Gap Analysis: Global Communications
University of Phoenix
Gap Analysis: Global Communications
Global Communications (GC), once heralded as a leader in the telecommunications industry, is faced with new competition in the marketplace. Over the past three years they seen their stock prices depreciate more than 50%. This decrease in share price is primarily due to increased competition in the local, long-distant and international markets by cable companies. (University of Phoenix, Scenario 2) Global Communications has issued a public statement announcing it will outsource thousands of its technical support jobs to India and Ireland in order to decrease their operating costs, thus enabling them to be more competitive in the market. This announcement instigated an internal conflict between the management at Global and the Technologies Workers Union. Secondly, they have decided to create an alliance with various providers to bring new services to their customers. This two-pronged approach, by the Global Communications top management, has created several issues while generating new opportunities that will be discussed further in this analysis.
Situation Analysis
Global Communications faces many new issues and opportunities since they implemented this two-pronged approach. Table 1 outlines the following issues. The outsourcing of thousands of jobs to Ireland and India was approved by the board in an attempt to increase revenues and decrease operating costs. GC's actions have strained the relationship between the union members and management, while tarnishing the companies "People friendly" philosophy. GC's management now has the opportunity to renew their good working relationship with the union by including them in all top level ...