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Running head: GAP ANALYSIS: GLOBAL COMMUNICATIONS
Gap Analysis: Global Communications
University of Phoenix
Foundations of Problem-Based Learning
MBA 500
July 24, 2007
Gap Analysis: Global Communications
Global Communications (GC) is faced with a situation common to many industries today, increased competition and dwindling profits. GC’s stock value has fallen over 50% over the past few years. Decisions need to be made and consequences considered.
Situation Analysis
Issue and Opportunity Identification
GC has experienced an increase in competition, an increase in consumer demand, and a drop in stock value of more than 50%.
Opportunities that exist for consideration include outsourcing to foreign countries, layoffs of current employees, a change in the working relationship with the union, and the possibility of telecommuting.
Outsourcing has the advantage of a lower cost per employee. Typically the outsourced employees receive lower wages and are less likely to receive health benefits. There are security risks which must be considered. Among these risks would be the loss and/or misuse of confidential, personal information, and the theft of company processes.
Layoffs of current employees would lower the company’s current employee costs, but could have a deleterious effect on employee morale. Studies have shown that employee involvement in decision making contributes to employee morale and the remaining employees would have had this option taken away from them, (Dube, Arindrajit, Ph.D., The University of Chicago. 2003.) This could be countered by emphasizing the possibility of travel, movement to another division, and exposure to another culture. The form of communication to the employees would need to be considered to ensure accurate understanding of the message, (McShane & Glinow, 2005).
Another option that could be considered for the current...
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