Soham Roy

WAC Term II Assignment

Roll No: 368 | Section D

Facts related to Project Aerial Decision

 No one group seems particularly interested in the product. Engineering complained that the
schedule was too fast-paced for them to produce a great product. Marketing was more
interested in the pricing of the unit than in its quality. Production is more worried about not
getting blamed for quality issues than trying to trim costs. Management is more worried
about keeping up with their competitor.
 Trying to rush into a market to catch up with competition and losing vision of the branding
that has identified the company.
 TerraCog has an executive team in flux, lacking true leadership, effective communication,
and cohesive vision

Facts related to Aerial Product development

 Design and development had little involvement into the decision to move forward again with
Ariel
 Sales demands that Design & Development and Production take steps to lower the cost of
the unit
 When the cost estimate comes in higher than originally expected, the VP of Sales demands
that Design & Development find ways to cut the costs. He does not try to explain how they
can do this, or listen to their insistence that they cannot cut the costs any further. The
answer to the higher costs from Design & Development is to tell Sales to sell the unit for the
higher costs. They do not explain how they will be able to sell a device with that high of a
price premium, not do they listen to the VP of Sales when he explains he will not be able to
do this.

Facts related to Price Point Conflict

 Launch Aerial at full price to maintain the minimum standard margin
 Launch Ariel at the average competition price i.e. $425 at zero margin profit and then start
working on redesigning to reduce costs.