Gap Analysis: Global Communications
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Gap Analysis: Global Communications
For the last three years, Global Communications has been having financial problems. With a drop of over 50% in their stock Global Communications needs to implement a new strategy in order to remain competitive in the telecommunications industry or risk losing current investors. Competition is fierce with cable companies now offering more than Plan Old Television (POT) and this is their biggest problem. Cable companies are offering service packages for television, phone, and internet service, including wireless internet. Global Communications needs to take a new strategic direction by offer a more diverse product line in order to rebound from this crisis. What Global Communications is proposing for its survival is to create a partnership with a satellite company and to outsource some call centers to India and Ireland.
This paper is going to review the situation and identify issues and opportunities, stakeholder perspectives explain the gap analysis, identify the end-state vision, and make recommendations with regard to Global Communications expansion plans.
Situation Analysis
Issue and Opportunity Identification
With the plummeting stock at Global Communications, the company knew it needed to take aggressive action in order to rescue the company from certain death.
The first issue is the lack of communication Global Communications had with all its stakeholders. The Board approved the changes for taking the company global within three years without consulting the Technologies Workers Union, which has the union representatives, Maria Antez and Andre Mustov, disgruntled with Global Communications. Maria and Andre think Global Communications did not exhaust all avenues and have insinuated that the union will take legal action if necessary. The Board also failed to mention the affects this will have on the employees. It appears that Global Communications has not notified any employees of the fact that some are facing being laid off and/or relocated and will receive a 10% decrease in salary when the call centers are outsourced to India and Ireland. With the call centers being located in Ireland and India, some clients may have a communication barrier when speaking with someone who has an accent. In addition, Global Communications has already cut the employee health and education benefits by 20%. This outsourcing move will create low morale, which will negatively affect the company and the relationship between Global Communications and the union.
Global Communications needs to explain thoroughly their new plan to all stakeholders. This new plan is to increase the services offered to Global Communications small business and consumer customer, by serving both local and long distance markets across the country. Global Communications has also collaborated with a local satellite provider to create a satellite version of broadband is collaborating with a wireless provider to give their customers remote access to the internet as well other video services and excellent customer service. This strategy is paramount for Global Communications to attract new customers and retain their current ones.
Stakeholder Perspectives/Ethical Dilemmas
The perspective of the stakeholders is as different from group to group, as from person to person. Two of the stakeholders are affected directly by each other. These are the employees and the union. The union would like to see Global Communications try alternative methods of cutting costs instead of outsourcing and layoffs. When the employees are briefed about the upcoming events, they will feel betrayed twice, by the union and by Global Communications. The employees being laid off will think the union did fight hard enough for them and their dues to the union were wasted. They will also be upset with Global Communications because they will think the executives did not value them even after these employees made a sacrifice by taking a 20% cut in health and education benefits to help cut costs and assist with the Global Communications future growth plans. They will wonder why the executive staff did not take a pay cut or down size, the executive staff since the combined salaries of the executive staff equals several employees.
The stockholders were not included in this decision making process. The stockholders have already lost money over the last three years because of the declining stock rates. After losing over 50% of their value, $28 down to $11, the stockholders certainly should have had their voices heard and their concerns addressed. Not keeping the investors informed about such major changes is not a good business practice.
One stakeholder that was involved with making this strategic decision are the Board members of Global Communications. The Board is tasked with protecting the investments of the stockholders and overseeing the future