Gap Analysis: Global Communications
The telecommunications industry has been losing customers and revenue. One of the companies included in this industry is Global Communications. Global Communication’s stock has lost more than 50% of its value, and Global Communications needs to rectify this situation. Some of the reasons for this drop in stock and revenue are due to increased competition and outdated services. Global Communications needs to look at these issues and determine what opportunities are available to turn the company around. For Global Communications to be successful the company will need to identify the correct problems that need to be dealt with to make the company profitable once again.
The situational analysis of Global Communications shows that the primary issues and opportunities being presented to them are, pressure from competitors, the company’s stock depreciation, and union employee concerns. Global Communications management team has formulated a plan to deal with the decreased revenues and return the company to a competitive entity once again.
Issue and Opportunity Identification
The strategic plan that Global Communications has developed was done so without the involvement of the union and this action has caused distrust between the union and the company. Not long ago that the union agreed to cut education and health benefits by 20%, and for the company to layout plans to outsource some of the work that union employees perform and this outsourcing will most likely cause layoffs which has caught the union by surprise. The biggest gripe that the union has is that the company did not include the union when the company was developing the plan.
If Global Communications would have used the team process, the problem between the company and the union may have been avoided. McShane & Glinow (2005) state, “Effective communication is vital to all organizations because it coordinates employees, fulfills employee needs, supports...