TERRA COG GPS

PROJECT AERIAL - COMMUNICATION AND CONFLICT

Assignment by -
Gaurava Singhal
J Venkatesan
Krishan Tyagi
Pravata Nalini
Shrawan 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 Objectives
Design 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

 Effective Group Structure
Project ‘Aerial’
Richard Fiero Consultation
Suggested Reporting President Reporting
Structure

Harold Whistler Emma Richardson Becky Timmons

VP, D&D Project Manager, Aerial CFO

Allen Roth Ed Pryor Tony Barren

Director, D&D VP, Sales Director, Production

Monday, October 18, 2010

 Thank You

Monday, October 18, 2010