Essay PreviewMore ↓
Global Communications faced a difficult and arduous decision. The company is declining and a new growth strategy is ready for implementation. The growth strategy will enable Global to become more competitive and responsive to their customers. However, the implementation of the plan was not thought out clearly causing conflict and division. How can Global fix their issues? The problems Global faced were looked at and measured against the concepts presented in the cited texts.
Issue and Opportunity Identification
In the scenario downloaded from rEsource, Global Communications faced difficult times. The stock price dropped over 60% within a three year period. Stockholders were anxious and their confidence was declining. The scenario indicated there was tremendous pressure to turn around economically.
The blame was placed on the entrance of the cable companies into the telecommunications industry. Cable companies, with advanced technologies and infrastructure, were able to not only provide television entertainment, but also phone and internet access. This was something Global Communication was lacking in. Global Communication could no longer compete in customer service.
In Understanding Business, 5th Ed, Nickels and McHugh state:
Competition among business has never been greater than it is today. Some companies have found a competitive edge by focusing on making high-quality products. The goal for many companies is zero defects-no mistakes in making the product. However, simply making a quality product isn't enough to allow a company to stay competitive in world markets. Companies now have to offer quality products and outstanding service at competitive prices. That is why GM is building automotive plants in Argentina, Poland, China, and Thailand. Combining excellence with low-cost labor and minimizing distribution costs have resulted in larger markets and long-term growth for GM (pp10-11).
This is the environment Global in operating in. The cable companies have the high-quality products that are in high demand. Consequently, Global intends to capitalize on not only updating their products, but by introducing new products and services, targeting specific customer demographics, and decreasing expenses while increasing customer satisfaction.
Nickels and McHugh also state there are four factors for operating in a highly competitive environment.
First is competing by delighting the customer (Nickels and McHugh,, 1999, p.11). This is what Global intends to do by introducing their strategic alliances with satellite and wireless providers. Coupled with their new calling features, video and wireless services now make one-stop shopping for all communication needs convenient for the customer. Also, the outsourcing plan is designed to increase technical sophistication of the support personnel to provide a better experience for the customer.
How to Cite this Page
"Global Communication Gap Analysis." 123HelpMe.com. 25 May 2019
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Gap Analysis: Global Communications Global Communications faced a difficult and arduous decision. The company is declining and a new growth strategy is ready for implementation. The growth strategy will enable Global to become more competitive and responsive to their customers. However, the implementation of the plan was not thought out clearly causing conflict and division. How can Global fix their issues. The problems Global faced were looked at and measured against the concepts presented in the cited texts.... [tags: Global Communications Strategy Case Study]
1806 words (5.2 pages)
- Gap Analysis: Global Communication Andrew Haskins University of Phoenix MBA/500-Foundation of Problem-Based Learning July 19, 2007 Gap Analysis: Global Communication The year is 2004 and Global Communications is recognized as the leader in the telecommunications industry with services priced below their competitors and their stock trading at $28 per share. Now fast forward three years to 2007 and Global Communications has fallen victim to modern day progress by not keeping up with technology, lack of globalization and operational expenses at an all time high.... [tags: Business Performance]
1973 words (5.6 pages)
- Gap Analysis: Global Communications Changes in the telecommunications industry have made it a very competitive environment where only the most aggressive companies with market advantages can survive. Global Communications has suffered from this competitive environment and needs to come up with strategies to support a change to assist them in becoming profitable again. The executive management team has decided on some significant cost-cutting measures and international marketing strategies that will help them achieve profitability in the near future.... [tags: Business Analysis Management]
2182 words (6.2 pages)
- Global Communication is a company that is faced with many challenges. Within the past three years Global Communications stock values has plunged from $28 to $11 per share more than 50 percent depreciation. Recently, Global Communications reduced it employee's benefits in hoping this would be a long term growth for the company. Global Communication is struggling with competing in the telecommunication industry, but this analysis will show and prove that with the right team and dedication Global communications can bounce back and become a effective competitor in the telecommunication industry.... [tags: Business Performance]
1090 words (3.1 pages)
- Gap Analysis: Global Communications Telecommunication companies were faced with an enormous decline in profits; Global Communication implemented a forceful plan. Global Communications, is a well known company in its industry, providing exceptional services to its’ patrons and valued its’ employees the most. However, the Senior Leadership Team has constructed a competitive plan that will single out it employees best interest. Since business communication is not effective, as it should Global Communication were unsuccessful with the implementation of the plan.... [tags: Gap Analysis Business Strategy]
1420 words (4.1 pages)
