very successful in was international markets. Global communications senior leadership team has developed a plan to turn the tide and increase profits. First they plan to realize growth through the introduction of new services. These services will primarily be to the small business and consumer customers who will now be served in both local and long distance markets across the country. To be better able to compete with the local telephone and cable companies global has joined forces with a satellite provider to offer video services as well as satellite version of broadband. The new relationship that global has with a wireless provider will allow the small business owner to have access to the internet anytime using a wireless phone or a PC card. They will now have access to company information hosted in the mainframe from remote locations. Second the senior team has identified cost-cutting measures that increase profits. Global will move some of its technical call centers to India, and Ireland. By doing this the company has an opportunity to reduce unit cost for handling calls by nearly 40%. The company will also downsize the domestic call centers while expanding our consumer call centers. Global will try to transfer some of the employees but they will be expected to take a 10% pay cut. Global communications has not communicated with its union about the plan for downsizing. Effective communication is very important in this situation this is something that should be done face to face because it is an emotional situation. "Communication refers to the process by which information is transmitted or understood by to or more people." (Mcshane 2004 p.324) This is something that could have been done on purpose because research has shown that "there is a correlation between job satisfaction and job performance."(Mcshane 2004 p.124). Global Communication has always stated that there edge was there people. This will be another issue of public perception. This still will give the company the opportunity to realize its goal of becoming a profitable global telecommunications company

Stakeholder Perspectives/Ethical Dilemmas

There are several stake holders involved in the situation with Global communications. They come from the side of the senior leadership team, the stockholders, and the union. First there is the senior leadership team. Katrina Heinz, Chief Executive Officer, she was recruited from a European long distance provider about six months ago. Increasing profits and revenue through globalization is her main objective. Sy Rodriguez is the Executive Vice president of Consumer Marketing and Sales. He has been with Global Communications for over 20 years and established relationships with most of the key stakeholders. Sy is focused and driven and none for getting the job done. Nancy Everhardt is the Executive Vice President of Small Business and Marketing Sales. Nancy is new to the company and comes from a local telephone company where she grew the small business market by creating new and innovative packages of valuable solutions for the small to medium sized business owner. Joel Thompson is the Executive Vice President of Human Resources and Public Relations. He has been at the company the longest of any of the senior members. He has an in depth understanding of the telephone business and has effective relationships with many of the key stakeholders including the union. I think that the company has been planning some of these moves for a while. Senior leader ships has been replaced by people who specialize in the plans that they have for the company such as Katrina, who specializes in aggressive globalization, and Nancy who specializes in growing the small business market. They kept the members of the team that had relationships with the key stakeholders which were Sy who had been with the company for over 20 years and Joel who had been with the company for over 25 years. I think that Sy and Joel face ethical dilemmas that Katrina, and Nancy do not. They have been with the company for a long time and have established relationships with many people in the company. They have always done business under the saying, our people are our edge. Now they must go against this in order to increase profits and revenue because they have an obligation to the stockholders whose bottom line is profits. On the union side there is Maria Antez. She is the Vice President in technologies workers union. Maria has been the liaison between global communications and the union for the past 10 years. She has established effective relationships with most of the company executives