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Gap Analysis: Global Communications

Essay by   •  May 1, 2011  •  Case Study  •  1,058 Words (5 Pages)  •  1,318 Views

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Gap Analysis: Global Communications

In order for a corporation to become truly successful, it must have a set of goals and values that are clearly communicated throughout the organization. Today, many major organizations face the challenges of maintaining their profitability in an increasingly global market, with competitors offering wider arrays of products at less expensive prices.

The same rings true with Global Communications. Once a corporate giant in the United States, they now face the reality of an increasingly competitive market with cheaper labor offerings overseas. Their challenge is to satisfy the needs and values of all involved parties, at the same time maintaining a profitable and successful business. The key to their success is to clearly communicate their goals and keep all parties equally informed of their plans.

According to Krietner and Kinicki, "a study of 2,011 employees from three organizations revealed that a climate of positive communicationÐ'--open, participative, and supportiveÐ'--was associated with employees' organizational identification" (2004, p. 3). The more that employees identify with the organization and the organization's goals, the greater the organization's retention rate and productivity.

Situation Analysis

Issue and Opportunity Identification

Global Communications had over 50 % depreciation in their stock over the last 3 years. This is due to a larger number of competitors offering a wider range of products than Global Communications.

Global Communications has opportunities to enter the international market through outsourcing their call centers to countries like Ireland and India. They also plan to grow their share of the small business and consumer market by partnering with a satellite provider to provide a wider range of services to these customers.

In order for Global Communications to achieve their new business goals, they will need to lay off the majority of their United States call center employees. Those that keep their jobs will be forced to take a 10 % pay cut and a less challenging position. To make matters more difficult, the Union has recently renegotiated their contract with Global Communications, forfeiting 20 % of their education and health benefits.

Stakeholder Perspectives/Ethical Dilemmas

There are three major stakeholders in the Global Communications dilemma: the shareholders, customers and the union / employees of GC. All three have various interests, rights and values Ð'- and some of theses issues conflict with one another.

The shareholders value profitability over responsibility. Their end goal is to maximize their value and regain their share of the market. They are entitled to a strong, profitable organization.

The customer values reliable service and reasonable pricing. They desire a broad spectrum of services and competent technical expertise from the organization's sales and support staff. They are entitled to an honest and accountable organization.

The Union values social responsibility over corporate profit. They desire job security and a reasonable benefits / salary package. They are entitled to fair treatment by their employer.

The major conflict of interest is between the values of the shareholders and of the Union. The goal of the organization should be to align itself with both values, to become both profitable and responsible in the best interest of all parties involved. A strong Union is typically seen as bad for the company (they require more benefits and take away from profitability), and a weak Union is typically seen as good for the bottom line (the weak Union requires less benefits for harder work). A proper solution would ensure that the company remains and grows its profit, while maintaining Union satisfaction and high productivity.

End-State Vision

Global Communications will become a true global corporation, with a broad spectrum of services and skilled technical support staff within a three year time frame. This will be achieved through outsourcing their call center jobs to Ireland and India, resulting in an immediate 40 % reduction in labor costs. They will grow their market share of the small business and consumer customer segment, through partnering with a satellite provider and offering a wider array of services. Global

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