Terra Cog new project GPS (Global Positioning System) named Aerial. Old customers of TerraCog keeps asking about the same type prototype of GPS as new competitors lauched named ,,Ibird’ –with satellite imaginary system. That product is almost the same quality as the old TerraCog GPS model ,but people find need to have separate product with satellite imaginary function.Firsly TerraCog was not impressed with product .But after ,,Ibirds’’ success and grown custumers asking ,about TerraCog’s version of product,they decides to launch version Aerial on minimum price level.
Agreement about price setting on Aerial.
Sales team and director decides to make aerial product,but only redesign the product what they have.They talk to r&d team but they aren’t enthuasiastic about new product,1.time they should prepare product only 6 month (time pressure) and 2.there are few other projects they are working and believing in those success
Research & Development team developed product with high costs and because the cost price could not compete with competitors, sales team keeps asking to reduce product costs.In meeting ,people from different teams and sitting together, talking problems with each other and not trying to solve the problem,sales team asking to reduce costs,r& d team saying that they cant reduce costs.
After the week they also can’t set the price, r& d acting like they don’t care ,they feel that they did everything what they can, sales people believing that product can’t be sold by high set price ,because product will be launched almost 2 years after ,,Ibird’s” and with slower working mechanism.Some of group members do not participate in first meeting ,others living with retirement mood is not interested in new products.Some step back from project because don’t wanted to take quick decisions.
Barren interested in his own success ,needs to make product in good quality , and don’t want to changer price.Tony don’t’ wan’t to lower price to because of quality and all fault about big price sets on sales team and positioning type,he is not interested in boss plans and his wanted things from new product. Pryor from the first meeting thinks that he can’t sell product..people acting on the pressure of time..not listening…Richardson should make decision by herself
Problem Identification:
1)Bad communication in organization: sales and research &development teams not communicating ,everyone seeks for their best .
2)Time pressure: need to make product in certain amount of time , in good quality ,to fulfill clients expectations.
3) Poor leadership: Boss Richardson starts to command project on half point of its making, lacking information about certain companies fields,while everyone tries to communicate thru her but not with each other .
4)Teams concentration on other projects or interest: r&d researched other projects while they have to work on Aerial , sales not helping with price setting and leaving the responsibility for that in r&d team hands.
5)Product quality and price are not competitive with others: product launched later than it should,and it’s slow in time of product making other companies set their copies of products with satellite ,in lower price than Terracog.
6)Different interest in product developing: some people don’t participate in team meetings and after makes situations which only distracts people from work. * Cohesiveness-the strength of group members’ desires to remain a part of a group. uncohesive groups, The greater the difficulty people overcome to become a member of a group, the more cohesive the group will be. * Cross-functional teams – members from identical organizational levels but different specialty areas. * Work groups – leaders make decisions on behalf of group members *
Traditional Work Groups Management driven | Workforce for isolated specialists | Function/department focus | Many ob descriptions | Information limited | Segregated goals | Management controlled | High management commitment |
Organizational decisions involve some degree of risk – ranging from complete certainty (no risk) to complete uncertainty (high risk).
Top-down decision making - the practice of vesting decision-making power in the hands of superiors as opposed to lower-level employees
How to make decisions under pressure? 1. Recognize your prime objectives 2. Rely on experts 3. Anticipate crises 4. Learn from mistakes
Goal-Setting Theory – a goal serves as a motivator because it causes people to compare their present capacity to perform with that required to succeed at the goal.
Assign specific goals
Assign difficult, but acceptable performance goals
Provide feedback concerning goal attainment

Expectancy Theory