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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.
Monday, October 18, 2010
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.
Monday, October 18, 2010
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.
Monday, October 18, 2010
Weakness in Decision Making
BirdsI’ at Outdoor Retailer Show
Market Reaction
‘BirdsI’ retail price - $400
Monday, October 18, 2010
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
Monday, October 18, 2010
Conflicting Individual Objectives
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.
Monday, October 18, 2010
Conflicting Individual Objectives
Harold Whistler (VP of Design and Development)
Not actively involved in day-to-day activities.
Not meeting the demand of the chair.
Monday, October 18, 2010
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.
Monday, October 18, 2010
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.
Monday, October 18, 2010
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.
Monday, October 18, 2010
Conflicting Group Objectives
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.
Monday, October 18, 2010
Conflicting Group Objectives
Finance -
Not ready to make any compromises on margins, even if that positions the product unfavorably in the market.
Monday, October 18, 2010
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.
Monday, October 18, 2010
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
Monday, October 18, 2010
Thank You
Monday, October 18, 2010