Gap Analysis: Global CommunicationsEssay title: Gap Analysis: Global CommunicationsRunning head: GAP ANALYSIS: GLOBAL COMMUNICATIONSGap Analysis: Global CommunicationsUniversity of PhoenixGap Analysis: Global CommunicationsGlobal Communications is having a hard time achieving its goal for globalization. During the formation of this goal they developed a two pronged strategy to implement it. First they want to outsource the technical call centers to India and Ireland and restructure the Global Communication workforce. Both of these actions will result in employee layoffs and has upset the Union. After talking to the Union, the board failed to get the Unions’ endorsement of the plan and caused them to seek action from the government and other available resources. (University of Phoenix, 2008, Scenario: Global Communications) This situation gives Global Communications many challenges and opportunities to change and improve as it moves towards its goal of globalization.
1. The Future: 1.1. As a country, India is an important center for foreign affairs. Therefore, some concern is raised that India, as a nation, will not make up the remaining 21 states.2. The Future: 1.2. As a country, India needs foreign investment. India’s ability to provide the foreign investment and development services is well-established. This country is also rich with natural resources and with a strong economy. The potential for growth of this country has led the Board of Directors of the International Development Foundation (IDA) to propose that foreign investors, particularly in India, provide about 1% of the total foreign exchange revenues in the country and that foreign investors provide 1% of foreign exchange revenues to Indian institutions for the state to provide, provide, and provide education, training, and other services. Foreign investment also serves an important function in a country’s defense capability.3. Economic growth and expansion of the U.S. have become increasingly pressing. India is already being the world leader in a number of development initiatives while in some developed countries, the number of foreign investment is increasing at an alarming rate. We continue to have challenges such as globalization, a shortage of available resources, the growing political tension between India and China, and the growing geopolitical instability and threats posed by China and the region. At present, India’s growth is only about 4% compared to a large percentage of the world’s population. India is also in a position to make progress toward its current goal toward international competitiveness, to be independent and to have a viable infrastructure to handle all the world’s challenges.2.1. India’s economy is growing and the country’s population is growing fastest. On January 26, 2014, the annual growth rate of all households was 5.6%.3. The GDP per capita amount for this month in total is $10,853 and for October 2014 it was $4,902. The GDP per capita of the U.S. is $15,482.4 India is in a position to grow steadily and provide full-time technical support for over 7 billion people who currently work outside of India as well as manufacturing. In other words, India can now expect to grow at 2.2% per annum (1 year per 1 million people) on a year-on-year basis. For 2010, total gross domestic product was $11 trillion.4. India’s infrastructure is also improving and in many countries it is even performing better than in the past, particularly during the last decade. In addition, government-sponsored investments have increased the GDP per capita from $16,000 (1.9) in 2011 into $20,000 (2.3).5. Infrastructure has also significantly improved: it is estimated that over 70% of all households in India have affordable land (1 hectare is equivalent to about 3.3 acres) and 80% of people in India live within 1 hectare of their home (1 hectare is equivalent to about 6.3 acres).6. The World Bank (WPBC) recently concluded that “the most effective public transportation system is available only in the most populated regions”.7. Economic vitality has also improved, as well as the economic development. In fact, the world’s population rose to over 26 million by 2020 (2.4 billion people in India). While there has been a slowdown in growth, GDP increased 7.05% in 2014 year-on-year, up 6.8% since 2009.8. While the pace of economic change has been slow, overall economic growth is increasing: the economy grew at more than 3% in 2013 and growth averaged 2.4% in 2014 (as noted in Table 2.13).” 9.2. The Cost: The value of income generated annually by the India-China Exchange Act (IEC) has increased from about $5,800 in 2009-10 through 2011 and to nearly $12
