TerraCog

TERRA COG GPSPROJECT AERIAL - COMMUNICATION AND CONFLICT

Assignment by - Gaurava SinghalJ VenkatesanKrishan TyagiPravata NaliniShrawan Kharkia

Monday, October 18, 2010

Background

TerraCog, founded in 1977, specializes in high quality GPS and fishing sonar equipment.

GPS marketed specifically to hunters, hikers and campers.

Known in the market for understanding consumer needs and thus having exceptional product design.

Usually late entrants in the market - but favorites.


Background

In Oct 2006 - PostHaste introduced ‘BirdsI’ - ‘the only handheld GPS with satellite imagery’.

High acceptability of ‘BirdsI’.

TerraCog started losing their customer base.

Under pressure of the situation, TerraCog’s President - ‘Richard Fiero’ in haste decided to launch a new GPS - satellite imagery.

GPS for cycling and fitness applications took a backseat.


Background

‘BirdsI’ retail price - $400

Garmin GPS retail price - $395

TerraCog Aerial cost estimates show that they will need to price it at $475 - $500 to make regular margins.


Weakness in Decision Making

BirdsI’ at Outdoor Retailer Show

Market Reaction

‘BirdsI’ retail price - $400


Conflicting Individual Objectives

Allen Roth (Director of Design and Development) -

Interested in his promotion as Harold is about to leave.

Wants to build a product line other than Aerial

Ed Pryor (VP, Sales) -

Compensation of the staff of the sales department linked to sales

Wants to launch ‘Aerial’ at the earliest



Emma Richardson (Executive Vice President)

Recently promoted, wants to be in the good books of everyone.

Not able to effectively lead the group.

Tony Barren (Director of Production) -

Not ready to revise estimates further.

Doesn’t want to compromise on quality of the product.



Harold Whistler (VP of Design and Development)

Not actively involved in day-to-day activities.

Not meeting the demand of the chair.


Conflicting Group Objectives

Sales -

Compensation based on sales.

Wanted to launch ‘Aerial’ at a competitive price at the earliest.

Failed to understand the customer segmentation and product differentiation.

Failed to realize the core-competency of the organization.



Sales -

Compensation based on sales.

Wanted to launch ‘Aerial’ at a competitive price at the earliest.

Failed to understand the customer segmentation and product differentiation.

Failed to realize the core-competency of the organization.


Conflicting Group ObjectivesDesign and Development -

Not excited as they had to put other products on the backseat.

Not satisfied with the present design of ‘Aerial’. Thought that they could develop a better marketable product had they been given some more time.

Should have insisted on not making any quality compromises.



Production -

Not flexible to reconsider the cost estimates.

Don’t want to compromise on the quality of the product.

Doesn’t provide any inputs for cost-reduction.



Finance -

Not ready to make any compromises on margins, even if that positions the product unfavorably in the market.


Ineffective Group Structure

Flat organizational structure - too many leaders.

Emma, even though is the project manager, is intimidated by Ed Pryor’s seniority and connect with the President of TerraCog.

Harold Whistler is the passive manager of aggressive Allen Roth.


Richard FieroPresident

Emma RichardsonProject Manager, Aerial

Becky TimmonsCFO

Tony BarrenDirector, Production

Ed PryorVP, Sales

Allen RothDirector, D&D

Harold WhistlerVP, D&D

ConsultationReporting

Project ‘Aerial’ Suggested Reporting

Structure

Effective Group Structure


Thank You


TerraCog

Documents

product differentiation

present design of aerial

aerial ed pryor vp

terracog aerial cost

product line

exceptional product

garmin gps retail price

competitive price