Gap Analysis: Global Communications
Global Communications provides local and long distance telephone services. This product is becoming outdated and is no longer appealing to its customers and this is proven by the reduction in the company’s stock price over the last three years.
This reduction in profit associated with such challenges as over budget in expenses, staff count and increased competition in the area that offer additional services as bundles with local and long distance telephone services. Now the senior staff is faced with these challenges and ensuring the growth of the company to continue to satisfy its debts and stakeholders.
Situation Analysis
Issue and Opportunity Identification
Currently Global Communications is facing multiple problems at this time. With the goal of increasing sales and reducing cost the senior staff is challenged to create a solution. In this search the senior staff has identified various situations. The challenges are decreased profitability, lack of innovation, decreased morale, employee relations, global expansion, reduction in cost and overhead, and relationship with the employees union.
The financial statement has shown a decrease in profitability this is proven by the drop in the stocks from $28 per share to the current value of $11 per share. This decrease is shares are due to increased competition offering same and additional services in the same market. Global Communication did not devote time and research in the past to innovation; as their competitors vision complete solutions with services for computers, televisions, and telephone services.
With the decrease in sales and loss in profitability the employee morale has decreased. The employees see the drop i ...