Gap Analysis: Global Communications
Introduction
In recent times the increasing levels of competition in every industry have created pressures for management that had not previously existed. With the level of information available in the world today, instant access to data, and far more powerful tools for analysis, businesses are now faced with a conundrum. On the one hand companies can now project business opportunities years out. On the other hand their competitors are able to create plans to take that business away. The major defense against this has often been to cut costs. The Global Communications scenario presents exactly that problem.
Situation Analysis
Issue and Opportunity Identification
In order to increase their market share and deal with falling share prices Global Communications' management team has developed a complex business plan to increase growth. Additionally the senior management has created a plan to cut expenses and increase profitability. The company plans to expand aggressively into international markets in order to maximize revenue. They also plan to outsource a large number of jobs, using India and Ireland as a source of well trained cheap labor.
The management team presented this idea to the board of directors and was approved. They then presented the idea to the union representation, and found that the union had a problem with the plan. The union had given concessions some months earlier and was going to be unwilling to settle for further cuts to their union members' wages. They were even more unwilling to accept cuts to the union membership, in the form of layoffs. In the end the union president felt compelled to "take action both through the government and all other available resources."
Stakeholder Perspectives ...