Gap_Analysis_Global_Communications

Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS Gap Analysis: Global Communications Shanetta L. Ashwood University of Phoenix Gap Analysis: Global Communications Global Communications, a once leader in the telecommunications industry, has taken a drastic turn for the worse. The stock, which once traded on Wall Street at $28 per share, has dropped more than fifty percent to $11 per share in the last three years. The company, who prided themselves on their relationship with “the people,” is now facing a situation where the union workers are attempting to put a stop to their globalization plans. Its competitors in this new highly competitive industry are edging out the company who was once a leader. Global Communications has a newly renovated senior leadership team. With this team, GC has developed a firm plan on how to remain competitive, cut costs, and create new innovations in the telecommunications field. Unfortunately, GC’s senior leadership has not thought of everything. The plan’s impact on its employees will be devastating. The image with the public may take a hit. The stakeholders’ trust of the company may be in question. Global Communications has a bit more research to do before going full steam ahead with this plan. Situation Analysis Issue and Opportunity Identification Global Communications has set still as the telecommunications field has taken off in a growing directing. While companies are offering satellite services and new features in their local and long distance, GC has remained stagnant. The cable companies are offering “bundle deals,” in which a customer is able to receive his or her cable, Internet and phone service at a discounted rate, all lumped into one bill. Consumers love these types of promotions. Unfortunately, these are the types of promotions that are making it hard for GC to stay afloat. These types of promotions have caused a decrease in stocks of over 50% for Global Communications in the last three years. Global Communications has created an image with the public as the company whose, “…edge is people”. In the past, GC has held a strong relationship with the Technologies Workers Union. Recently, they went through labor negotiations. In these negotiations, the union made concessions, which cut both health benefits and educational assistance benefits. These cuts did not taint their relationship with the union because during these negotiations, the union was included. The new issue with globalization has come up because the union was not included in the plans going on until they were already approved. The lack of communication between the senior management team and the Technologies Workers Union leadership was not present and therefore has caused a gap in the focus of the company. This lack of communication between the union and the senior leadership team is beginning to create an unhappy workforce. They believe they are unable to trust the new leadership team. “With an unhappy workforce, you have nothing and you will never be great” (McShane & Glinow, 2005). To maintain the company – union relationship they have had in the past, they must figure out how to create a win-win situation, involving the union leadership team. If Global Communications senior leadership team cannot do this, they may have a problem knocking at the front door. Stakeholder Perspectives/Ethical Dilemmas Global Communications has several stakeholders involved and interested in the ending resolution of this company. Three stakeholders in particular are, the senior leadership team, Technologies Workers Union, and any person who owns share of stock within Global Communications. Although these stakeholders have GC’s financial interest in mind, there are different perspectives and opinions of these three groups of people. The senior leadership team of Global Communications is interested in creating profits, cutting costs and increasing technology to stay competitive. In reaching these goals, there are major decisions that must be made. One of the cost cutting decisions involve lay-offs and possible pay reductions. This is something that completely goes against what the perspective of the Technologies Workers Union is looking for. From their perspective as stakeholders, they want to ensure the job security of their workers. Of course, they want the company to be profitably, however they are looking for a win-win situation for all parties involved. They are looking to maintain and create jobs, not continue to make concessions, pay cuts, and lose jobs. Last, you have your common stockholders. Most of them are in it for the money. They are looking at the bottom line results. They want to see their shares increase from $11 per share back to $28 per share and beyond. The stockholders want to see what new innovations Global Communications can come up with, to remain competitive and keep their investment growing. The issue is, all three of these stakeholders want the same end goal; the means of getting there are conflicting. Ethically, the labor union should have been involved in the discussions about the globalization plan from day one. Because this did not happen, two of the three stakeholders are not “seeing eye to eye” on the best business action for the company. If they are not on one accord, then the common stockholders will begin to be uneasy about their dealings with Global Communications. End-State Vision Global Communications will provide newly innovative services to the telecommunications industry. This will be possible by creating an alliance with a satellite provider and a partnership with a wireless provider. Doing this will give GC the opportunity to compete in this growing market by tying in broadband, Internet, and wireless services into their business. Global Communications will increase stock value. GC will do this by taking its business to an international level. They will use its global resources to connect to parts of the world they have not been able to connect to in the past. They have found ways to cut costs, improve technology, and improve profitability all at a consistent rate. When this plan unfolds and becomes successful, stock