Project Ariel

8/8/2019 Project Ariel

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Terracog global positioning system

Conflict and Negotiation on Project Aerial

presented by-

NIDHI SINGH

PRIYANKA PANDEY

VISHAL KHARRANITISH SETH

PREETI SAGAR

SHIVANI SINGH


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Overview of the Case

High quality GPS

Concentrate on outdoor market

The competitors model BirdsI

Project Aerial creates difficulties within the team


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People involved


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The Management

Emma Richardson, Executive Vice PresidentRichardson waspromoted to Executive VP since January 2008. She began her

TerraCog careerin 1996 and has worked in both Sales and Production.

She was instrumental in shifting production from Taiwan to Shenzhen,

China. Richardson has an MBA from the University of Michigan.

Ed Pryor, VP of SalesPryor started at TerraCog as a National

Account Managerin 2000 and became VP of Sales in 2006. Before

joining the company, he was a category manager for campinggear at

REI. Pryor has a BA in History from UCLA.

Allen Roth, Director of Design & DevelopmentRoth joined

TerraCogin 2003 after workingin product development at Suunto,

Motorola, and Research in Motion. He has a degree in IndustrialDesign from Northwestern University and an MBA from USC.


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What is the Problem?

TerraCog has an unstable executive team,that lacks

true leadership, effective communication, and a

consistent vision.

Inefficient group structure

No confirmity

Poor decision making

Inter department conflict


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1. Disagreements on price with the two departments

Requires hardware and software upgrades

Higher production costs

Sales requires Design & Development to cut costs

2. Communication and efficiency problems within the team

Lack of communication

Bad cooperation Inefficient meetings

Vice president Emma Richardson does not perform as prescribed


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Factors contributing to the problem

Design and development had little involvement into the decision tomove forward again with Ariel

Sales not asked to make recommendations with respect to reductionof cost.

Problem of cost discovered late.

Team not united on common goal

Not clear what the meetingis aboutis it meeting to set a pricepoint on Ariel-to set a overall marketing plan for the product-to set

an overall strategic direction for new products.

Group needs time to digest the information about the price problem.


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Conflict is Constructive When...

Improves decision making

Stimulates Creativity & innovativeness

Provides a positive outlet for tension within the group

An environment where employees subject themselves toself evaluation and change

Interactionist view of Conflict: Conflict is not only apositive force in a group but that it is an absolute necessityfor a group to perform effectively.


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Negotiation Process; recommendations for

organisation

1) Preparation and Planning

2) Definition of Ground Rules

3) Clarification and justification

4) Bargaining and Problem Solving

5) Closure and Implementation


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What can the team do?

Shift People and bring in another leader

Replace Emma and give her a different position

Collaborate to satisfy all parties

Accommodate

Compromise


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Possible Solutions

Launch Ariel at full price to maintain standardmargin

Launch at competition price $425 at zero profitwhile working on redesign to reduce costs

Delay Ariel while working on lower costs re-design

Abandon Ariel


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Compromise

Research and Development initial cost cuts of 7 to

8% accepted by Sales

In exchange for a restructuring of the sales plan

The compromise will result in Terracog

maintaining their brand image of providing

products that are a step above their competitors

and worth the additional cost


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Thankyou

Any Questions?

Project Ariel

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Transcript of Project Ariel