Terracog Global Positioning Systems: Conflict and Communication on Project Aerial

1288 words 6 pages

TerraCog Global Positioning Systems:

Conflict and Communication on Project Aerial


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.
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Moreover if the product was accepted by the customers, there wouldn’t be any need to incorporate newer facilities. That would help us to concentrate on the projects in line. Only if we launch at this price we would able to generate some profits. The finance department would be happy regarding this pricing.

ii. To launch the product at $425:

There wouldn’t be any profit margin if we were charging at $425. We might be able to attract customers and thereby gaining market share. After some particular time, we could incorporate additional features and could try for cost saving measures. The incorporation of additional facilities and implementation of other projects could be carried out side by side. The sales department would welcome this pricing.

iii. To drop the project:

There would be potential loss of a large number of customers and market share. We wouldn’t be able to generate any money and we would incur the loss to implement the prototype. The opportunity cost would loss. Other projects wouldn’t get affected if we drop the whole project. There might be chances that the design department would get a negative feeling.


I would suggest launching the product at $425 as per the schedule. Further we could incorporate the additional features that would enable us in cost cutting. We