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Gap Analysis: Global Communications

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Gap Analysis: Global Communications

Global Communications must reposition itself to remain competitive in the communications arena by considering globalization, the creation of alliances with a satellite provider which will open product options and outsourcing their business overseas. "Stockholders are bemoaning diminishing returns and speculating about the industry's ability to rebound. Understandably, telecommunications companies are under tremendous economic pressures and Global Communications is no exception." (University of Phoenix, 2004, para.1). The management of Global Communications team has responded with a plan to increase profitability and increase services.

Situation Analysis

Issue and Opportunity Identification

Increased competition is strangling the telecommunications industry. Competition is crowding Global Communications right out of the marketplace. The market is becoming oversaturated with local and international companies battling for the consumers' communication business. The business has become very cut throat. Not only are other telecommunications companies joining the bandwagon, the cable companies have thrown their hat in the ring to grab their share of the booming industry. Global Communications wants to remain a viable player in the field. Upper management has to make several strategic decisions to position the company for future growth. And now Global Communications has to create a method to stay competitive, vital and progressive in the arena. On one hand cable companies roll many options under one umbrella increasing the desire to the consumer. So Global Communications has decided to join forces with a satellite version of broadband to level the playing field. They will be able to offer all the products that cable companies have on their menus. To retain the integrity of the company, the key decision makers must implement a communication plan that will disperse the new goals to the employees.

Stakeholder Perspectives/Ethical Dilemmas

Who are the stakeholder's in Global Communications? "Stakeholder: a person or group with a direct interest, involvement, or investment in something, for example the employees, shareholders, and customers of a business concern." (Encarta Dictionary: English (North America)).

The Executive Board of Global Communications is focused on the bottom line. Their goal is to make the company profitable. Without the generation of a measurable profit, the company will not thrive. Management must commit to maintaining and creating new business which will ultimately create more jobs and job security. Their loyalty is to the survival of the business.

Always in the center, is the middle management sales force. Their future is in jeopardy as the business model shifts. Should the salespeople consider a retention bonus while accepting the pay cut? The salespeople may or may not feel an obligation to remain with Global Communications during the time of growth. They are responsible for their own families' economic protection. Success of the plan is important, yet monetary survival is a priority.

On the other end of the spectrum, the Union members reside with high expectations of job security. The new direction is difficult for them to understand the need to take work away from Americans and send it overseas to India and Ireland. They feel betrayed by the negotiation process and the fact that their recent concessions meant nothing. Discontent is brewing in the rank and file as they decide to fight back with legal action against Global Communications. How much of an obligation does upper management have to their employees? The Union believes that Global Communications is setting a precedent with their tactics.

The ultimate concern is the end user, the Global Communications customer. It is their right to receive the utmost care from their communication provider. If their needs are not met, the customer will search for other companies will a broader selection of services at an improved price. The economy works on supply and demand. The customer will migrate towards the best deal. Global Communications must realize that the customer is out for their own good and does not feel an ethical bond to any certain company.

The stock holders of Global Communications have inherent faith in the company's choices. The recent acquisition of Katrina Heinz as the Chief Executive Officer demonstrates foresight in the future globalization plans due to her experience with a European long distance provider and the European market. Stock holders believe that companies plan effectively for market trends. Global Communications must make the best economical decisions for the company as a whole.

Another key stakeholder is the companies which Global Communications has chosen to utilize for outsourcing. India and Ireland's economy is also impacted by the proposed deal. India's infrastructure is changing due to the increased amount of business it is generating with the outsourcing business.

And finally, an important player is the satellite company that will be generating increased business with the partnership with Global Communications. Their ability to increase the menu options that Global Communications offers, is the optimal solution for both parties.

End-State Vision

Global Communications will know it has made the best decisions if their business increases. The bottom line is ultimately where a company makes a profit.. With the additional services offered due to the partnership with the satellite provider, the company can compete in the local markets. The payroll costs will decrease significantly with the reduced labor costs overseas. The loss of the small business team to consumer sales will also decrease its payroll costs.

If Global Communications positions itself correctly it will have the support of their employees as well. The globalization must be seen as a win-win for all parties. The stakes are high. The loss in the short term leads to greater opportunities in the long term. More work means more jobs. A retention bonus can be applied to all employees who dig in for the long term. International travel can be offered as a reward as well. Global Communications must work diligently to repair the strained relationship with the Union. They must remember the integrity of their employees and their original corporate concept: "Our edge is our people." Sell it in.

In a year, all the operations will be set up in India and Ireland. The satellite partnership will keep the company competitive with new products. Business



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