Gap Analysis: Global CommunicationJoin now to read essay Gap Analysis: Global CommunicationGap Analysis: Global CommunicationAndrew HaskinsUniversity of PhoenixMBA/500-Foundation of Problem-Based LearningJuly 19, 2007Gap Analysis: Global CommunicationThe year is 2004 and Global Communications is recognized as the leader in the telecommunications industry with services priced below their competitors and their stock trading at $28 per share. Now fast forward three years to 2007 and Global Communications has fallen victim to modern day progress by not keeping up with technology, lack of globalization and operational expenses at an all time high. Their shareholders are dissatisfied with the 50% deprecation of their stocks and speculate if the company has the able to rebound and become a viable player in the telecommunications industry once again.
Gap Analysis: Global CommunicationsMark W. Schreiber, Founder, International Information CorporationJuly 10, 2007Global Communications has sold the majority of its U.S. headquarters in Washington D.C. on Wednesday, a situation that raises questions of how long this country will continue to be dominated by large companies who have all seen their market share slip. In the process, the company has lost much of its strategic credibility and may yet go the way of Verizon, Amazon and Apple, all of which control a sizable portion of market share in the U.S. market over the next decade, leaving a growing market capitalization to be found in other global industries such as energy, utilities, telecommunications and transportation.The news comes as several high tech leaders say that the country’s new telecommunications business model is doomed, as it has to adapt to evolving business trends and the changing value of a global market. Former CEO of Microsoft Terry Myerson told his own U.S. Congress committee about plans to replace the firm with a new competitor – a company that is currently valued at $32.5 billion.Myerson said that his company would create a new global competitor that was capable of providing services to the “billion dollar” market. “If you look at technology, we have the power to innovate right now and then we go through a transition to make sure that everything we do is well done and we stay on-time,” Myerson said.Myerson noted that he was not alone in this sentiment over the years. Cisco CEO Carlos Arcec joined this year in a bid to create the world’s first self-driving “smart” car by self-driving cars, the first such self-driving taxi to move forward.”We are in a race to create a system where every company in the world is working on creating a system where every company is going to be able to perform to its highest standard,” Arcec said.Arcec is seen by many as a great friend when it comes to global communication. During the Clinton Administration, he and others were known together as “the one team with the greatest global reach,” and Arcec served as Chairman and CEO for Presidents Bill Clinton, George H.W. Bush, Bill Clinton and Barack Obama.In 2001, Arcec became a vocal critic of the U.S. government and called for more transparency in government contracts. This time around, Congress is likely to block any attempt to change such contracts, but he did not end up backing away from the idea, calling his position of neutrality “very reasonable” and “probably worth giving more thought.” Arcec’s opposition to “fake information” may be partly the blame for the stock market volatility that has hit the company’s valuation this year. Since its initial public offering, Global Communications has done well selling off some of its assets but is struggling to meet targets for growth. In his report, Arcec said that the company wants to develop technology that would increase its margins in order to meet demand, so it will do so by building a “big data, consumer insights engine that could revolutionize the way people view financial decisions.” Global Communications’s current business model appears geared to create jobs overseas – and not a small business in the U.S. or the U.K.
Gap Analysis: Global CommunicationsMark W. Schreiber, Founder, International Information CorporationJuly 10, 2007Global Communications has sold the majority of its U.S. headquarters in Washington D.C. on Wednesday, a situation that raises questions of how long this country will continue to be dominated by large companies who have all seen their market share slip. In the process, the company has lost much of its strategic credibility and may yet go the way of Verizon, Amazon and Apple, all of which control a sizable portion of market share in the U.S. market over the next decade, leaving a growing market capitalization to be found in other global industries such as energy, utilities, telecommunications and transportation.The news comes as several high tech leaders say that the country’s new telecommunications business model is doomed, as it has to adapt to evolving business trends and the changing value of a global market. Former CEO of Microsoft Terry Myerson told his own U.S. Congress committee about plans to replace the firm with a new competitor – a company that is currently valued at $32.5 billion.Myerson said that his company would create a new global competitor that was capable of providing services to the “billion dollar” market. “If you look at technology, we have the power to innovate right now and then we go through a transition to make sure that everything we do is well done and we stay on-time,” Myerson said.Myerson noted that he was not alone in this sentiment over the years. Cisco CEO Carlos Arcec joined this year in a bid to create the world’s first self-driving “smart” car by self-driving cars, the first such self-driving taxi to move forward.”We are in a race to create a system where every company in the world is working on creating a system where every company is going to be able to perform to its highest standard,” Arcec said.Arcec is seen by many as a great friend when it comes to global communication. During the Clinton Administration, he and others were known together as “the one team with the greatest global reach,” and Arcec served as Chairman and CEO for Presidents Bill Clinton, George H.W. Bush, Bill Clinton and Barack Obama.In 2001, Arcec became a vocal critic of the U.S. government and called for more transparency in government contracts. This time around, Congress is likely to block any attempt to change such contracts, but he did not end up backing away from the idea, calling his position of neutrality “very reasonable” and “probably worth giving more thought.” Arcec’s opposition to “fake information” may be partly the blame for the stock market volatility that has hit the company’s valuation this year. Since its initial public offering, Global Communications has done well selling off some of its assets but is struggling to meet targets for growth. In his report, Arcec said that the company wants to develop technology that would increase its margins in order to meet demand, so it will do so by building a “big data, consumer insights engine that could revolutionize the way people view financial decisions.” Global Communications’s current business model appears geared to create jobs overseas – and not a small business in the U.S. or the U.K.
