Problem Solution: Global Communications
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Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS
Gap Analysis: Global Communications
November 2, 2007
University of Phoenix
Professor John Craddock
Gap Analysis: Global Communications
Global Communications stocks are down over 50 percent. Wall Streets confidence in the telecommunication industry is diminishing and the Stockholders are up in arms on how the industry will recover. The telecommunications industry has faced significant changes in the last three years. Too much competition by the cable companies who moved in providing complete solution packages containing computers, televisions, and telephone services. In an attempt to increase profitability, the companys leadership team has developed an aggressive two-pronged approach. First, they plan to improve revenue by introducing new services to small business and consumer markets including local and long-distance phone service across the country. In addition, they have partnered with a satellite provider to now offer video services, satellite broadband, wireless Internet, telephone and PC cards. Second, the company plans to improve profitability by cutting costs and marketing more aggressively on an international level. This paper will discuss the issues and opportunities that Global Communications will need to address in order to reach their solution. In reaching their end objective they will face scrutiny on the layoffs they will be implementing and the relocation of their center overseas. Yet, they will discover how they can make this transition go smoothly while keeping current employee morale high and getting the business back on its feet.
Issue and Opportunity Identification
Albert Einstein said it best when he said, “The significant problems we face cannot be solved at the same level of thinking we were at when we created them.” Global Communications (GC) is facing two sets of issues. After going through The Problem Solving Process it is clear that the right problem they are facing is the price of the stock. With GCs stock dropping from $28 per share to $11 per share they are riding tough times and have to find a way to rebound and become a leader in the industry. Their opportunity lies in developing a plan that will make them an innovative market leader by differentiating their products and services from their competition. Their first step is to make the decision to go international to broaden their market. The next step was to partner with a satellite provider to be able to offer more products and attract the small business and consumer customers.
Another issue the company faces is the fact that in order to increase their revenue they have to implement layoffs and job relocations while transferring their services to Ireland and India. While cutbacks are never easy, this goes a step beyond because the company prides themselves on treating their employees very well only to have now made them jobless. In addition to the strife with the layoffs, GC also has to face the Union. The employees are part of Technologies Workers Union and GC management failed to get them involved until the last minute. The opportunity now arises for GC and the Union to work together to develop a win/win solution for both the stockholders and the employees. The solution will articulate the facts of the situation so employees understand what is causing the change allowing them to prepare for their future. This, will in turn, make the transition less stressful and reduce the likelihood of employee morale diminishing. With employee morale staying afloat this will give GC a chance to make a smooth transition into a new era and keep their current customers content.
Stakeholder Perspectives/Ethical Dilemmas
At the end of the day this is about financial prosperity. Wall Street and the Stockholders do not care what changes take place as long as the company starts moving in the positive direction and there are financial gains.
The Union is more concerned with the loss of business. There was talk that their membership would grow which would mean more dues and financial gain for them. In reality that is not going to happen and the company will outsource which means the union will take a hit as well.
The company has a commitment to their investors, which means they have to start making significant changes. In the end it does not matter who takes the hit as long as they are making headway. They have dedicated employees and have a history of treating their employees well so they face the ethical dilemma of losing their integrity in their industry. In addition, they did not take the proper steps to incorporate the union into the planning process causing additional strife.
The final stakeholders are the employees. They helped build the company that is about to let them go. They recently took a decrease in benefits to help support the changes that were necessary get the company back on track only to find out it was not enough. GC has treated them exceptionally well in the past, and they have a reputation for giving their employees credit for the competitive advantage their company has had. So now the employee loyalty and trust will be tarnished which in turn may lead to negative employee morale.
Step three of The Problem Solving Process states that we have to describe the end state and goals. What does good look like? At the end of the day, when all is said and done, what will be the end-state vision for Global Communications? Once all the layoffs are complete and they have moved their services overseas, Global Communication will discover that they were able to reduce unit costs for call handling by 50%. This will then allow them to hit international advertising harder. In turn their customer base will double over three years causing their stock prices to reach $65 per share. Since business is increasing they will also be able to take some of the profit and invest in more modern technology, which will keep them ahead of the curve and the top of their industry.
Global Communications has devised a plan to make the company more profitable and potentially increase their