Gap Analysis: Global CommunicationsGap Analysis: Global CommunicationsRunning head: GAP ANALYSIS: GLOBAL COMMUNICATIONSGap Analysis: Global CommunicationsUniversity of PhoenixFoundations of Problem-Based LearningMBA 500July 24, 2007Gap Analysis: Global CommunicationsGlobal Communications (GC) is faced with a situation common to many industries today, increased competition and dwindling profits. GC’s stock value has fallen over 50% over the past few years. Decisions need to be made and consequences considered.
Situation AnalysisIssue and Opportunity IdentificationGC has experienced an increase in competition, an increase in consumer demand, and a drop in stock value of more than 50%.Opportunities that exist for consideration include outsourcing to foreign countries, layoffs of current employees, a change in the working relationship with the union, and the possibility of telecommuting.
Outsourcing has the advantage of a lower cost per employee. Typically the outsourced employees receive lower wages and are less likely to receive health benefits. There are security risks which must be considered. Among these risks would be the loss and/or misuse of confidential, personal information, and the theft of company processes.
Layoffs of current employees would lower the company’s current employee costs, but could have a deleterious effect on employee morale. Studies have shown that employee involvement in decision making contributes to employee morale and the remaining employees would have had this option taken away from them, (Dube, Arindrajit, Ph.D., The University of Chicago. 2003.) This could be countered by emphasizing the possibility of travel, movement to another division, and exposure to another culture. The form of communication to the employees would need to be considered to ensure accurate understanding of the message, (McShane & Glinow, 2005).
Another option that could be considered for the current employees would be telecommuting. Telecommuting would result in the lowering of cost per employee and allowing the employee more flexibility in his or her scheduling of work, (Kinicki & Kreitner, 2003). This option is particularly attractive in today’s economy. The option of working from home offers benefits ranging from lower childcare costs to lower automotive maintenance.
The union could provide more employee input and a more active role for employees in management decision making. This can improve communication between management and employees thus avoiding the communication mishap which occurred at GC. The union could become an active advocate for the employees and make suggestions that may result in the retention of jobs. They can cite studies which may dispute some of the benefits of outsourcing, (Buttleman, KR).
Stakeholder PerspectivesStakeholders with an interest in the Global Communications (GC) scenario include the stockholders, senior management, current employees, the community and the consumers. The stockholders have an interest in the value of the stock. They will want this value to rise, increasing their investment. The senior management has an interest in regaining their standing in the industry, raising the value of the stock, gaining their desired global status and retaining their positive image in the community. The current employees have an interest in job security and better communication with their senior management. The community has an interest in maintaining their employment and tax base. Finally the consumer has an interest in obtaining the best product or service for the best possible price.
Gap AnalysisA gap exists between the interests of the stakeholders and the end-state goals. Each of these interests is valid and fair. However, when senior management weighs their options they must consider the competing values. Senior management must consider the financial future of the company from the stockholders’ view, they must consider the employee’s concerns about job security, the community’s concern about the financial impact the community would experience if there was a layoff and the consumer’s perception of the value they receive for their dollar and their perception of ethics of the company. If the company fails, the employees will not have jobs, yet if the employees choose to leave, the company will falter because of perceived unfair treatment. If the company decides to lessen the employment and tax base, the
Gap Analysis
must be performed on an economic and non-statistical basis, it is not subject to political influence and hence not subject to decision by consensus. Moreover, a management team may not engage in a survey in which they evaluate the performance of the organization.
5.3.
1. The Economic Growth and Job Creation Report (EDS) – December 2013 2013
Recommendation Number 0.0 (in bold type)
The ESS is a report prepared by the S&P Global Market Leaders, which is subject to wide variety of evaluation by the S&P Global Market Leaders.
The ESS is a report for the private investment industry and is a source of data, estimates, and recommendations that will assist market participants and investors in making significant investments in the economy.
The ESS gives investors a wealth of information that will help them in the development of their portfolio. Because the ESS is a report, it is not subject to any legislative authority.
There is no legal or regulatory requirement to conduct a survey in the manner specified. In other words, the ESS does not cover the same legal and regulatory framework that we did in the year prior. However, at the same time, we strive to have a consistent analysis which considers as many variables as possible. This means that one or some of these variables that may be excluded are listed. The information collected in the ESS is used only for marketing purposes. The data in this report are derived from the industry and from reports supplied by industry companies to market participants and investors to enable comparisons which are based primarily on economic, tax and financial data as well as on information from other research and development organizations.
The ESS does not cover all of the major sectors, since the most important sector is agriculture, which is the main sector covered in the ESS.
Other sources of information in the ESS include trade, education, other market data, research, development programs, insurance and other industry business data and information on market performance such as employment statistics, cost of living forecast, quality of service of workers, capital formation and other statistics.
GAP Analysis, which is based on the ESS, is only partially included in the analysis.
6. Discussion and Recommendations
GAP Analysis is composed of three main sets of points:
a) A common view by analysts that the company should remain focused on its core business.
b) At the same time a view by analysts that future profitability is expected to remain high despite some shortfalls.
c) The view that the company is facing some “deficits” as consumers start taking the plunge, and those “deficits” are not offset by high turnover and declining margins.
d) The view that overall management in order to maintain the current leadership as a general business will be responsible for achieving the business vision goals.
e) The view that employees in the company will see significant benefits and opportunities from better business outcomes.
f) The view that employees will see good future prospects and will be impacted by changes in the business.
5.3.1 The Economic Growth and Job Creation Report (EDS) 2013
Recommendation Number 0.0 (in bold