Gap Analysis

GAP ANALYSIS: GLOBAL COMMUNICATIONS

Gap Analysis: Global Communications

Marie Mosley

Aurora University

March 13, 2007

Gap Analysis: Global Communications

The purpose of this analysis is to assess the current situation at Global Communications (GC), review the issues or opportunities, problems, ethical dilemmas, and formulate end-state goals. GC has experienced more than 50% depreciation in its stock (down from $28 to $11). The company has concluded that their problem is increased competition in local, long distance and international markets as well as diversified cable companies. Ironically, competition is the American way, they has to identify their niche and distinct competencies. Benchmark companies such as AT & T, Continental Communications Inc., Verizon Communications, and other have managed to creativity over come industry adversity while remaining profitable.

GC goals and objectives are to effectively compete in the evolving telecommunication industry; improve earning per share (EAP), meet customer demands, and increase profits and revenues. To that end, the senior leadership team developed a strategic plan to introduce new services to its small business and consumer customers and identified cost-cutting measures. The plan will increase revenues and profit through an aggressive globalization initiative, which outsource and downsize domestic call centers and create centers in India and Ireland. GC's strategies must evolve into a win-win situation for its stakeholders-stockholders, the board of directors, management, employees, Technologies Workers Union (TWU), small businesses and consumer customers.

Situation Analysis

Issue and Opportunity Identification

Global Communications wants to increase revenues, and profits, through more aggressive globalization. Management's strategic plan addresses the desires of the Board of Directors to more effectively compete in local markets and expand into the global; however, the plan has limited solutions and major implications. The exclusion of TWU from negotiations coupled with ineffective communications has resulted in a reduction force (RIF) that can lead to greater organizational conflicts. With the board's approval, the senior team plans too cut cost by outsourcing, downsizing the domestic call centers, and relocating employees (to India and Ireland) at a lower salary.

Effective communication between management, employees, and union is necessary to resolve the internal differences. A business manner of this magnitude warrants a more personal approach such as face-to-face communication, rather than email. Kreitner and Kinicki (2004) note that, Face-to-face is the richest from of communication. It provides immediate feedback and allows for observation of multiple language cues such as body language and tone of voice. The opportunity exists to address immediate concerns and issues that threaten the organization's financial stability and structure.

It is questionable, whether the strategic plan, in current form; outline all GC's future problems and solutions; fortunately, there is an opportunity for management to reevaluating the decision-making process, whereby, seek out other alternatives to increasing both revenue and profits without outsourcing or downsizing their domestic call centers. Although, the senior team has developed a plan, they should reevaluate the implications of their decision. Bateman and Snell (2004) state, decision makers should (1) identify and diagnose the problem, (2) generate alternative solutions, (3) evaluate alternatives, (4) make the choice, (5) implement the decision, and (6) evaluate the decision. (Bateman & Snell)

Stakeholder Perspectives/Ethical Dilemmas

All stakeholders have a stake in wanting Global Communications to be profitable. Increased revenues and profits can lead to growth opportunities for the entire organization and all its stakeholders. The stakeholders gain by: employee having greater job security and benefits, TWU gaining leverage to negotiate; stockholders earning per share increases; management achieving their operational goals and objectives; Board of Director realizing profitable margins and market expansion; and both small business and consumer customers receiving quality products and services.

The stakeholder interests appear self-serving; however, they are all within their rights to seek growth opportunities as well as protect their interest. However, there are times when opportunities and ethics collide. For example, the senior team values the opportunity to expand into the global market, rather than show loyalty and commitment to their employees; they value superior in-group thinking over open channels of communication and union negotiations, and at no time did they propose a win-win solution. Clearly, their allegiances are to the board and stockholders. Fortunately, GC can still turn this situation around and restore the trust, integrity, and respect of TWU and its employees by being open to alternative solutions.

End-State Vision

Global Communications vision it to increase profit margins by 50% and expand into global markets; this poses a challenge during a time when telecommunication companies are experiencing economic pressure and deflating profits. However, using more effective decision-making techniques GC will: increase stock value; rebuild employee confidence and respect; reestablish the trust of TWU by including them in future negotiations; implement effective communication between management, employees and the union. Finally, GC will review its strengths, weaknesses, opportunities, and threats (SWOT) to make continuous improvement to the organization.

Gap Analysis

Global Communications has difficulty with applying effective organizational communication practices with its employees and TWU. Face-to face communication should be in place of electronic mail. GC must not practice in-group thinking, however, be willing to negotiate with the union and make concessions for the betterment of both the company and its employees. Technologies Workers Union makes it clear that past negotiations resulted in a reduction in employee benefits and it will not take a reduction in workforce lying down. GC must make