Gap Analysis

Gap Analysis: Global Communications

Global Communication is a company that competes in the telecommunication industry against other telecommunication companies and presently the cable companies. A situation has arisen within the industry and the problem is the amount of companies competing in the same industry. The gap analysis will focus on the main issues of Global Communications; competition, decision making, communications, and conflicting interest of the stakeholders. Then the gap analysis will provide an end-state vision of what the Global Communications should do to be a successful company in the market and how wide that gap is from the actual current situation.

The demand for telecommunication has increasingly soared with the advancement of technology adding competition to the market, especially Global Communication whose stock is presently valued at $11 from three years ago when it was $28 (Global Communications). Companies are adding new features and providing more services to their costumers also entering in the international markets to cut cost productions. With all the competition surrounding Global Communications, the major threats are coming from the cable companies who are providing computers, televisions, and telephone services to its consumers. If Global Communications doesn’t want to drop and enter the lower have of the competition the company will have to find solutions that can compete with the competition.

With the competition increasing, Global Communication plans to take two new approaches; adding new services to their customers and to downsize and relocate their employees. By introducing new services the organization believes this will give them an edge or at least let them compete with the other telephone and cable companies. These services will provide internet access at all times to the company’s consumers by using wireless programs. The second approach is cost effective measures that should improve the company’s profits in the future by paying relocating their technical call centers oversees where they can pay the employees less.

With the approach of making the company profitable by downsizing and salary cutting the remaining employees, and then relocating internationally, the company runs into issues of critical thinking and business ethics. The company has a reputation of being loyal to their employees in which their employees have good productivity. Almost like the saying, “A happy employee is a hard working employee.” With the downsizing of the company, the organization could possibly be looked upon negatively by the public which could lose them customers. Additionally to losing customers the employees of the company potentially could have a lower productivity rate with the salary cut. The ethics issue is how the company is falsely advertising that they take care of employees when actuality shows they are not.

With the relocation of the technical support centers located oversees, the company could receive the same productivity as previous when the centers were located nationally and pay their employees less causing an increase in profits. The business could lose respect from their current employees but with the relocation, downsizing, and pay cuts, the organization has the opportunity to compete with the market’s competition in the long term.

The last problem Global Communications is dealing with is a communication issue. The company is broken up into teams that have trouble communicating to the other teams and could cause major problems at the end. In this situation senior staff fore passed on communicating with the Union Board and now the Union Board plans to take action by supporting the employees who could potentially take the biggest hit by losing their jobs. If senior management would have communicated with the Union Board, the issue would eventually be solved; but now, not only does the company have an external issue with competition from other companies, they have an internal conflict with the Union.

With the communication issue between Senior Management and the Union Board, the company’s opportunity will take a loss. If Senior Management prevails and the company goes with their solution then the Union Board will take action and bring the government into the situation. If the Union prevails and the company’s plan to downsize and relocate has to be altered, then the company might not be able to compete with the outside competition and will receive long-term effects.

Global Communication has a serious situation on hand dealing with conflicting interest of their stakeholders in trying to compete within the market, and will have to figure out what values are most important to the organization as a whole. The stakeholders consist of Senior Management, Union Board, consumers, and shareholders. Each stakeholder has a different perspective of the organization and they believe their view is best for the organization.

The Senior Management perspective is the organization should compete in the telecommunications industry and maximize their profits. They are looking at long-term goals not the immediate effects and will sacrifice their own employees for positive results. They believe in putting their reputation aside to keep the company in existence and satisfy their stockholders and customers.

The Union Board perspective of the organization is different from the Senior Management; their interest is employee’s satisfaction and rights. They want the organization to be successful but not at the expense of the employees. The Union also believes they should be notified and able to participate in any decisions that would affect the company relationship with the employees. If not they will take matters in they’re own hands and try their best to bring justice to the organization.

The consumers are another stakeholder of the situation with Global Communication; without the consumers the company doesn’t exist. The consumers believe the organization should offer as much as their competition and if not, they will leave the company and go where services are available.

The last stakeholder is the shareholders and after seeing their shares drop in the last three years from $28 to $11 (GC) they play an enormous role in the company’s decision. They want the company to do well because they are investing into the company and if the company continues to fall they will take their revenue and invest it in another market or competing company. They can care less of the internal or external issues of the company; they just want to see profits.

With the advancement of technology, Global Communications could possibly see potential similar situation, and to stop a similar problem from happening,