Global Communications Gap Analysis

Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS

Gap Analysis: Global Communications

Jeffrey Rice

University of Phoenix

Gap Analysis: Global Communications

Global Communications is struggling to compete in the telecommunication industry. Management has put in place an aggressive plan that will address the company’s 50% depreciation in stock value over the last three years. Kreitner and Kinicki quote “Change begets conflict, conflict begets change” (2004). Global Communications was already facing an uphill battle because of the planned changes and they made a critical mistake by not including all critical stakeholders in the planning and implementation of these initiatives thus isolating the stakeholders and endangering the success of the plan. In order for Global Communications to become a true global resource in the telecommunication industry it must educate, communicate, and negotiate with all stakeholders to reach a win-win situation for all parties.

Situation Analysis

Issue and Opportunity Identification

Global Communications’ customers require services that Global currently does not offer. Global has an opportunity to increase their market share, profitability, and increase customer satisfaction by offering new services and partnering with key business partners. Global Communications has an opportunity to grow customer base by aggressively marketing at an international level.

In order to maximize their initiatives Global Communications must cut costs. Global Communications can cut unit costs for handling calls by 40% by outsourcing technical support call centers to India and Ireland. Global failed to involve the union in upper management’s plan to outsource union jobs and although Global has the opportunity to cut costs and fulfill the customer’s need for more technical staff which India and Ireland can offer, the Technology Workers union is threatening legal action against Global Communications if they continue with their plan to outsource union jobs.

Global Communications’ employees heard about company problems and possible layoffs through the grapevine. Communication through the grapevine can be distorted and escalate the anxiety of employees (Mcshane & VonGlinow, 2004). The lack of communication between management and employees has left employees insecure about their futures, and has made it hard for the company to retain their employees. Although some employees will lose their jobs, Global has an opportunity to improve communication with employees so they can anticipate future conflicts and take steps to resolve conflicts if they become dysfunctional (Kreitner & Kinicki, 2004).

Stakeholder Perspectives/Ethical Dilemmas

The most important stakeholder is the customer! The customer gives purpose to the other stakeholders by creating the demand for services. Global Communications’ customers expect high quality products and services at a low price, but domestic customers also have loyalty to businesses that are loyal to United States employees. Global Communications has implemented a plan to lower costs and improve services at a cost of appearing callous to their employees by domestic customers.

Senior management has the responsibility to analyze and prioritize the expectations of all stakeholders. Global Communications is struggling to compete in the telecommunications market and needed to make changes. The company’s highest priority is to cut costs and compete on a global scale. Senior management had to make a hard decision to outsource jobs resulting in layoffs. Although they are trying to act in the best interests of all stakeholders by becoming more competitive, they failed to educate the stakeholders the basis of their decisions creating the problems they are now facing with the Technologies Workers Union and the employees who are not a member of the union.

The Technologies Workers Union and the employees who are not a member of the union are understandably more concerned about their individual goals than the goals of Global Communications. The employees are wondering why this is happening to them and are upset at the way Global Communications handled the situation. The union will have the dilemma of negotiating with Global Communications to get the best packages for the employees who will be retained, but will also need to concede that some employees will lose their jobs.

End-State Vision

After implementing the restructuring plan of offering new services and outsourcing technical support call centers to India and Ireland, Global Communications will become a major competitor in the telecommunications industry. The company’s stock holders will be regain confidence in the company because Global’s stock will regain its value as the company becomes more global and earns back their share in the market.

As a result of the company’s revitalization and growth in market share, Global will be able to offer better salaries and benefits for its workers. Global Communications will work with the Technologies Workers Union face to face to negotiate fair compensation plans for retained employees and fair severance packages for those employees who will lose their jobs. The company will improve communication throughout the entire organization in attempt to inform employees about company issues before they receive news through the grapevine. Global Communications will promote an atmosphere where employees will coordinate their individual work effort toward a common goal (McShane & Glinow, 2005).

Global Communications must follow through and evaluate their plan to become more international and compete in the telecommunications market. “Decision makers need to establish reasonable goals and benchmarks to make sound judgments about the effectiveness of the decision. It is also important to allow enough time for a decision to take effect” (Gomez-Mejia & Balkin, 2002).

Senior leadership will evaluate changes in the telecommunications industry, and act accordingly involving all stakeholders to continue to thrive in the marketplace.

Gap Analysis

Global Communications has found itself a victim of modern day progress. The telecommunications industry has changed. The competitors are offering