Terracog Is a Privately Held Company and It Specializes in Gps System.

TerraCog is a privately held company and it specializes in GPS system. Most of the time firm is 2nd entrant and it tried to capture market share. Firm was only able to grow as it produced some high-quality products and word of mouth of customers created a network effect which ultimately converted into growth. Firm was thinking about trying to extend its product to underserved GPS customers specially Cycling and Fitness club.  

Emma is recently promoted to VP position and she must look after the coordination between different departments while their Project Aerial was in the launching process. Emma doesn’t have much experience in product launch.

The single biggest factor that lead to the current bad situation was ignoring incoming competitors’ strength. Short sightedness and lack of common vision/goals was the underlying reason which graved the situation. Lack of common goals was a contributor in a way that Allen team was working on multiple projects and they have their own plans and directions for Ariel project and they were thinking about brining some new rejuvenations in the product. But suddenly sales team asked them to bring some specific changes in product and compromise on quality which was a value compromising on behalf of design team. So, they worked half-heartedly as their goals were not aligned properly, hence leading to in-efficiency. While short sightedness was the major fact on behalf of leaders especially on sales team as they were not able to realize that how big competitors can hit our market share as they are coming up with innovation. Firm thought that as they are lacking some high-quality service especially the GPS accuracy, so they will not be able to penetrate market. As firm was itself high quality service provider and it capitalized on this feature, so other business feature was not of much importance to them, therefore this short sightedness leads them to a grave situation where they are not only thinking about redesigning their product but also might delaying their product launch, ultimately profit loss.

Preference of individuals goals over organizational goals and inter group conflicts were two factor which created this situation as well. Sales is interested in taking up project as they wanted a big compensation package. Design team feel that there are several other existing projects that are compromised upon. Allen Roth has its eyes set on the post of VP. Tony Barren is in the struggle to prove his mettle because he was not successful in earlier projects.

Lack of leadership is visible amongst the firm. Fiero, president of firm, should have given directions to all team members. He should have given directed this team when BirdsI was launched. Also, Richard made major decisions without consulting all team members like he had meeting with Pyro and then advised his team to launch Ariel without understanding the dynamics of whole project that how can it impact the company bottom line and repute if they tried to shoot it in market without proper research.

Lack of communication among executives/Lack of structure is a very common factor in the firm. In the past, Whistler and Fiero used to discuss a lot about the new product but now with the impending retirement, Fiero doesn’t found a replacement of Whistler with whom he can consult. Also, team does not have clear cut meeting agenda whether meeting is about setting price or discussing positioning of product. Conversations are freely flowing, and people are calling each other out. Also, conversation got split off even though all are sitting inside the same meeting at the same table. Regarding the positioning of product, Pyro and Fiero have already taken a decision without consulting other key members of meeting. This lack of communication has created an environment of animosity and very straight words communication during the meeting is proof. Also, Tony Barren showed stubborn behavior to prove his mettle, had everybody a clear idea about the gravity of situation, he would have taken some extra measures to bring something on table regarding cost estimates.  

Lack of Innovative culture and lack of motivation were the two absence of cultures that are contributing to this factor. Although firm never started as innovator but after having a good start and capturing some market, they tried to capture with their original value of providing high quality service. They never tried to innovate themselves and now they are facing a situation that your competitor came with a better attractive option and grabbed your market. Firm should keep on differentiate itself if they want to retain customers and it can only be done by promoting a culture of innovation and creating enthusiasm in your firm. Lack of motivation and absence of innovation will create a monotonous environment, ultimately dropping your firm performance. This is exactly one of the contributing factors for current situation.