Terracog Case

Introduction

TerraCog, a successful privately held high-tech firm that develops GPS (global positioning system) and similar products for consumer markets, has recently been caught unaware by a competitor's new product that makes novel use of satellite imagery.

Background

Founded in 1977, TerraCog got its start manufacturing high-end sonar equipment for serious sport fishermen and boaters. In the late 1990s, the company had introduced its first GPS products, marketed specifically to hunters, hikers, and campers. TerraCog wants to develop a product to directly compete with competitors, but the projected costs threaten to ruin the project.

Problem

TerraCog has an unstable executive team, which has no conflict management skills, effective communication and leadership skills, and a consistent vision.

* Ineffective group structure.

* Weakness in the decision making process.

* Conflicting departmental objectives.

* Conflicting individual objectives.

Opportunities

* Creating meeting agenda with clear strategy

* Developing communication structure understanding team's perspective

* Outlining pros and cons of product designs and development

* Developing leadership and conflict management skills

* Structuring organizational strategy and goals

Recommendation

* Proper team structures need to be formed with specific directions and clear goals.

* The leadership should manage team conflicts and establish organizational goals.

* Discussions should be taken with proper agenda for improving product design and development reducing production costs.

* Management should understand each individual team's prespective.

Conclusion

President, Richard Fiero, failed to show his effective leadership skills by giving required directions to the team members. If they launch the product at zero margin then they are able to capture their lost market share.