- Gap Analysis: Global Communications The confidence in the entire telecommunications industry is diminishing. Stockholders are realizing diminishing returns on their investment and are having doubts about the industry?s ability to regain past levels of profitability. Telecommunications companies are experiencing losses due to high levels of competition for the consumer dollars available. Cable companies have been allowed into the market to provide a single provider solution for television, broadband internet, and two-way voice communication.... [tags: Gap Analysis Global Communications]
1718 words (4.9 pages)
- Gap Analysis: Global Communications Global Communications is company that wants to expand it’s market and broaden its horizon like any other businesses out there. Their company is starting to diminish and there is a need to do something quick about it. In the past three years, their stock has depreciated in value and there is a great deal of competition. The head of the company has come up with a plan to revive the company, but in some cases of having a business you have to loose some to win some.... [tags: Gap Analysis Business Expansion]
1991 words (5.7 pages)
- Gap Analysis: Global Communications Global Communications is a telecommunications company struggling to be successful in a competitive marketplace. In this paper, discussed are challenges that Global Communication faces, issues and opportunities, stakeholders perspectives and ethical dilemmas, and a gap analysis of the company. It is important to remain competitive, keep up with new services and technologies, and restructure the company. The Gap Analysis evaluates the ethical dilemmas that have become known in response to the restructuring plan.... [tags: Business Analysis Management]
1293 words (3.7 pages)
- Gap Analysis: Global Communications Global Communications soon came to the realization if business and profits do not increase; they are facing going out of business completely. Over a three year period with the decline in profits of more than 50% the ability for the company to rebound is being questioned. Global Communications has to take action by improving technology and expanding globally. This will result in outsourcing thousands of jobs overseas and a layoff is expected. Alluding to contractual manipulation and unethical business practices the Union has elected to pursue legal action.... [tags: Business Analysis Management]
1496 words (4.3 pages)
- Gap Analysis: Global Communications In today's telecommunication business, companies are increasingly outsourcing to improve profitability and productivity. From reading this scenario about Global Communication, several points of interest will be presented in this paper. The scenario involves a company called Global Communication and presents various business and ethical dilemmas that this company must face to continue being a competitive force in this field. This paper will discuss the initial problem that explains issues and opportunities.... [tags: Global Communications Gap Analysis Case Study]
866 words (2.5 pages)
Second is competing by meeting the needs of the community (Nickels and McHugh,, 1999, p.12). Meeting the needs of the community is addressing the concerns, wants, and needs of the stakeholders. By introducing the new products and services and decreasing costs, Global puts themselves in a position to increase value in the company by expanding the customer base, thus increasing market share. This also not only addresses the concerns of the stockholders, customers, and management, but it also provides job security for the workers.
Third is competing by restructuring and meeting the needs of the employees (Nickels and McHugh,, 1999, p.13). This is an area that Global is weak in addressing. The scenario stated that the employees and union agreed to concede approximately 20% of their benefits to assist in the cost cutting measures to keep the company viable. The management team decided to outsource anyway without involving the union, giving the perception that the worker's opinions were insignificant. Since management needed time to "spin" the information in a favorable light, much innuendo and rumor spread by the grapevine.
When Global decided the course of action, only the Board of Directors and the Executive Management had any input in the plan. Earlier, the union took wage concessions under the premise that job security would be assured. However, the decision was made to outsource the labor to save an additional 40% of the wages for the call center personnel.
This information was not disseminated in a timely manner leading to the rumor mill ar grapevine. Kreitner and Kinicki stated although the grapevine can be a source of inaccurate rumors, it functions positively as an early warning signal for organizational changes (p 541). When workers hear of changes unofficially, it causes greater confusion, since there are no checks and balances in the grapevine communication. Half-truths are spread with the same conviction and whole-truths. When the communication is not timely presented, it also sows seed of mistrust between the workers and the management, looking like there is something to hide.
These changes were made without representation of the employees' interests. From the perspective of the union, this showed a disregard for the worker. The perception was one of hostility and there was no negotiation taking place. In earlier negotiations, the union agreed to concessions as a trade off of keeping everyone employed. When the decision was made, it was very one-sided and hurt the credibility of the union rep and the company management. This is a type of distributive negotiation. Distributive negotiation usually ends up in a win-lose situation (Kreitner and Kinicki, p504).
During the course of discussing this plan with the management team, one of the senior managers brought up the problems with this plan. The CEO did not want to listen and shut him down. He capitulated and sought ways to distort the communication. Communication distortion occurs when an employee purposely modifies the content of a message, thereby reducing the accuracy (Kreitner and Kinicki, p. 543). The discussion centered on how to deemphasize the pending layoffs and building up the long term goal. There was no buy-in from the union.
