Gap Analysis: Global Communications
Global Communications faced a difficult and arduous decision. The company is declining and a new growth strategy is ready for implementation. The growth strategy will enable Global to become more competitive and responsive to their customers. However, the implementation of the plan was not thought out clearly causing conflict and division. How can Global fix their issues? The problems Global faced were looked at and measured against the concepts presented in the cited texts.
Situation Analysis
Issue and Opportunity Identification
In the scenario downloaded from rEsource, Global Communications faced difficult times. The stock price dropped over 60% within a three year period. Stockholders were anxious and their confidence was declining. The scenario indicated there was tremendous pressure to turn around economically.
The blame was placed on the entrance of the cable companies into the telecommunications industry. Cable companies, with advanced technologies and infrastructure, were able to not only provide television entertainment, but also phone and internet access. This was something Global Communication was lacking in. Global Communication could no longer compete in customer service.
In Understanding Business, 5th Ed, Nickels and McHugh state:
Competition among business has never been greater than it is today. Some companies have found a competitive edge by focusing on making high-quality products. The goal for many companies is zero defects-no mistakes in making the product. However, simply making a quality product isn't enough to allow a company to stay competitive in world markets. Companies now have to offer quality products and outstanding service at competitive prices. That is why GM is building a ...