Terracog Global Positioning Systems: Conflict and Communication on Project Aerial

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WRITTEN ANALYSIS AND COMMUNICATION - I TerraCog Global Positioning Systems: Conflict and Communication on Project Aerial By RAHUL.R (111039) To: Richard Fiero, President Tony Barren, Director of Production Ed Pryor, VP - Sales Allen Roth, Director of Design & Development Becky Timmons, CFO From: Emma Richardson Date: 14th March 2008 Sub: Decision to be taken for the project Aerial It’s high time that we have to take the decision regarding the project Aerial. If we further delay the decision about launching the product, there are chances that we may lose our valuable customers and the market share. So I have made the decision to launch the product as per the schedules. Please…show more content…
But that was not accepted by few of the members. They demanded a cost reduction. We were not able to reach a consensus that time. So one more meeting was arranged on March 14. In the meeting a new price of $475 was put forward by the design team. As Tony Barren didn’t want a situation to be like when he and his team launched sonar project, he thought the pricing was fair enough. But still difference of opinion prevailed. The sales team believed that the price was in the higher side and we wouldn’t be able to sell the product. They felt the price was not competitive and we would lose our market share. There were arguments that the product could be introduced into the market at $425 and further changes could be incorporated later. There were even suggestions of dropping the product. There prevailed a ‘go/no-go’ situation about the product launch. Objective Decide whether to launch the product or not. Options i. To launch the product at $475. ii. To launch the product at $425. iii. To drop the project. Criteria for Evaluation If TerraCog would fail to launch the product, there were higher chances of losing the customers. Already we were lagging 2 years behind BirdsI. So before making the decisions the various criteria we have to analyze were: i. Market share ii. Customer response iii. Affecting other projects in line iv. Profit Evaluation of Options i. To launch
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