Gap Analysis – Intersect Investments
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Gap Analysis: Intersect Investment Company
Katrina L. Bailey
MBA 520/Transformational Leadership
Timothy DeLong
December 3, 2007
Gap Analysis: Global Communications
Introduction
Since Sept 11, 2001, the financial industry has been struggling with chaos and volatility. As a result, many financial firms are struggling to maintain their clients’ trust, and credibility on Wall Street. Unfortunately, Intersect Investment Company has not been exempt. In an attempt to turn things around and regain its footing in the industry, Intersect CEO, Frank Jeffers, has come up with an exciting new plan to galvanize growth in the organization. This new plan will involve revolutionary organizational changes, and a much needed overhaul of the company’s brand image, helping to establish long-term customer relationships and trust on Wall Street. In order to move the company along this path, a Gap Analysis has been performed which will identify the issues and opportunities that have arisen as a result of the current crisis, the ethical dilemmas that stakeholders are confronted with, and where the company sees itself in the future.
Situation Analysis
Issue
Opportunity
Reference to Specific
Course Concept
(Include citation)
Concept
Increased competition in local, long-distance and international markets from the cable companies, who offer complete solutions that seem to be outselling the new calling features offered by Global and other traditional communications companies.
Customers are demanding more technical sophistication from sales people
Union is not pleased with the latest negotiations that have resulted in benefit reductions.
Union does not support plan and will take action through all available resources.
Union has lost some faith in the company because they were not informed of what was going on and it is counter to what they had previously been promised
Global plans to launch new service plans to small business and consumer customers.
Opportunity to reestablish a good relationship with the Union based on GCs handling of the situation from here on out.
“In an international deal, just as at home, you need to know exactly who’s involved in that larger decision process and what roles they play”
(Sebenius, 2004, pg 5).
“Consensus requires agreement
among the members of the other side’s negotiating team; at other times, it requires agreement from the
broader enterprise and can include external stakeholders
and governments”
(Sebenius, 2004, pg 10)
The Players
Consensus Negotiations
Should employees be told the entire truth if it will result in them leaving the company before the company is ready?
Outsourcing will result in a loss of jobs and a decrease in pay for those who are retained
Major players were not informed of what was going on in order to keep word from getting back to the board
Opportunity to gain or maintain the current employees trust, and possibly prevent a mass exodus once employees are told of the new plan, if it is presented correctly.
“If employees are unlikely to accept a decision made without their involvement, then some level of participation is usually necessary” (Glinow, McShane, pg 61, 2005).
Decision commitment
Issue and Opportunity Identification
In order to remain competitive in their industry Global Communications must add additional services and customer solutions, while expanding into an international market. There has been increased competition in local, long-distance and international markets from the cable companies, who offer complete solutions, and seem to be outselling the new calling features that Global and other traditional communication companies currently have. In an attempt to combat this, Global plans to launch new service plans to small business and consumer customers, as well as partnering with a satellite provider and a wireless provider. These agreements will provide Global with the opportunity to not only satisfy current customers, but to also increase their market share. Theirs is a two-pronged strategic plan, covering both residential and business customers. By creating multi-service telecommunication solutions Global can effectively compete on a local level and create a path for expansion into the global markets.
Faced with cutting costs and increasing their presence in the global marketplace, the company has come under fire from their employees and Union officials. Having already sacrificed by accepting a 20% reduction in their education and health benefits, the employees and the Union feel that they have been more than fair in helping the team as a whole. Global has every right to be concerned about keeping the Union happy, but needs to be creative in how they will handle the situation with remaining employees. The organization has been placed in a position where it must sacrifice its loyal employees to ensure the growth and profitability of the company in the future.
Global Communications is considering a 10% reduction in employee pay and a proposed 15% employee retention bonus to help alleviate the blow to paychecks. Management has also