Global Communications - Case Study Example

Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS Gap Analysis: Global Communications Goes Here Gap Analysis: Global Communications Introduction The case study presents us with a negotiation and a communication issue for GC (Global communication). The company is in financial crisis with its share price deteriorating at a rapid rate, and the executive team is under tremendous pressure to change the image and growth of the company by entering new markets and partnerships and by introducing new services. The company also intends to do some cost cutting to compete sever competition in the market. The board has approved the team's strategic plan of outsourcing to India and Ireland to increase profit margins and avail technical expertise demanded by their customers. Information provided by Wall Street shows that there are issues in the telecommunications industry. This industry is becoming more competitive as newer companies such as cable companies enter into the market. This has brought a challenge to the existing industry leaders to find new ways to keep one step ahead of the new competition coming in. Global Communications is one company that is feeling the heat. Their stock has dropped more than 50% in the last three years, from 28% to 11%. Because of this decline the company is now looking at different ways to cut their costs, advance their technology and their expansion opportunities. The company's leadership team has created a strategic plan they feel will bring Global Communications back to the front line of the industry. They have ideas of some new products for their customers and some services that would put them on the global telecommunication map. Their plan also has cost saving opportunities to permit these ideas without impacting the company's bottom line and they will also improve the company's profitability. The plan has been presented to the Board of Directors and they approved the plan. Now the leadership team has to put the plan into action quickly to prevent the company from losing any more profits. Situation Analysis Issue and Opportunity Identification There are several issues that Global Communications need to review before they begin to implement their strategic plan. First, there are several communication gaps that exist from the leadership team to the employees and the union. Second, job and salary issues that will affect the employees when strategic plan goes into place. Another issue will be language barriers due to outsourcing to India and Ireland. The complete explanations of the company's issues are outlined on Table 1. There are also opportunities that Global Communications should focus on when implementing their strategic plan. The first opportunity is to look at the communication gaps that they have between themselves, the employees and the union. The second opportunity they need to focus on is exploring different employee retention programs as well as compensation programs. Lastly, they need to analysis their unit cost savings and expected profits by outsourcing their technical call center. The complete explanations of the company's opportunities are outlined on Table 1. Stakeholder Perspectives/Ethical Dilemmas The definition of a stakeholder is one who has a share or interest in an enterprise. Stakeholders in a company may include shareholders, directors, management, suppliers, government, employees and the community (free dictionary, 2006). Using this definition any individuals that have any type of connection with Global Communication whether they are employees, stockholders, customers, suppliers are stakeholders. These individuals could play a part of the role in implementing the company's strategic plan. The ethical dilemmas that Global Communication could face are listed on Table 2. Frame the "Right" Problem The problem statement for Global Communications so far is: Global Communication will become the world's most respected leader in the telecommunications industry by providing extraordinary customer service globally and the best high-tech products and services. This problem statement considers all stakeholders and focuses on the future success of the company. End-State Vision There are several End-State goals for Global Communications. They are: 1) Improved profits through cost saving measures, 2) Improved employee and union relationships, 3) New products and services by partnering with wireless and satellite providers, 4) Increased market share and 5) Global Communication seen as leader in the industry throughout the world. Gap Analysis The executive team is a mixture of new and old team members. The negotiation issue here is to communicate to union and employees about the outsourcing decision which would result in jobs layoffs and will also result in relocation of some jobs with lower pay rates. As Sy has said "our competitive advantage comes from our loyal employees. I'm actually more concerned about how inconsistent we're going to look when we go public with our new strategy", the successful implementation of the new strategy depends on the way, and the new strategic decision is communicated to the union and employees and cooperation from them. It also depends on what different alternatives the executive team can offer to decrease the dissatisfaction and negative response from the employees. Conclusion The whole process of solving the case study has been a learning process in its own kind. The step by step process has initiated a thorough and organized approach in solving a management problem. Further the solution has also helped to explore the change management widening the horizons of management theory. References About.com (2006). Top Ten Ways to Retain Your Great Employees. From: Susan M. Heathfield. Retrieved September 17, 2006 from http://humanresources.about.com/od/retention/a/more_retention.htm CIO.com (2003). Weighing the Benefits of Offshore Outsourcing. By: Lorraine Cosgrove Ware. Retrieved September 17, 2006 from http://www2.cio.com/research/surveyreport.cfmid=62 The Free Dictionary.com (2005). Stakeholder. Retrieved September 17, 2006 from http://financial-dictionary.thefreedictionary.com/Stakeholder Hodu.com (2006). Communicating Effectively in the Workplace: Four Essential Steps. By: Azriel Winnett. Retrieved September 17, 2006 from http://hodu.com/business-communication.shtml Table 1 Issues and Opportunities Identification Issues: Lack of Communication between Global Communications, the Union and the Employees. Opportunities: Look at the way the company is communicating with the different constituents and try to reestablish the relationships they have with their employees and the Union. Reference to Specific Course Concept: Poor communication skills by management. Steps to effective communication: 1. Attention 2. Apprehension 3. Assimilation and 4. Action (Heathfield, 2006) Issues: Employee morale is low due to possible job loss or lowering of salaries if transferred to Consumer division. Opportunities: Explore employee retention programs to help with the reduction in their pay. Restructure compensation program and reward and recognition program. Reference to Specific Course Concept: Key employee retention is critical to the long-term health and success of a business. (about.com) Lack of employee satisfaction can disrupt the employee-customer -profit chain model. Issues: Outsourcing technical call centers to India and Ireland will bring language barriers and problems with the different countries laws and regulations. Opportunities: Outsourcing to India and Ireland will reduce unit costs and lower labor costs. Reference to Specific Course Concept: Outsourcing can lower some costs however, can come with additional expenses (Ware, 2003) Table 2 Stakeholder Perspectives and Ethical Dilemmas Stakeholder: Stakeholder Groups with Competing ValuesList: Group X versus Group Y Perspectives: The Interests, Rights, and Values of Each Group Ethical Dilemmas: The Ethical Dilemma Based on the Competing Values Stakeholder: Global Communications versus Employees Perspectives: Employees have the right to know what direction the company is going in. They also have the right to know about the massive layoffs and if they were to stay with the company and work in the consumer dept. then they would get a 10% pay cut. The company has the right to make decisions they need to do continue to be successful. Ethical Dilemmas: The ethical dilemma is sacrificing the employee's loyalty to the company to make a profit and stay in business. Even though there might be new jobs forthcoming they will be at a lower salary. Stakeholder: Global Communications versus Customers Perspectives: Customers are looking to have a product that is top notch at the lowest possible price. The main goal for Global Communications is to make a profit and grow the company into the future. Ethical Dilemmas: The ethical dilemma is that in order for Global Communications to make a profit, its quality will be affected. If they were to have the best quality then their company growth would be minimized. Stakeholder: Global Communications versus The Union Perspectives: The union's job is to protect the employees. Global Communications left the union out of the loop so they didn't have any say in what was going to happen. The union was put into a position to accept what Global Communications changes were going to be without any advance notice. Ethical Dilemmas: The ethical dilemma is that the union has no say as to how to handle the situation. Since they are in place to protect the employees it will hinder the relationship the company has with them. Global Communications can face legal actions with the Union for not adhering to their contract as well as losing a good relationship that they had with them. Table 3 End-State Goals 1. Improved profits through cost cutting measures 2. Improved Employee and union relationships. 3. New products and services by partnering with wireless and satellite providers. 4. Increased market share 5. Global Communication seen as leader in the industry throughout the world. Read More