Gap Analysis: Global Communications
"On Wall Street, confidence in the telecommunications industry is waning. Stockholders are bemoaning diminishing returns and speculating about the industry's ability to rebound. Understandably, telecommunications companies are under tremendous economic pressure and Global Communications is no exception. Three years ago, its stock traded at $28 per share; today, the stock is valued at $11, more than a 50 percent depreciation," (UOP, 2006). Global Communications' Senior Leadership Team proposed a plan that is sure to get the company on track and to the top of the communications industry. There were many flaws in the process that the team took in getting the proposal approved. Within this analysis, key issues and opportunities will be discussed in-depth. The plan will also have its number of conflicts along the way and these are thoroughly defined and discussed. Finally, the end-state vision of Global Communications' plan, and the analysis of the gap from now until plan success are reviewed in detail.
Situation Analysis
Issue and Opportunity Identification
Many events within Global Communications' history have lead to many issues facing the company. With these issues are opportunities for the company to grow and increase their profitability. Global Communications' Senior Leadership Team did not carefully identify the consequences of its plan to outsource, expand the company globally, and communicate with the Technologies Workers Union.
Global Communications' goal by outsourcing was to realize its growth through the introduction of new services. Those employees that will be able to be relocated to the consumer call centers will incur a 10% decrease in salary, as for the other employee...
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...hey will rise to the occasion. Through effective communication, Global Communications will have the ability to inspire their employees to articulate and clarify their ideas and positions without fear of reprimand. This will in turn improve the innovation, creativity, and forward thinking of all employees of Global Communications, to include the senior leaders. (Graves, 2006).
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Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
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Years later, the Telecommunication Act of 1996 triggered dramatic changes in the competitive landscape. SBC Communications Inc. established itself as a global communications provider by acquiring Pacific Telesis Group and becoming the new AT&T. The merger of AT& T and BellSouth, along with the ownership consolidation of Cingular Wireless and YELLOWPAGES.COM, will speed convergence, competition and continued innovation in the communications and entertainment industry, creating new solutions for consumers and businesses and positioned to lead the industry in one of its most signifi...
General Motors is knocking on the door to world class business performance. Ohmae’s five stages of global operation support General Motors aspirations. From stage one to stage five there are significant differences to becoming a global organization. For instance, stage one, states that a company supports arm’s length customer export activity by a domestic company that links up with local and distributors to function. This stage represents the entry level global corporation. General Motors is at stage 4 of Ohmae’s five stages of becoming a global corporation, because it has exemplified the following traits: Systems and tools used globally not just at headquarters, R&D, Engineering and other business operations have a global focus, and all support functions are applied globally. (MFGO 601, WK. #2 Lecture Notes) An example of Ohmae’s, stage ...
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Effective competition is widely seen as a key to the development of telecommunications services. The ability of new telecommunications networks to interconnect fairly and efficiently with existing networks is critical to the development of competition. AT&T has undergone numerous changes since its inception in the late 19th century. The McKinsey 7 S framework as applied by Pascale is recommended to manage the changes they are facing to adopt a greater competitive presence in the global economy. In conjunction with this framework, numerous other models were applied to analyse the global competitive position of AT&T. Recommendations for a revised strategy and direction for AT&T have been made throughout this document including two scenarios of how the telecommunications industry might develop towards 2000, while outlining the impact on AT&T.
Communication is the key to having a successful business. A company must be able communicate the overall plan and future goals to their employees so the employees can support the organizations goals. Global Communication's first issue was the lack of communication to the union about their need to enter international markets for the company to expand. The second issue was also a lack of communication to the union about their plans to outsource the technical call center to India and Ireland, which would in turn affect the employee's job status. They should have contacted the union president and furnished their goals to them before moving forward. This would have opened up the communication process and not left the union workers in the dark.
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We intend to exploit our leadership role by continuing to target and enter segments of the communications market that we believe will experience rapid growth or grow faster than the industry as a whole....
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