This document discusses conflicts that have arisen in TerraCog's Project Aerial. Project Aerial aims to launch a new GPS product with satellite imagery to compete with a similar product from another company. However, the sales, production, and design teams disagree on key aspects of the project like price point and specifications. As executive VP, Emma Richardson must resolve the conflicts between teams and determine a path forward for the project, such as launching at the competition's price despite losing money initially, delaying the project to lower costs, or potentially abandoning it. The document analyzes sources of the conflict, including rushed timelines, lack of clear goals and communication, and individuals prioritizing their own interests over the company's.

1. TerraCog GPS - Project Aerial
PGMAX (2014-2015)
Anupam Ghosh (Roll no. 6)

2. What You Say?
• You all must have Conflict, didn’t you?
• Is it always Negative or Positive also?
• Reasons for Conflict?
• Can it be managed?

3. TerraCog
• Founded in 1977, manufactured high quality GPS and fishing
Sonar equipment.
• Not the first to market new products.
• Have good market presence and Brand value.
• Products were of high quality and effectively addressed
customer needs.

4. Birth of Project ‘Aerial’
• Posthaste, introduced a GPS product called ‘BirdsI’ that displays satellite
imagery in Q4, 2007 at retail price of $400.
• TerraCog did not see any threat and underestimate BirdsI, which proved to be
wrong.
• By the time TerraCog realized their mistake in judging BirdsI, the product was a
huge success.
• In order not to lose the market, TerraCog also plans to launch a GPS with
satellite imagery dubbed Project-Aerial.
• As the product was to be launched without any delay, a redesign within existing
GPS platform was proposed.
• Gramin is also about launch GPS at $395.

5. The People
Richard Fiero
(President)
Emma Richardson
(Exec VP)
Tony Barren
(Director,
Production)
Becky Timmons
(CFO)
Ed Pryor
(VP, Sales)
Regional Sales
Manager
Harold Whistler
(VP, D & D)
Allen Roth
(Director, D&D)
Cory Wu
(Manager, S/W
Design)
Alice Gorga
(Manager, H/W
Design)

6. The ‘Aerial’ Route
• Aerial project was launched in Q2, 2007 with the plan to launch the
Aerial on Q3, 2008.
• Initially it was decided to launch new product without Satellite
imagery, which was reversed.
• Planned to compromise on speed as they expect the consumer to
inherent trade-off to get more sophisticated graphics.
• To cut down on cost, TerraCog decided to tweak the same set of
hardware and components that was used in previous product.
• Aerial will have a premium of $50 than existing GPS.

7. Conflicts in ‘Aerial’ route
• Sales team headed by Ed Pryor feels the new product Aerial should be priced below
$425 to capture the lost market share to the competitors. They are also concerned about
slow speed of Aerial.
• As per the production team headed by Barren and Design team headed by Roth, price for
sale would, at the minimum, be $475.
• While CFO, Timmons was not ready for price below $500 because of economic
conditions outside.
• Cory Wu, Manager S/W design was not convinced with the price of $475 as the changes
were not enormous as per his team.
• The key unit managers gather in a pair of contentious meetings that feature anger, finger
pointing, blame and bewilderment, but produce no effective conclusion.
• The responsibility of pushing the group towards a decision lies with Emma Richardson,
a newly promoted Executive Vice President of the Company.

8. Potholes in ‘Aerial’ route
• No clear Agenda
• Lack of communication among executives
• Inter group conflicts
• Task Conflicts
• Delayed market responsiveness
• Short-sightedness
• Lack of proper research
• Lack of innovation
• Lack of motivation
• Lack of enthusiasm
• Lack of common vision
• Preference of individual goals over organizational goals.
• Lacking true leadership

9. Biggest Potholes in ‘Aerial’ route
•Hurry to enter the market after a significant lag.
•Lack of Clarity on price and positioning
•Inter group conflict
•Individual goals over organizational goals
•Short sightedness and lack of common vision/Goal

10. Conflict Based Individual Goals
• Pryor (Sales), concerned with compensation change and not
want to disappoint sales team.
• Barren (Production), Recent production problem which he was
held responsible for. Job insecurity and maybe resentment for
being blamed may lead to him being very conservative.
• Roth (Design) team not excited about project—other projects
more exciting—interested in being promoted to be VP of
design and development.

11. • Wu (software designer)—at meeting defends design not
understand why costs are so high since he only tweaked the
firmware
• Whistler (VP of D&D) no longer fully involved in the
company. Retirement soon.
• Richardson (Executive VP)-difficult position, recently
promoted. Needs to reach a solution but not hurt her
relationship with other managers.

12. How should Emma do?
• She was showing Ineffective Conflict Management Technique –
Noaction.
• She should implement Effective Conflict Management Technique –
Superordinate Goals.
• For the Aerial project, Emma should adopt Collaborating Conflict
Management.
• Emma Richardson should start working one on one with Team
Leaders to address underlying agendas.
• She should start acting as a mediator and a common link for
communication between various departments.

13. What should Emma do?
• Launch Aerial at full price to maintain standard
margin
• Launch at competition price $425 at zero profit while
working on redesign to reduce cost
• Delay Aerial while working on lower costs re-design
• Abandon Project - 'Aerial'

15. Thank You…!