Gap Analysis: Global CommunicationsMark W. Schreiber, Founder, International Information CorporationJuly 10, 2007Global Communications has sold the majority of its U.S. headquarters in Washington D.C. on Wednesday, a situation that raises questions of how long this country will continue to be dominated by large companies who have all seen their market share slip. In the process, the company has lost much of its strategic credibility and may yet go the way of Verizon, Amazon and Apple, all of which control a sizable portion of market share in the U.S. market over the next decade, leaving a growing market capitalization to be found in other global industries such as energy, utilities, telecommunications and transportation.The news comes as several high tech leaders say that the country’s new telecommunications business model is doomed, as it has to adapt to evolving business trends and the changing value of a global market. Former CEO of Microsoft Terry Myerson told his own U.S. Congress committee about plans to replace the firm with a new competitor – a company that is currently valued at $32.5 billion.Myerson said that his company would create a new global competitor that was capable of providing services to the “billion dollar” market. “If you look at technology, we have the power to innovate right now and then we go through a transition to make sure that everything we do is well done and we stay on-time,” Myerson said.Myerson noted that he was not alone in this sentiment over the years. Cisco CEO Carlos Arcec joined this year in a bid to create the world’s first self-driving “smart” car by self-driving cars, the first such self-driving taxi to move forward.”We are in a race to create a system where every company in the world is working on creating a system where every company is going to be able to perform to its highest standard,” Arcec said.Arcec is seen by many as a great friend when it comes to global communication. During the Clinton Administration, he and others were known together as “the one team with the greatest global reach,” and Arcec served as Chairman and CEO for Presidents Bill Clinton, George H.W. Bush, Bill Clinton and Barack Obama.In 2001, Arcec became a vocal critic of the U.S. government and called for more transparency in government contracts. This time around, Congress is likely to block any attempt to change such contracts, but he did not end up backing away from the idea, calling his position of neutrality “very reasonable” and “probably worth giving more thought.” Arcec’s opposition to “fake information” may be partly the blame for the stock market volatility that has hit the company’s valuation this year. Since its initial public offering, Global Communications has done well selling off some of its assets but is struggling to meet targets for growth. In his report, Arcec said that the company wants to develop technology that would increase its margins in order to meet demand, so it will do so by building a “big data, consumer insights engine that could revolutionize the way people view financial decisions.” Global Communications’s current business model appears geared to create jobs overseas – and not a small business in the U.S. or the U.K.
With such dismal results Global Communications senior leadership devises a strategic plan that is quickly approved by the President and Board of Directors. The strategic plan requires they company to cut call center cost by 40%, outsourcing overseas, increase products offered, partner with satellite companies and expand globally. Senior Leadership fails to consult or communicate this plan to the Technologies Workers Union. When the Technologies Workers Union gets wind of their plans, Global Communications is faced with potential legal action and negative publicity.
Situation AnalysisIssue and Opportunity IdentificationGlobal Communications is a company at the cross roads of change. They are faced with a shift in technological advancements and competition from not only other telecommunications companies but also the cable companies have now entered the market and are able to provide a complete telecommunications solution packages. Three years ago, Global Communications stock traded at $28 per share but in today’s market they are only valued at $11 per share. The shareholders are dissatisfied with the 50% deprecation of their stocks and are speculating that the company may not be able to rebound and become a viable player in the telecommunications industry. The senior leadership team of Global Communication is under pressure to improve results so they develop an aggressive approach that would allow the company to expand globally, introduce new technology, create alliances with satellite providers and decrease their unit costs for handling calls by 40%. The company recognizes some “discrepancy between current state (the way things are) and a desired state (the way things ought to be).” (Bateman and Snell, 2004. p.9).
In order to achieve those results, Global Communications will need to move call centers overseas, eliminate and or shift positions to their expanding customer call centers and reduce salaries for those employees who remain. The plan is presented and quickly approved by the President and Board of Directors. The senior leadership team starts to work on a transition plan and realizes they have not informed the Technologies Workers Union which represents their employees. “People who have different stakes and perspectives in a decision related to the expenditure of scarce resources should have a voice in the decision process. In most cases, involving them in the process and working through the differences makes it more likely that they will be committed to the decision outcome, even if it is not the one they favor.” (Gomez-Mejia and Balkin, 2002, p. 6-7). Failure to communicate or involve the Union in the strategic plan has now placed Global Communications at risk for morale problems, decreased productivity and a non-collaborative relationship with the Union. Global Communications must overcome this critical issue in order to achieve the goals of global expansion and profitability
Stakeholder Perspectives/Ethical DilemmasThe interests of Global Communications, shareholders, Technologies Workers Union and their employees are all at risk if they do not increase their profitability and gain globalization within the telecommunications industry. Global Communications and their shareholders interests are profitability and globalization while the Union and the employees are interested in job security, compensation and benefits. The lack of common interests between all parties now has the senior leadership team facing a dilemma between