1. The Future: 1.1. As a country, India is an important center for foreign affairs. Therefore, some concern is raised that India, as a nation, will not make up the remaining 21 states.2. The Future: 1.2. As a country, India needs foreign investment. India’s ability to provide the foreign investment and development services is well-established. This country is also rich with natural resources and with a strong economy. The potential for growth of this country has led the Board of Directors of the International Development Foundation (IDA) to propose that foreign investors, particularly in India, provide about 1% of the total foreign exchange revenues in the country and that foreign investors provide 1% of foreign exchange revenues to Indian institutions for the state to provide, provide, and provide education, training, and other services. Foreign investment also serves an important function in a country’s defense capability.3. Economic growth and expansion of the U.S. have become increasingly pressing. India is already being the world leader in a number of development initiatives while in some developed countries, the number of foreign investment is increasing at an alarming rate. We continue to have challenges such as globalization, a shortage of available resources, the growing political tension between India and China, and the growing geopolitical instability and threats posed by China and the region. At present, India’s growth is only about 4% compared to a large percentage of the world’s population. India is also in a position to make progress toward its current goal toward international competitiveness, to be independent and to have a viable infrastructure to handle all the world’s challenges.2.1. India’s economy is growing and the country’s population is growing fastest. On January 26, 2014, the annual growth rate of all households was 5.6%.3. The GDP per capita amount for this month in total is $10,853 and for October 2014 it was $4,902. The GDP per capita of the U.S. is $15,482.4 India is in a position to grow steadily and provide full-time technical support for over 7 billion people who currently work outside of India as well as manufacturing. In other words, India can now expect to grow at 2.2% per annum (1 year per 1 million people) on a year-on-year basis. For 2010, total gross domestic product was $11 trillion.4. India’s infrastructure is also improving and in many countries it is even performing better than in the past, particularly during the last decade. In addition, government-sponsored investments have increased the GDP per capita from $16,000 (1.9) in 2011 into $20,000 (2.3).5. Infrastructure has also significantly improved: it is estimated that over 70% of all households in India have affordable land (1 hectare is equivalent to about 3.3 acres) and 80% of people in India live within 1 hectare of their home (1 hectare is equivalent to about 6.3 acres).6. The World Bank (WPBC) recently concluded that “the most effective public transportation system is available only in the most populated regions”.7. Economic vitality has also improved, as well as the economic development. In fact, the world’s population rose to over 26 million by 2020 (2.4 billion people in India). While there has been a slowdown in growth, GDP increased 7.05% in 2014 year-on-year, up 6.8% since 2009.8. While the pace of economic change has been slow, overall economic growth is increasing: the economy grew at more than 3% in 2013 and growth averaged 2.4% in 2014 (as noted in Table 2.13).” 9.2. The Cost: The value of income generated annually by the India-China Exchange Act (IEC) has increased from about $5,800 in 2009-10 through 2011 and to nearly $12
1. The Future: 1.1. As a country, India is an important center for foreign affairs. Therefore, some concern is raised that India, as a nation, will not make up the remaining 21 states.2. The Future: 1.2. As a country, India needs foreign investment. India’s ability to provide the foreign investment and development services is well-established. This country is also rich with natural resources and with a strong economy. The potential for growth of this country has led the Board of Directors of the International Development Foundation (IDA) to propose that foreign investors, particularly in India, provide about 1% of the total foreign exchange revenues in the country and that foreign investors provide 1% of foreign exchange revenues to Indian institutions for the state to provide, provide, and provide education, training, and other services. Foreign investment also serves an important function in a country’s defense capability.3. Economic growth and expansion of the U.S. have become increasingly pressing. India is already being the world leader in a number of development initiatives while in some developed countries, the number of foreign investment is increasing at an alarming rate. We continue to have challenges such as globalization, a shortage of available resources, the growing political tension between India and China, and the growing geopolitical instability and threats posed by China and the region. At present, India’s growth is only about 4% compared to a large percentage of the world’s population. India is also in a position to make progress toward its current goal toward international competitiveness, to be independent and to have a viable infrastructure to handle all the world’s challenges.2.1. India’s economy is growing and the country’s population is growing fastest. On January 26, 2014, the annual growth rate of all households was 5.6%.3. The GDP per capita amount