Global Positioning Systems: Case Analysis: Terracog Global Positioning Systems
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DYNAMICS OF GROUP BEHAVIOUR
TerraCog Global Positioning Systems
Section B | Group 1
Name Roll Number Aditi Bhandakkar 2015073
Animesh Khare 2015081
Anshuman Thakur 2015085
Ketan Khandelwal 2015098
Tanay Mahajan 2015100
Shital Gupta 2015115
Vibha Haldwal 2015127
“TerraCog Global Positioning Systems” case focuses on the Conflict and
Communication aspect of the group dynamics of an organization. The case showcases various scenarios wherein major emphasis is on group communication amongst different teams and the conflicts that arise within a group of people comprised of different team representatives and executive heads.
TerraCog was a successful privately held company, which…show more content… Lack of cohesive / common vision
TerraCog had no clear agenda on how to tackle Posthaste’s challenge. It was evidently in a hurry to enter the satellite imagery market after a significant lag in innovation. The second consecutive failed meeting proved that the management lacked clarity on the price and positioning of Aerial. The inter-group conflict created difficulties in reaching a consensus.
Preference of individual goals over organizational goals
In the key managers’ meeting, there was a lot of finger pointing. Production did not want to cut costs as it would compromise the quality whereas CFO, Becky, was hell bent on cost cutting as well as high list price, to preserve profit margins. VP (sales) Pryor was concerned about his endangered strong relationship with retailers. He wanted the price under $400, as the high price also threatens his sales compensation. The design and development team was reluctant to get back to redesigning, as it wanted to move on to the new…show more content… The first option was to launch Aerial at $475, a price that is $100 higher than the competitor’s product, BirdsI. This option would not be feasible because the company, in its Product Development stage, is introducing a new product in an already existing market with tough competition. In this current scenario launching a new product at high price would not be advisable due to the price sensitivity of the product resulting in loss of market share. Sales force of the company will also face difficulty to pull it through and it will not be able to generate sufficient revenue.
2. The second option would be to compromise on the sales margin and launch the product at a competitive price of $375. Here also the problem is customer oriented. Though the price of $375 would lead to increase in market share, but then the company would have to incur losses and it would be difficult to sustain them for a longer period of time. Also, that would put the burden on the company to produce a high quality product and launch it in the near future, so that they can charge a premium on it in order to cover up the losses. However, unpredictability of the market makes this option risky and thus is not