Global Communication

Global Communication

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Gap Analysis: Global Communications
This paper is designed to define a problem that currently exists at Global Communications, a telecommunications company and to develop a solution, along with alternate solutions that could be used to solve the problem. Always when making business decisions for a major corporation there are opportunities in the foreseen end-state goals, as well as challenges that occur that all have to be evaluated in determining the final decision. Throughout this paper the reader will be given some background information, along with the expected opportunities and hindering challenges that all will affect Global Communications and the underlying goals that is being worked towards. Global Communications stock was being traded at $28 per share just three years ago. Presently, the company has experienced a major depreciation in stock (Global Communications, pg. 1). The number one reason behind this is the competition that currently exists. All markets have been moving in on the same business, including local, long-distance and international (Global Communications, pg. 1). On the contrary, cable companies have come into the picture putting a halt on all profits being made from each market. Global Communication had to come up with a plan to solve the issue of losing stock value. This new plan, however; has not only given GC many opportunities, but there are also challenges at hand, and not all employees, including the union workers will be happy with the overall solution that the company has made (Global Communications, pg. 6)

Situation Analysis
Issue and Opportunity Identification
One major problem is the affect that the solution had an impact on the union workers because of the conclusion that more than 20% of the education and health benefits that they once had had to be given up.

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The union had no knowledge of the anticipated changes that was occurring which created much turmoil between the union and the key players that had input in making this decision (Global Communications, pg. 3). Not that the union could have put a stop to the final decision that was made but they should have at least been informed because maybe they could have come up with a different strategy that would have delivered the same benefits, solving the problem of financial matters. Another stipulation that is included with this new change is the process of downsizing domestic call center, and giving an approximate 10 percent salary cut to the employees who will be relocated to the new call centers in India and Ireland (Global Communications, pg. 2). This decision is not going to sit well with either of the workers because everyone will be affected somehow. The most difficult challenge of all is Global’s predicament of being caught between the union and the employees. GC feels obligated to try to satisfy both but that is no easy task. Sy Rodriguez, Executive Vice President of Consumer Marketing and Sales stated that Global Communication’s “competitive advantage comes from our loyal employees” and feels as though the new strategy will indeed make the company look “inconsistent”. Moreover, with laying employees off and offering the people who transfer a 10% pay decrease will raise the challenge of keeping some current employees while impacting productivity. (Global Communications, pg. 3). People may view this strategy as being unfair and unethical and may choose not to stay at the organization because of worries of what could occur in the upcoming future. Lastly, Global Communications has to be fully aware that once the news spreads that they are downsizing, competitors will not have a problem with working towards recruiting some of the people who will be laid off (Global Communications, pg. 4). Most likely these people will gladly accept because no one wants to be without work unexpectedly. On the, other hand, of course, Global Communication had to view the opportunities when making this sound decision. One of the plans are to offer new services which will provide opportunities to exist once the strategy is implemented will give them abilities to be available in both local and long-distance markets throughout the country (Global Communication, pg. 1). GC is planning to partner with a wireless provider that will give the small business owners Internet access. Doing so will allow Global Communications to keep up with the cable companies that have contributed to their financial despair. Video services and a satellite version of broadband will also be available because of the alliances with a satellite provider that Global has recently created (Global Communication, pg. 1). Furthermore, with the ideal of transferring the technical call centers to India and Ireland, a case study proved that they would “reduce unit costs for handling calls by nearly 40% (Global Communications, pg. 2). Every organization is always looking for ways of reducing costs, so of course the scenario sounds like a winner. More importantly, the small business owners in India and Ireland are anticipating the increased “technical sophistication” and are known for their expertise and inexpensiveness (Global Communication, pg. 4). The last opportunity that exists, is the members will benefit with higher salaries and will develop more career opportunities in the future from this strategy (Global Communications, pg. 5). Despite the fact that this strategy is a downfall for many, these few opportunities led to the overall decision.

Stakeholder Perspectives/Ethical Dilemmas
Moreover, this new approach came from four key players within Global Communication who all put some effort into getting the approval from the Board. Katrina Heinz is GC’s Chief Executive Officer and she is interested in increasing “revenues and profits through more aggressive globalization” (Global Communications, pg. 1). Sy Rodriguez, the Vice President of Consumer Marketing and Sales, has the personality that has gained him respect with most of the key stakeholders (Global Communications, pg. 1). Nancy Everhardt is the Executive Vice President of Small Business and Marketing Sales and she has proved to be creative in growing small businesses by introducing innovative packages (Global Communications, pg. 1). Lastly, Joel Thompson, Executive Vice President of Human Resources and Public Relations, has been at GC longer than each of the other present players involved in this scenario. Joel has a better understanding of the business and has developed relationships with all key stakeholders, not to mention the union. Not to mention the customers and communities should have been a factor in the decision making because these are the people who make the business run on a daily basis. Once customers begin to be dissatisfied this is when a problem will definitely derive. At the same time, the vendors and suppliers of the U.S. would not be happy people because of the major lost that will be taken on their side, which in the end causes a bad reputation to develop and when it comes to business the travel of word of mouth could be detrimental to an organization no matter how large.
Although, all these people did not have input in the final decision, some of them had more compassion for the workers that would be let go and the fact that the workers transferring will be taking a salary cut. Joel wanted to know exactly what could be done to help the employees deal with the fact of losing jobs. At first, Katrina figured that just telling the workers the truth that they would just have deal with the ideal, but Joel knew it was more complicated than that. Katrina then suggested bringing in in-house career counselors who can contribute to finding new employment and options (Global Communications, pg. 4). On the other side is the union workers and among these, there is Maria Antez who is Vice President in the Technologies Workers Union (Global Communications, pg. 2). Maria is very angry with the upcoming changes because it simply makes her looks bad with her not knowing about this plan (Global Communications, pg. 5). Finally, once the announcement was made about the major change, President of the workers union, Andre Mustov, wrote a response directly to Katrina Heinz explaining the anguish the entire union possessed. He also mentioned that this was not going to be the end of this situation and the two were not into agreement with the solution (Global Communications, pg. 6).
End-State Vision/ Gap Analysis
With this, GC had to come up with some goals that would give solutions to the defined problem. The overall goal of Global Communications was to be competitive with the other competing market shares and to become a global resource. By doing so, it would somewhat bring GC back into the position that was being aimed for, to be on top again. Global Communications decided that partnering with wireless and satellite service providers they would be able to offer the services of the competition (Global Communications, pg. 1). Also, costs would be cut extremely if only outsourcing came to be an option. Moving some of the call centers to India and Ireland would give GC a reduction of 40% in unit costs for handling calls (Global Communications, pg. 2). Another factor was to improve profitability which GC felt that with all of these goals being implemented it was only one way for the business to go, and that would be an increase in the market share.

In conclusion, the telecommunications industry was faced with a very rough situation at this time with many markets competing for the same business. Global Communications also was faced with this problem and had to come up with a solution to bring their stock value back up.
Katrina Heinz, Sy Rodriguez, Nancy Everhardt, and Joel Thompson, all senior members for Global Communication put together a plan that did not include the input from any other person. With this brought in many problems from different people in the company, including members of the union. Although companies are faced with the challenge of downsizing when financial distress exists, sometimes there is just a way to go about doing things. At least take all things into consideration before making the final decision. The objective of GC was to increase profits and become a global resource, but there possibly were other alternatives in reaching those goals and maybe with input from others, a different approach could have been taken to do so. On the whole, it just goes back to being able to define the right problem and making a mistake in defining the problem will definitely lead to mistakes in the decision made.
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