Gap Analysis: Global Communications
In a world of ever increasing competition, companies are forced to look for new ways to generate value.
The following analysis of Global Communications will identify issues, opportunities and ethical dilemmas faced by the stakeholders. Additionally this analysis will compare actual performance with potential performance, presenting perspective of they are today and where the company wants to be in the telecommunication industry.
Situation Analysis
Issue and Opportunity Identification
Global Communications is facing a number of issues. First, Global Communications, like many businesses, is facing many challenges, such as capitalizing on opportunities; successfully tackling competition; profitability; and growth within the industry. Telecommunications is vital to conducting business in terms of transmitting vast amounts of data in just seconds through wire and wireless devices, cable, and satellite.
Secondly, although telecommunications services are converging rapidly, Global Communications is competing to occupy the same space and win the same customers. As the company continues to evolve within the competitive industry, the company’s stakeholders are complaining and worried about the company’s financial state after 50% depreciation in returns, and their ability to recover from changes necessary to maintain in the industry.
Finally, Global communications has been known for their philosophy “Our Edge Is People” however, because of the last negotiations with Technologies Workers Union resulting in major benefit reductions. The Union has cited the new strategic plan as unethical and a ploy to manipulate the current contract. Furthermore, the union is taking action through government and other resources.
Global Communications must grow and expand their services in order to compete with other companies. Although, they choose to outsource, efficient leader-follower communication is vital because it’s essential that employees have a clear understanding of what changes are happening, why these changes are necessary, and what the future goals and vision are for Global Communications as a whole, thus creating an opportunity to regain employee loyalty, trust and company’s philosophy “Our Edge Is People.”
Stakeholder Perspectives/Ethical Dilemmas
Conceivably to most, the one who has funded the business venture maybe considered the most important stakeholder, workers, unions and managers are without question just as important entity in the growth and stability of the company.
Workers have the most to gain and lose, their interests and concerns should take precedence over the interests and concerns of other stakeholders. Interests to workers include job security, future employability, pension, or medical benefits.
Unions may take an active role in protecting the interests of workers. Because a union often serves as a source of information and influence on members, the union is an active stakeholder.
Ethics and the Unions - Part 1. Industrial Workers of the World. (n.d.). Retrieved from http://www.iww.org/en/history/library/Dolgoff/newbeginning/1
Global Communications needed to go global to try increasing profits. A new study that Duke University is challenging the belief that the common reason companies go to China and India are because of the lower salaries. (Mary Hayes Weier). Studies that outsourcing creates U.S. job (MSN Money Staff). If that’s the case, then Global Communications could create more jobs here in the United States.
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.
There has been an increasing demand of telecommunication services in the last few decades which has led to an all time high demand of global operations in businesses , their capital investment as well as mobilization of the resources. This has further resulted in a lot of changes in the lifestyle of the people within specific geographies that includes an increasing demand for the latest of technology as well.
Workers are the most important aspect in the business world because no business can function without their employees. In return, employers should fulfill their workers needs and in order to negotiate the workers demands, they need a certain sort of representation who can negotiate with the employers and their fellow workers. The representation that every worker asked for was fleshed out by the creation of labor unions. Labor unions b...
The events that led to the changes Global Communications are making came about with the shift in technology and the competition within the telecommunications industry. With companies able to compete globally, there is too much competition within the industry from other telecommunications companies as well as cable companies who can offer all the same services. With increased companies offering a wide range of services, Global is forced to cut costs in order to compete effectively and increase profitability. To this end, Global Communications senior management has come up with an approach to outsource some of their call centers to India and Ireland and expand new services to small business and consumer customers. Global also joined with a satellite provider to offer video services and a satellite version of broadband. This will mean job cuts and a reduction in salary for employees who remain and are relocated. The plan was accepted quickly and now management is under the gun to communicate the changes effectively to the employees without risking a morale problem that could affect productivity. Also, since the employees belong to a trade union and the union was not involved in the process of negotiating these changes, Global has to consider the legal and public relation implications of not fulfilling their contractual obligation to the trade union.
The following report will analyse Vodafone and their current position in the international market. This report will cover the competitive strategy of Vodafone and their influence of products and services in relation to the demand of the market.
Global Communications is a financially struggling telecommunications company. Its stock has depreciated fifty percent in three years. Currently, the organization is faced with too much competition within the telecommunications industry. Local, long-distance and international markets are all competing for the same business. In addition, the industry suffered a huge blow at the hands of the cable companies, who stepped in to provide complete solutions encompassing computers, televisions and plain old telephone service (POT).
...omers and the employees in which you hire. The union is key because Ford is a union workforce and that means the union will say whether or not it is safe working conditions. The last group is organizational stakeholder and this is also important because without the employees, manager, and non-managers the company will not be successful as it is now.
For some, the organisation’s finances will be the most important. For others, innovation and leadership will take greater priority. And for others still, an ethical approach to business will top the list. These needs and expectations will depend entirely on the perspective of the stakeholder groups involved and the needs of internal stakeholders differ to those of external stakeholders. Primary stakeholders are those who have a direct interest in an organisation and secondary stakeholders are those who have an indirect interest. Internal stakeholders are within the organisation such as employees, departments, Chief Executive and external are groups, businesses or people who are not directly working within the organisation but are still affected by decisions made by the
Trade Unions – they want to protect the rights of the employees in a business
Unions allow the workers to ask for their rights as employees. Unions can enforce job security standard in a relatively fast and inexpensive forum. Unions can contest disparate treat...
This report will cover the challenges of business communication in a global work environment. The following information will be used to formulate this report:
University of Memphis, . (1990).Communications networks for managing global operations. (global business). Retrieved from http://www.entrepreneur.com/tradejournals/article/9267862.html