Article Review of TerraCog Company

2021-06-25 07:32:56
5 pages
1207 words
Middlebury College
Type of paper: 
Article review
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TerraCog is a private company which was established at around 1977 whose primary service includes the production of Global positioning systems commonly known as GPS. Over time, they have secured a great market share because of the high-quality products they make. The main clients include hunters, fishers, campers and hikers across the region whose satisfaction with service delivery kept them loyal to the company. The organization had secured a large clientele base since its establishment and has not had to deal with competition issues in the market until 2006 when their major competitor Posthaste introduced a prototype of GPS in the market. The introduction of BirdI was the starting point of the current problems in TerraCog because of the stiff competition necessitating the company to relook on their GPS.

Question 1

After reading the article, several problems form the critical mistakes for the organization. First, the leadership role of Emma is not as it should. The leadership skills are essential in the deliberations of the meetings to ensure a good flow of communication in an organized way. However, during the meeting, the leader is neither felt nor seen. Free-flowing conversations that are unprofessional are seen in the meeting. For instance, the vice president of sales calls the CFO of the organization suggesting that she does not seem to understand the competitiveness of the market. That shows the leaders incompetence to affirm her authority and little possibility to help the organization handle the competition adequately. Moreover, there have been instances of micro meetings beings held while the formal meeting is going on. Such shows that the facilitation of the meeting is wanting.

Secondly, TerraCog despised BirdI too early without doing an analysis of the strategies they were using. In a sense, TerraCog was not using the SWOT analysis on a regular basis to ensure they remain competent. It would have been vital to carry out market intelligence with the introduction of BirdI coupled with the competitors analysis of Posthaste to strategize early enough on tactics.

The third major mistake they did was that they were not as innovative and responsive as they were supposed to be in the occurrence of the competitor. Such dynamism in response would have saved TerraCog money and time. TerraCog would have used its excellent reputation to upgrade their GPS to aerial before BirdI penetrated the market.

Another mistake was not being as innovative as they probably could be. The company would have decided just to redesign their existing GPS system to save time and money. The problem is that TerraCog is known for their high-quality products. It wouldn't be surprising if their customers did not care for Aerial, since it was the same product, just upgraded a bit. With their resources, TerraCog could have designed the next big thing in the GPS market. When they decide to be innovative, they do not carry out their research and due diligence well. As such, the prices are too high compared to that of their competitors, making it hard to penetrate the market with the new product.

Question 2

In the TerraCog Scenario, the most appropriate conflict resolution modes would be compromise and collaboration. Compromising is important because it helps individuals to be flexible and be willing to let go part of what they hold as a persuasion (Miner, 2015). In a sense, the person compromising is suggesting that they desire to express their views and concerns but also they will respect the goals of others. For example, the vice president suggesting that they will not make sales until the price is lowered to less than $475, would be detrimental to the company. However, in compromising, he can decide to make the sales in the meantime as the organization re-plans. That would ensure that the revenue of the company is not hurt. Collaboration would be an ideal of solving the conflict in TerraCog. The CFO should argue out her position, and how the perception of the market is like and the vice president of sales should explain why selling at that price would prove an uphill task. Then using facts, reason, and rationale, they can find an assertive position that would provide the best outcome.

Question 3

The ethical dilemmas that faced TerraCog were to choose whether a competitive price that would work against the competitors such that they would face out the competitor out of the market in the long run or they should give up the Aerial project altogether. The competitive price would be so low that the BirdI would only make losses by adopting that price and continuing in the pre-set price would reduce the clientele base who would be poached by TerraCog in the reduced prices. It would be unethical because the primary aim would be to destroy another business altogether for TerraCog to continue dominating the GPS market. Nonetheless, the CFO had to make a decision anyway on what to follow whether policies or ethics.

Question 4

Routine team conflicts and negotiations become ethical issues when they keep recurring in quick succession even after being resolved and when solution and negotiation approaches provided do not seem to yield the expected results. For instance, it would be expected that after resolving the conflict between the CFO and the vice president of sales regarding the communication about the price set, recurrence of the same issue maybe in a different facet a few more times would be termed as an ethical dilemma. Moreover, team conflict would be termed as an ethical dilemma when the individual goals of individuals seem to take precedence of the team goals. Finally, the desire to meet unrealistic team goals would result to an ethical dilemma.

Question 5

I would recommend stress management approach that would assist the employees to have a better way to perceive the stressful project and handle their stressful emotionally appropriately as highlighted by Ashkanasy and Dorris, (2017). This would involve proper communication strategies among the employees in a strategic manner. For instance, the fact that the meetings are not fruitful could be a cause for stress. As such, employees in the organization not directly involved in the project should do the facilitation of the meetings. Every employee would be less stressed if their view were heard and considered. As such, the stressors should be minimized and employees given rewards to eliminate stress and keep them motivated.

Question 6

Emma Richardson has a few options to help the crisis in the Aerial project. However, the best one would be to go back to the drawing board, carry out more market research and the design of the GPS product. This approach would delay the launch date and may disappoint the launch team. However, it would be the most ideal as it would give the team ample time to plan and consider unanticipated occurrences. Further, it will ensure that the price will be reasonable to hit the market with a bang and secure adequate clientele base. Re-planning also will offer an excellent competitive edge with BirdI in the long run.



Ashkanasy, N., & Dorris, A. (2017). Emotions in the Workplace. Annual Review of Organizational Psychology and Organizational Behavior, 4(1)

Beer, M., & Yong, S. (2008, April 11). TerraCog Global Positioning Systems: Conflict and Communication on Project Aerial. In

Miner, J. B. (2015). Organizational Behavior 1: Essential theories of motivation and leadership. Routledge.

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