Fourth is competing by concern for the natural environment (Nickels and McHugh,, 1999, p.14). Even though it was not specifically mentioned in the scenario, the natural environment provides the resources for the business to operate. Protection and conservation of these resources becomes important in the competitive market, especially when the resources are non-renewable or renewable after a great deal of time, such as crude oil and lumber. In order to remain competitive, the resources must be available when needed.
Stakeholder Perspectives/Ethical Dilemmas
Four specific stakeholders were identified, stockholders, company management team, customer base, and the represented employees. Each stakeholder has particular views which sometime conflict with one another. When these conflicts arise it may present differing ethical dilemmas.
Stockholders are looking for increased equity, return on investment, performance, and decreased liabilities. The customers demand high quality products and services, variety, and low cost. Company management desire increased profitability and revenue, increased market-share, decreased expenses and lower wages for labor. Worker's union wants higher wages, increased benefits, and job security.
These values sometimes overlap and sometimes conflict. For example, the stockholders and the management both want higher company performance and profitability, but the customer wants low cost. This conflict is generally settles in the free market by supply, demand, and competition. When the prices are stabilized and demand equals supply, equilibrium is achieved (Parkin, p. 78) and the conflict is resolved.
On the other hand, management wants low labor costs and the workers want higher wages. This conflict usually results in a negotiated settlement. The most effective settlement occurs during integrative negotiation (Kreitner and Kinicki, p. 504). During integrative negotiation, multiple parties are able to form a consensus based on compromise. This allows for better buy-in towards the outcome, even if it isn't exactly what each party wanted in total.
Each negotiation must be conducted using best business practices and within the law. Questions to ask yourself during the course of negotiation, is it legal? Is it moral? Is it ethical? Is it fair (Hynds, personal communication, 22 Jan 07).
Global Communications recently lost significant equity, value and service due to stiff competition in the telecommunications industry. Through new products, customer service, partnerships and alliances, and fiscal responsibility, Global Communications will increase market-share, close the gap, and pull ahead of their competitors. Global Communications will be an international powerhouse within the nest three years through globalization.This will regain their standing as a leader in the telecommunications industry.
Global Communications is currently in a state of decline. Revenue and stock prices are down. Competition is fierce. The cable companies are moving in on Global's core competency, plain old telephone service, but Global doesn't have the technology or capability to compete in the television market. For Global, this is an untouched market.
Within the next three years, Global Communications plans to aggressively market itself to become an international force through globalization. Part of the globalization process is outsourcing labor to countries with a cheaper workforce, without sacrificing quality. This has the added benefit of creating a presence in the foreign market with the opportunity for international expansion.
To remain competitive and regain domestic market share, Global has forged alliances with both satellite and wireless companies to expand the products and service they can offer. The satellite company provides access to the television market and broadband internet market, while the wireless provider can deliver internet access anytime and anyplace there is cell service. These services together are targeted towards the small business and residential customers, which make up the bulk of the telecommunications industry.
Locations have been selected overseas with a local national workforce costing 40% less than domestic workers. This leads to significant savings in payroll. From the monetary aspect, this makes sense. This creates a surplus within the company allowing for downsizing with the associated payroll reductions. During the post and bid process, any domestic employees retained will receive a 10% reduction in salary, saving even more. This also frees up the unneeded real estate which can be sold to generate another income stream.
However, this plan, which could succeed, has alienated the workforce due to faulty communication and stubbornness. The CEO refused to take any input from her subordinates since the plan was already put together. No other alternatives were explored. Not all the critical people were present during the decision making process.
The better serve the customer, the company, and the employee, each alternative should have been explored. Communication should have been timely and clear. Communication should also be upfront and honest. In this environment, everyone working together is the only way to succeed.
During the course of this exercise, I learned the value of considering alternate options before deciding a course of action. I think many issues could have been avoided for Global communications had each member sat down and discussed things face to face. This might not have made everyone happy, but everyone would be involved and the acceptance would have been easier. Interpersonal dynamics play a large role in the communication process.
Kreitner, R. & Kinicki,A., (2003). Organizational Behavior: Sixth Edition. New York, New York: The McGraw-Hill Companies.
Nickels, W., McHugh, J., & McHugh, S., (1999). Understanding Business: Fifth Edition. Boston, Massachusetts: Irwin/McGraw-Hill.
Parkin, M., (1998). Economics: Fourth Edition. Reading, Massachusetts: Addison Wesley Longman, Inc.