Global Communications Gap Analysis

Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS

Gap Analysis: Global Communications

Gap Analysis: Global Communications

Issues and new business opportunities have been presented at Global Communications. Forced by the high competition, Global Communications stock value drastically fell during the past three years. The decrease of the stock value lead to new business opportunities abroad. The strategic plan of outsourcing its technical positions and downsizing the local call centers and the introduction of new services, locally and internationally will lead to improve profitability and cut cost. An already troubled relationship between the Union and Global Communications was destroyed due to the implementation of the strategic plan without the willingness of a negotiation with the Union. Several perspectives and ethical dilemmas arose. A strong relationship must be established by both parties to regain Global Communication market value.

Situation Analysis

Issue and Opportunity Identification

Global Communications stock value decreased more than 50% over the last three years. Its value traded from $28 to $11. This occurred due to the high competition Global Communications was facing from local, long-distance and international markets, especially from the cable companies who were providing a larger array of services solutions surrounding computers, televisions as well as plain old telephone service (POT). In light of the events Global Communications was forced to cut cost by outsourcing thousands of its technical jobs to new call centers in Ireland and India. The outsourcing would provide an opportunity to improve profitability and become a real global resource. The opportunity consisted of the introduction of new services which targeted mainly its small business and consumer customers. These new services would serve in both local and long-distance markets throughout the country. Within the plans was also an alliance created with satellite providers to be able to offer video conferencing and broadband. Global Communications planned to expand its presence globally by aggressively marketing itself on an international level.

A sour relationship existed between Global Communications and the Technologies Workers Union (Union) due to the latest negotiations between the two. The last negotiation resulted in a 20% cut in both education and health benefits, which was a result of financial problems. Global Communication failed to inform the Union of its strategic plan of outsourcing and downsizing its domestic call centers. Many employees would lose their jobs and other would be relocated expecting to take an average of 10% pay cut. Global Communications failure to communicate properly the Union that the new plan was necessary for the business to remain competitive and become an industry leader led to destroy the already weak relationship.

Stakeholder Perspectives/Ethical Dilemmas

Even though the main stakeholders of any business are the "shareholders, employees, customers, suppliers, creditors, society, government and competitors," (tutor2u, 2007) the following stakeholders I believe are the most important.

Global communications concentrated mainly on the interests of the stockholders because they are suppose to receive the corporation profits as dividends. Because of the same reason perhaps is believed that stockholders are the most important stakeholders in a business. In reality stockholders future is not one hundred percent dependent on how profitable corporations are in which they own stock because most do not invest in any one stock all his or her money and risk losing it if the stock falls or the corporation fails. Employees, weather unionized or not, have the biggest stake in the success of a business. Employees depend upon the business for continuance of their jobs. Their livelihood depends on it, and if the company fails or performs poorly they are either fired or layoff and may find it difficult to acquire another job. Aside from the income they receive employees also depend upon the business for the working conditions it provides, the way they are treated by management and by other employees since half of employees waking lives are spent at work.

The customers are important stakeholder for whom the success of a business is attributed. The success of a business provides with a choice of goods, and even though they may have alternatives, customers have a preference for a business products or services. If no alternatives are available, customers depend on the products or services of a company; therefore, a successful business must provide high quality products or services at a low price assuring a good value for their money.

End-State Vision

Global Communications must re-establish the lost working relationship with the Union by working closely on a plan to create and keep as many jobs as possible. This action will help Global Communications regain its philosophy of "Our Edge is People." Union workers have always been regarded as lazy. Many of us at one point have been entertained with Union blown out of proportion and fruitless stories about resistance to new work procedures that might increase productivity and not ones that would decrease labor demand. Unions are regarded as spending too much time trying to work into contracts forcing companies to use more people or labor than what is truly needed for a specific job. The intention of course, is to collect more dues. The truth is that unionized companies are far more productive than non-union companies. "After nearly a century of union-management warfare in the U.S., a series of nationwide surveys showing that union shops dominate the ranks of the country's most productive workplaces may come as a surprise. The average unionized establishment recorded productivity levels 16 percent higher than the baseline firm, whereas average non-union ones scored 11 percent lower." (Wallich, 1998)

Gap Analysis

To be able to arrive at the end-state vision, a strong commitment from both Global Communications and the Union must be established to adhering to the terms of a contract regardless of the situations. Unions must also assist in avoiding the creation of an "us