Gap Analysis:Global Comunications

Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS

Gap Analysis: Global Communications

Machelle Sarff

University of Phoenix

Gap Analysis: Global Communications

Global has been losing profit over the past several years and needs to make major changes in order to survive. In past three years the company stock has fallen from $28 to $11. In order for Global to raise profitability and become more competitive with other companies in the marketplace they have to make some changes including having more options to the consumer and expanding its call centers to less expensive areas of the globe.

The problem that came out of the decisions that Global has made was they did not work closely with their union to make sure that they negotiated a fair compromise that would work for both the employees involved and the company. They completely disregarded the contracts that were with the employees.

Situation Analysis

Issue and Opportunity Identification

The first opportunity that Global realized was that in order to make them more competitive with other companies they had to provide the many services to the consumer that the other cable and telephone companies were able to provide. “First, they plan to realize growth through the introduction of new services, primarily to its small business and consumer customers, who will now be served in both local and long-distance markets across the country. To compete with the local telephone and cable companies, Global has created alliances with a satellite provider to offer video services as well as a satellite version of broadband. Partnership with a wireless provider will allow the small business owner anytime Internet access using wireless telephone or PC cards. Even company information hosted in mainframes can be accessed remotely” (Scenario, Global Communications).

Next Global realized that they needed to cut costs and become more global by outsourcing its call centers to India and Ireland. This will help lower the unit costs for handling calls by 40%. They felt this was the best way to provide its consumers with high quality intelligence at the best price for the company, in turn increasing profitability and gaining globalization.

Stakeholder Perspectives/Ethical Dilemmas

The stakeholders in these decisions are the employees of Global, the Union and Global itself. The employees have a lot at risk here because in order to make Global more profitable the company is outsourcing their call centers to India and Ireland. This will affect the employees because some of them will have the option to relocate which will cut their current salaries by 10% and the others will be laid-off. The union has a stake in this also because they are the one representing the employees without them being involved in the decision making process they have no control over what will happen to the employees that they are trying to protect. Last the company Global itself is a stakeholder. Global is trying to come up with solutions to make the company survive. If they are not able to make drastic changes to the way they are running the business they may not have a future. The problem they are having as a company is that they have always had the philosophy “Our Edge is People” (Scenario, Global Communications). By outsourcing the current call centers this will definitely hurt morale and could cut productivity across the whole company, but they need to cut costs in order to survive. They also did not take into consideration the union contracts that they have with their employees. Last they did not understand the emotional intelligence of all people involved in this process and therefore moved without taking the proper steps to make sure everyone was taken care of in the end, both the company and its employees.

End-State Vision

Global is in need of some major changes in order to become more competitive and

profitable in the future. In order to become more competitive they must have more resources

available to the consumer and cut costs where it can.

First in order to become more global and have more resources available to the consumer

it is necessary for Global to locate more call centers in other countries. This will create

profitability by cutting unit calling costs up to 40%. Global will work closely with the union to

renegotiate the contracts so that the employees will be taken care of. The company may offer

options to relocate current employees to these call centers, there would be a 10% pay cut but the

company could also offer a retention package for those employees that stay onboard. This

package would include a percentage of pay back as a bonus to all of the employees that did

relocate as long as Global were to remain profitable and increase its numbers. There will be

some lay-offs those people involved in the lay-offs will be offered a severance package and

career counselors available to help with their future career success.

Next Global must supply more options to the consumer in order to compete with other

telephone and cable companies. “To compete with the local telephone and cable companies,

Global has created alliances with a satellite provider to offer video services as well as a satellite

version of broadband. Partnership with a wireless provider will allow the small business owner

anytime Internet access using wireless telephone or PC cards. Even company information hosted

in mainframes can be accessed remotely” (Scenario, Global Communications).

By taking these two steps Global will be able to show measurable increases