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sdfgdjsgj. Gap Analysis: Global Communications The confidence in the entire
telecommunications industry is diminishing. Stockholders ...
Submitted by venki080 on April 27, 2008
Category: Biographies
Words: 1718 | Pages: 7
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Gap Analysis: Global Communications
The confidence in the entire telecommunications industry is diminishing. Stockholders are realizing diminishing returns on their investment and are having doubts about the industry?s ability to regain past levels of profitability. Telecommunications companies are experiencing losses due to high levels of competition for the consumer dollars available. Cable companies have been allowed into the market to provide a single provider solution for television, broadband internet, and two-way voice communication. The leadership of Global Communication has the challenge before them of turning the declining profits of the previous three years into gains.
Situation Analysis
Issue and Opportunity Identification
The increase in competition and the reduction in shareholder confidence has had a large negative impact on Global Communications stock value. Over the past three years, its stock price declined from $28 per share to $11 per share. This 59% loss in shareholder value minimized confidence in the company and added to the telecommunications industry?s overall financial problems.
The senior leadership team has two policy changes in the works to help turn the decline of the company around and start back on the road to prosperity. The first is the introduction of new and more advanced communication services marketed to small business and individual consumers. These include wireless internet access via phone or personal computers, video, and remote network access through a virtual private network (VPN) to their company?s mainframe. Second, the senior leadership team has identified measures that will improve profits. In support of these initiatives, the company plans to implement an aggressive marketing strategy internationally with the goal of becoming a global source of communication.
Stakeholder Perspectives/Ethical Dilemmas
Global Communication?s President and Board of Directors have...
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