Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS

Gap Analysis: Global Communications
Elayne Limon
August 28, 2011
University of Phoenix

Gap Analysis: Global Communications The telecommunication industry is struggling, and Global Communications is no exception (University of Phoenix, 2011). The company has recently experienced a stock depreciation of more than 50%, from $28 per share down to $11 per share. The company has decided to make major changes in order to compete with other providers and begin to see profits. Some of these changes are being challenged by the union representative, as the union members are unhappy about the recent compromise to give up major benefits, and now they are facing layoffs. The decisions that Global Communications is making are seen as unethical, but something has to be done so the company can cut cost, make a profit, and begin to globalize.
Situation Analysis
Issue and Opportunity Identification “Telecommunication companies are under tremendous economic pressure” (University of Phoenix, 2011). The Stock for Global Communications has lost value of more than 50%, and to rectify the problem the company must create new products and services. This means a new partnership with a satellite company that will allow competition with the local telephone and cable companies. New services offered will include “video services as well as a satellite version of broadband” (University of Phoenix, 2011). Competition among the local, long-distance, and international markets is obvious (University of Phoenix, 2011). The Senior Leadership Team at Global communication created a plan to expand and globalize the company. The strategic goal of the plan is to create new business by serving customers in both local and long distance markets across the country. Global Communications will open up new call centers in India and Ireland. This will help the company cut costs and create profitability; however, with the implementation of this plan ethical issues will arise. The opening of the new call centers will require that current employees either be let go or relocated with the expectation of a pay cut. The union members recently made an agreement to give up major benefits for the long term growth of the company. Now jobs are being taken from these members and given to individuals in India and Ireland. This move is considered “…unethical, a ploy to manipulate around the current contract conditions” (University of Phoenix, 2011). The Vice President of Human Resources for Global Communications stated, “…without this strategy, Global will not survive the changes in the telecommunications industry” (University of Phoenix, 2011).
Stakeholder Perspectives/Ethical Dilemmas Over the last few years Global Communications has experienced a 50% decrease in its stock. Competition has been the primary cause of this unfortunate loss. Global Communications must devise and implement a plan for the company to save money, grow, and get their stock back up to where it once was. “Confidence in the telecommunications industry is waning. Stockholders are bemoaning diminishing returns and speculating about the industry’s ability to rebound” (University of Phoenix, 2011). The company is under pressure to become a fierce competitor within the industry, while profiting from its products and services. The Senior Leadership Team will soon implement a plan to compete in local markets and take the company global. There is concern in the way Global Communication is conducting business. The company has a made a decision to outsource their business to India and Ireland. Doing so will help the company compete in local markets and step up globalization (University of Phoenix, 2011). This decision was made without consulting the union representative, which has caused turmoil between the union and Global Communications. Not including the union representative in the decision-making process was a poor decision on the company’s part. “The Union has spoken out against the strategy. Global should look at the Union as a partner, before making this move, all avenues should have been exhausted. Hiring foreigners to do Union jobs is not the answer” (University of Phoenix, 2011). The union members have already made several compromises with Global Communications for the long term growth of the company and in an effort to help the company become profitable. The president of the workers union stated, “This strategy and your outsourcing approach will set a precedent for the whole industry. We cannot and will not go along with this situation quietly” (University of Phoenix, 2011). End-State Vision After successfully implementing its strategic plan, Global Communications has become a leader in the telecommunications industry. The partnership with the satellite company was a success; Global Communications now offer services that can compete with the local telephone and cable companies, and customers choose to use Global Communications over other service providers. The company stock has doubled, and shareholders are more confident, not only in the company, but in the industry as a whole that they will continue to offer competitive products and services. Global Communications has been able to rebuild the relationship with the union. They renegotiated a new contract that included the major benefits that were lost when the company was struggling, and included other great benefits as well. Global Communication has also re-opened the call center that was closed due to the company’s financial situation; which provided jobs for individuals that were affected during the layoffs. Due to the newly re-established relationship with the union, Global Communications is making every effort to include the union representative when making any decisions involving the workers. Although not everyone agreed on the decision that Global Communications made during its financial process, they proved that it was the right decision to make. Decision-making requires the use of the nine-step model so businesses can make sure they have the best solutions to problems they may be facing. De Janasz explains that good solutions take time and effort (2002, p. 391). Good solutions also require the use of ethics. “It’s critical for everyone in every company to explore ethics on a regular basis, making the topic part of an organization’s standards and culture and establishing a firm understanding of what’s acceptable and what’s not” (Fetrow, 2003, p. 3). Gap Analysis Global Communications would like to take their products and services global and become a leader in the telecommunications industry. They have made the first step by implementing their new plan. This plan will create a relationship that will allow the company to create new products and services to offer their customers, locally and internationally. The broken relationship between the union and the company must be fixed so the employees can trust in their employer. They should not fear future miscommunication, layoffs, or a reduction in current benefits. The company needs to recover from its financial crisis and in order to do so major ethical decisions must be made; however, Global Communications must communicate and include the union representative before making any changes that will affect the union workers. Achieving these goals will enable the company to meet its goals and become a leader within its industry.

