Submitted by: Submitted by shivaji
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Category: Business and Industry
Date Submitted: 02/20/2011 10:06 AM
TerraCog GPS: Conflict & Communication on Project Aerial
TerraCog Global Positioning Systems
Weaknesses in the Decision making process
Decision To Proceed with Aerial made by the president Fiero based on pressure by the vice-president of sales Pryor.
Initial decision not to compete with Posthaste was on basis that it would be a short term trend.
Ariel being projected as a similar product to that of Posthaste though it is superior in quality.
Production costs is considerably higher than expected as present components are expensive.
CFO’s profit margin makes it impossible to match competitors price point.
TerraCog Global Positioning Systems
Decision To Be Made At End of Case
Launch Ariel at full price to maintain standard margin
and differentiate from the competition
Launch at competition price $425 at zero profit while working on redesign while working to reduce cost
Delay Ariel while working on lower costs re-design
causing further loss in market share.
Abandon Ariel
TerraCog Global Positioning Systems
Conflicting Individual Objectives
Pryor (Sales), concerned with the compensation of his team.
Barren (Dir. of Prod), Recent product failure for which he was held responsible for has made him conservative and hence will not take any form of risk.
Roth (Design and Development), team not excited about project—other projects more exciting—interested in being promoted to be VP of design and development.
TerraCog Global Positioning Systems
Wu (software designer)—at meeting defends design not understand why costs are so high since he only tweaked the firmware
Whistler (VP of design and development) no longer fully involved in the company. Retirement soon.
Richardson (Executive VP)-difficult position, recently promoted, middle of a problem. Needs to reach a solution internally as well as externally for the firm.
TerraCog Global Positioning Systems
Conflicting departmental Objectives
Design and development had little...