Gap Analysis: Global Communications

Gap Analysis: Global Communications

With the onslaught of competition in the telecommunication industry, Global Communications has come under tremendous economic pressure. Over a three-year period, stockholders have seen a steep decline in their investments and are now questioning the ability of the company's ability to rebound. "Local, long-distance and international markets are all competing for the same business but the industry suffered a huge blow at the hands of the cable companies, who stepped in to provide complete solutions encompassing computers, televisions and telephone service" (University of Phoenix, 2006).

A public announcement of Global Communications' plan to outsource thousands of its technical support jobs overseas and expected layoffs created tension between Global and the Union representing many of those affected.

This analysis looks at Global Communications' current situation, issues and opportunities and the stakeholders perspective. This analysis concludes with the considerations of the desired end-state vision, the current situation, and the course concepts.

Situation Analysis

Issue and Opportunity Identification

Global Communication has come to realize what all in the telecommunications industry have been facing: tremendous economic pressure, caused by too much competition, is wreaking havoc on their ability to remain solvent. As it struggles to remain competitive a new strategy has been devised to reverse the more than 50 percent decline in stock value over the past three years, thereby settling the concerns of stockholders, who are bemoaning diminishing returns and speculating about the industry's ability to rebound. The plan includes the introduction of new services, primarily to its small business and consumer customers, and creating an alliance with a satellite provider and a partnership with a wireless provider.

Additionally, cost-cutting measures have been identified in the hopes of improving profitability. Global Communications will market itself more aggressively on an international level with an end goal of becoming a truly global resource within three years. To realize such an ambitious plan, a senior leadership team has concluded that layoffs and salary cuts are necessary in addition to outsourcing many jobs by establishing call centers in India and Ireland. The overseas call centers will reduce unit costs for handling calls by nearly 40% and offer customers increased technical sophistication.

The senior leadership team, led by a newly hire CEO, planned to initiate the new strategy without first consulting with the Technologies Workers Union, the group most severely affected by the changes.

Stakeholder Perspectives/Ethical Dilemmas

Four groups are identified as major stakeholders: stockholders, the senior leadership team, customers and the Technologies Workers Union.