Conclusion Global Communications made necessary decisions in order for the company to grow and expand. The Senior Leadership Team made a decision and stuck to it. By doing so they were able to become a leader in the telecommunications industry. Implementing their controversial strategic plan was the best thing the company could have done. Although, at first, the decision to outsource jobs was rough one, they made it through. Global Communications was able to save money, create new products and services, create new employment opportunities, and rectify the relationship with the union and its members.

References
De Janasz, S. (2002). Interpersonal skills in organizations. New York: McGraw-Hill
Fetrow, V. (2003). Ethics is Good Business, 97((2), 54. Retrieved fromEBSCOhost.
University of Phoenix. (2011). Problem Solving Based Scenarios: An Approach to Identify Opportunities to Create Value for the Business. Retrieved from University of Phoenix, MMPBL 500 website.
University of Phoenix. (2011). SENARIO: GLOBAL COMMUNICATION. Retrieved from University of Phoenix, MMPBL 500 website.

Table 1
Issue and Opportunity Identification
|Issue |Opportunity |Reference to Specific |Concept |
| | |Course Concept | |
| | |(Include citation) | |
| | | | |
|Telecommunication companies are under tremendous |To create new business for the |“Growth through the |Competition |
|economic pressure. Local, long-distance, and |company by serving customers in|introduction of new products | |
|international markets are all competing for the same |both local and long distance |and services, and a | |
|business. Global Communication has partnered with a |markets across the country. |partnership with a satellite | |
|satellite provider in order to compete with the local| |provider to offer video | |
|telephone and cable companies. | |services as well as a | |
| | |satellite version of | |
| | |broadband” (University of | |
| | |Phoenix, 2010). | |
|Competition is the main factor of outsourcing. Global|Expand the company into other |“Downsizing our domestic call|Outsourcing |
|Communications is under major financial pressure and |local markets globally. Moving |centers has major | |
|the company must grow and improve profitability. |call centers to other countries|implications. Although some | |
|However, this means taking jobs away from the union |will help the company reduce |of our current call center | |
|employees. |costs and create profitability.|reps can be relocated to our | |
| | |expanding consumer call | |
| | |centers, many will be let go.| |
| | |Those who are relocated will | |
| | |be expected to take an | |
| | |average 10 percent salary | |
| | |cut, since consumer centers | |
| | |operate on a leaner budget | |
| | |than the small business | |
| | |centers” (University of | |
| | |Phoenix, 2010). | |
| | | | |
| | | | |
| | | | |
|The union has a contract and outsourcing jobs could |With the outsourcing of |First, benefits are taken |Ethical Dilemma |
|be considered a breach of contract. Global |thousands of jobs, some |away from union members. “Now| |
|Communications has already promised union growth with|employees will be relocated, |you take away jobs and give | |
|the last agreement that was made; where union members|and some will be placed in |them to people in India and | |
|gave up major benefits for the long term growth of |other positions within the |Ireland. We are not seeing | |
|the company. With this new plan, current employees |company. The Vice President of |the benefit there. | |
|will either be let go or relocated and expected to |Human Resources for Global |Headquarters is calling this | |
|take a pay cut. |Communications stated, “Global |move unethical, a ploy to | |
| |is committed to maintaining -- |manipulate around the current| |
| |and in the future, creating -- |contract conditions” | |
| |as many jobs as possible, but |(University of Phoenix, | |
| |without this strategy, Global |2010). | |
| |will not survive the changes in| | |
| |the telecommunications | | |
| |industry” (University of | | |
| |Phoenix, 2010). | | |
| | | | |
| | | | |

Table 2
Stakeholder Perspectives
|Stakeholder Perspectives |
| | |
|Stakeholder Groups |The Interests, Rights, and |
| |Values of Each Group |
|Stockholders/Investors |These individuals hold stock in the company. The fact that the stock has |
| |gone from $28 to $11 has to be bothersome. |
|Union members |These individuals have an agreement with Global Communications. Now the |
| |members face salary cuts and job loss. They recently agreed to give up |
| |major benefits for the company’s long term growth; and now, to benefit the|
| |company, they made a decision to outsource many jobs. |
|Global Communications |Stock for the company has fallen from $28 to $11. Global Communications |
| |must devise an aggressive approach for the growth of the company. The |
| |Senior Leadership Team will soon implement a plan to compete in local |
| |markets and take the company global. They did this without consulting the |
| |union representative. |

Table 3
End State Goals
|End-State Goals |
|Global Communications should be able to successfully implement its strategic plan to become a leader in the telecommunications industry. |
|Global Communications should take necessary steps to rebuild the relationship between the company and the union. |
|Global Communications will continue to explore all possible solutions to a problem and make good ethical decisions. |