Gap Analysis: Global Communications
Katrina L. Bailey
MBA 500/Foundations of Problem-Based Learning
October 22, 2007
Gap Analysis: Global Communications
Significant changes and declining confidence from Wall Street has placed the telecommunications industry under extreme economic pressure. As a result, Global Communications has found itself in a “sink or swim” situation. They must regain consumer confidence by becoming more relevant and technologically advanced, while increasing stock values and market position, or risk becoming obsolete. In order to determine the future direction of the company, a Gap Analysis has been performed which will ...view middle of the document...
Both internal and external stakeholders have interests that must be taken into consideration when decisions are made that will impact the company.
Global Communication’s executives have a responsibility to many. They must act on behalf of the overall good of the company, but also in the best interests of the various stakeholders. Unlike the other stakeholders who can look out simply for their own interests, management must take everyone’s interests into consideration. However, it is important to remember that overall, company executives are interested in what will move the organization forward. Market share/share price, relevancy in the industry, profit, technological advancement, and quality, and loyalty are values and interests that are of importance to company executives. Global Communication executives are faced with an ethical dilemma as to whether or not they should layoff their employees and move ahead with the outsource plan, or maintain the status quo and continue to lose market share and relevancy in their industry. Management feels that their employees should be loyal to an organization that has been there for them over the years, but must now make tough choices that will require sacrifice.
Employees of the company have their own interests that may or may not be in line with what company executives feel are important. For the employees, job security, competitive pay and benefits packages, honesty, accountability, integrity and loyalty are among their values and concerns. One of the problems here is that the employees feel that the company should show some loyalty to them for all their years of faithful service. They and their Union feel betrayed by the current plan, and feel that after all their hard work they will all be turned out to pasture. They have shown their willingness to sacrifice on behalf of the company by taking a cut in pay and benefits, but the company has not shown a similar willingness to give. Overall, it is everyone within a company’s responsibility to contribute to the successful fulfillment of the organization’s mission. Management should consider who carries the brunt of that burden, and some executives do. According to Herb Kelleher, former CEO of Southwest Airlines, “Who comes first? The employees, customers, or shareholders? That’s never been an issue to me. The employees come first. If they’re happy, satisfied, dedicated, and energetic, they’ll take real good care of the customers. When the customers are happy, they come back. And that makes the shareholders happy.” (Kreitner & Kinicki, p. 20, 2004)
For Global Communications, as well as any other company that has shareholders, their interests place high in terms of importance. Most decisions that are made are made in an attempt to generate more profits, and gain more shareholders. Shareholders are the financial building blocks for most companies. When an organization is seen as having a promising future, investors are...