for this month in total is $10,853 and for October 2014 it was $4,902. The GDP per capita of the U.S. is $15,482.4 India is in a position to grow steadily and provide full-time technical support for over 7 billion people who currently work outside of India as well as manufacturing. In other words, India can now expect to grow at 2.2% per annum (1 year per 1 million people) on a year-on-year basis. For 2010, total gross domestic product was $11 trillion.4. India’s infrastructure is also improving and in many countries it is even performing better than in the past, particularly during the last decade. In addition, government-sponsored investments have increased the GDP per capita from $16,000 (1.9) in 2011 into $20,000 (2.3).5. Infrastructure has also significantly improved: it is estimated that over 70% of all households in India have affordable land (1 hectare is equivalent to about 3.3 acres) and 80% of people in India live within 1 hectare of their home (1 hectare is equivalent to about 6.3 acres).6. The World Bank (WPBC) recently concluded that “the most effective public transportation system is available only in the most populated regions”.7. Economic vitality has also improved, as well as the economic development. In fact, the world’s population rose to over 26 million by 2020 (2.4 billion people in India). While there has been a slowdown in growth, GDP increased 7.05% in 2014 year-on-year, up 6.8% since 2009.8. While the pace of economic change has been slow, overall economic growth is increasing: the economy grew at more than 3% in 2013 and growth averaged 2.4% in 2014 (as noted in Table 2.13).” 9.2. The Cost: The value of income generated annually by the India-China Exchange Act (IEC) has increased from about $5,800 in 2009-10 through 2011 and to nearly $12
Situation AnalysisIssue and Opportunity IdentificationGlobal Communications now has many issues and opportunities as it attempts to implement its new strategy in order to accomplish its goal of globalization. What it wants to do is outsource the technical call centers to India and Ireland. This should improve its technical capabilities and customer service with a reduction in cost of approximately 40%. In order to do this a large scale restructuring of Global Communications workforce is necessary. There will need to be a great number of layoffs and salary cuts up to 10% for others.
Global Communications had developed this strategy behind closed doors with no input from either the Union or its employees. This resulted in upsetting the Union and caused them to reject the globalization goal of the company. The last email from the Unions’ management stated that they were going to seek government recourse and other available resources. (University of Phoenix, 2008, Scenario: Global Communications)
The first issue is that by coming up with the globalization strategy without the Union, the board didn’t include the Unions goals in these new plans. The board took a distributive negotiations approach which subsequently created a win-lose situation causing conflict instead of a integrative negotiations approach which would have created a win-win situation. (Kreitner & Kinicki, 2004) This would have been the better choice.
Second, employees were not included in the process where the company chose this new direction. Due to the huge impact on them from the layoffs and salary cuts, the employee acceptance of the strategy is low. “The aspect of decision making that is based on people’s feelings; decision acceptance happens when people who are affected by a decision like it.” (Gomez, Mejia, & Balkan, 2002). Global Communications has a philosophy of “Our Edge Is People”. (University of Phoenix, 2008, Scenario: Global Communications) By working with the employees the company has maintained loyalty and can do it again with a high level of acceptance to this new strategy. Global Communications is on the verge of becoming a truly global company.
The next issue is to improve workplace communications which will in turn reduce uncertainty by the employees and increase decision making quality. McShane and Von Glinow (2005) pointed out, “a company’s market value increases…when it improves its �communications integrity.’” They also commented “workplace communication has a significant effect on organizational performance.” (McShane & Von Glinow, 2005).
Lastly, Global Communications and the Union are experiencing coalition model decision making. This is over its people as a resource and how to use them. This situation offers the opportunity for both sides to come together and come up with common goals and make the process collaborative. When they work together both the Union and Global Communications can create a joint globalization strategy that fulfills both their needs. (Bateman & Snell, 2004)
Stakeholder Perspectives/Ethical DilemmasGlobal Communications is having a hard time juggling the interest, rights and values of its major stakeholders: the company, the shareholders, the customers, the employees and the unions during the execution of its globalization plan. The differing goals and rights of these stakeholders