value is expected to increase back to its prior status of at least $28 per share. Global Communications will repair the company – union partnership. GC will make the union leadership a part of all future decisions regarding this globalization project. They will take into consideration the concerns of the union and try to create an optimum solution that will work for both sides. Global Communications wants to keep their image of, “Our Edge is Our People.” In keeping the labor union leadership involved in what is going on, GC will have no problem creating an environment in which the company and union are on one accord once again. Gap Analysis Global Communications will be the leader in the telecommunications industry by increasing his or her technology, consumer support, and stock value. Global Communications has not positioned itself in the telecommunications industry in a way that they can keep up with the growing competition. Global Communications will become a more profitable company by forming alliances with satellite and wireless providers.  Doing this will help Global Communications be able to compete with the cable companies who are offering "bundle deals." They will be able to save money by moving customer service jobs out of the country and by requiring pay reductions from all employees.  This may be a drastic step at first; however it will prove to be a step in the right direction for the profitability of the company.  This also will increase Global Communication's presence internationally.  Both the new technological innovations and international presence will provide the company with a more competitive edge than they have today.  The end goal is to raise the market share price for GC above and beyond the existing share price of $11 per share.  Right now, GC has the opportunity to re-gain the trust of the union.  They have disclosed all the GC globalization plans to the union and the press. Although the union is unhappy, GC’s senior leadership team hopes they will be able to keep the company – union relationship in harmony. Now is the time to close the gap between management and the union. Now is the time for “active listening”. “Poor communication between employees and management also was cited as a primary cause of employee discontent” (Kreitner & Kinicki, 2004). By listening to what the union has to say, and trying to create the most reasonable solution for all parties involved, the management team should be able to reach its technological goals and keep the high morale of the union. They will be able to work as a union/non-union company all working toward the same goal.  Being able to keep up with the competition in this very competitive market is key; with these strategies GC will be in the right position. Conclusion Global Communications has fallen from one of the top companies in the telecommunications industry, to a company who is struggling to keep its profit shares above water. With the new faces and new ideas in the senior management team, they have developed a plan to pull the company back together. This plan encompasses everything from customer service, new technology, and globalization. This plan is just what the company needs to remain competitive in this growing market. The company cannot forget however, that they will need the support from their labor union as well. Unfortunately, throughout the negotiations, the senior management team did not deem it necessary for the union leadership to be involved. Now is the time to turn this around. With the union involved in the discussions and the new technologies to come, Global Communications can again be a world leader in the telecommunications industry. References Kreitner, R., & Kinicki, A. (2004). Organizational behavior: Organizational communication in the internet age. McShane, S. L., & Von Glinow, M. (2005). Organizational behavior: Emerging realities for the workplace revolution. Table 1 Issue and Opportunity Identification |Issue |Opportunity |Reference to Specific |Concept | | | |Course Concept | | | | |(Include citation) | | |Global Communications has not positioned itself in |Global Communications can |“It is a lot easier to |Opportunity Realization | |the telecommunications industry in a way that they |solve this problem by |identify the problems or | | |are able to keep up with the growing competition. |developing new technology and |challenges in any | | | |new ways to increase customer |situation than it is to | | | |service. |identify the | | | | |opportunities”. (Maul, | | | | |J.) | | |Global Communications did not have effective |Global Communications can meet|“Communication refers to |Communication | |communication while presenting their globalization |with the union leadership to |the process by which | | |plan to the union. |include them on negotiations |information is | | | |and deals before they go ahead|transmitted and | | | |with the approved deal. |understood between two or| | | | |more people.” (McShane & | | | | |Glinow, 2005) | | |Global Communications has put itself in a position |Global Communications can |“With an unhappy |Exit-voice-loyalty-neglec| |where they are creating a job environment for |develop a way to continue to |workforce, you have |t (EVLN) model. | |un-motivated workers. |pursue its technological |nothing and you will | | | |advancements, while creating a|never be great.” (McShane| | | |win-win situation for the |& Glinow, 2005) | | | |union employees. | | | | | | | | | | | | | Table 2 Stakeholder Perspectives |Stakeholder Perspectives | | | | |Stakeholder Groups |The Interests, Rights, and | | |Values of Each Group | |The Senior Leadership Team |Interest of increasing the profitability of the company at all cost. | |Technologies Workers Union |Interest of ensuring the union employees are employed and have a fair | | |benefit package. | |Stockholders |Interest is to collect returns on their investment. | Table 3 End State Goals |End-State Goals | |Global Communications will provide newly innovative service to the telecommunications industry. | | | |Global Communications will increase stock value. | | | |Global Communications will repair the company-union partnership. |