Problem Solution: Teratech
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Problem Solution: TeraTech
Organizations must address customer concerns and improve business processes in order to sustain growth and competitive advantage. Companies such as TeraTech can improve their processes by scanning the environment to identify market trends and target markets to exploit. Furthermore, companies should sustain customer relationships to retain and increase customers by forecasting and satisfying their needs.
The objective of this paper is to demonstrate a systematic approach using the 9-step Problem-Solving Model to provide TeraTech with real solutions to the companys challenges. The paper identifies opportunities and issues, defines the problem, and develops a set of alternative solutions. Finally, the paper suggests the best alternative to implement in order for TeraTech to achieve their goal of sustaining sales growth in the double digits.
Describe the Situation
TeraTech is a “Customer Relationship Management (CRM) solutions provider in the pharmaceutical industry” (“Scenario One,” 2007, 1). Although the company has led its competitors in the industry, TeraTechs fourth quarter sales fell significantly, which concerns the companys CEO. TeraTechs executives assume one of the reasons for slowing growth rates is increased competition with competitors that have the analytical software the pharmaceutical industry desires. Another concern is customer dissatisfaction identified from the most current customer surveys.
TeraTechs sales growth is slowing, which may lead to continued losses if the company does not develop a product to address customer needs. Furthermore, slowing growth rates can be attributed to the companys clients moving to TeraTechs competitors who offer analytical and modeling tools that address pharmaceutical industry needs. To solve these concerns, TeraTech needs to conduct a market analysis to implement a new analytical product that will propel the company back to double-digit growth (“Scenario One,” 2007).
Issue and Opportunity Identification
TeraTech faces several challenges. First, the companys sales growth slowed due to customer dissatisfaction and increased competition. Second, TeraTechs competitors have the analytical product the companys customer desires. Third, TeraTech is trying to manage expenses and does not want to hire any new employees. In fact, the company plans on keeping the same number of employees from the previous year or reduce the numbers with attrition. A fourth challenge is TeraTechs current employees do not possess the skills necessary to develop and support the new analytical product. Lastly, TeraTech is concerned about implementing the new product in a short amount of time in order to remain competitive with its competitors.
Although TeraTech has several challenges, the company can create opportunities from these challenges. First, TeraTech has the opportunity to develop a CRM tool that can appeal to their customers needs to increase sales. Second, the company can create sustainable customer relationships to retain the companys current client base as well as attract new customers. Third, TeraTechs new product can improve the pharmaceutical industrys needs to “maximize the value of their data and refine their marketing efforts for maximum effectiveness” (“Scenario One,” 2007, 2). Fourth, the CRM tool can help TeraTech forecast current and future customer needs for increases in customer satisfaction. Lastly, TeraTech could partner with other companies to gain access to newer technologies and quickly meet their customers needs.
Stakeholder Perspectives/Ethical Dilemmas
The stakeholders in the TeraTech simulation are TeraTech, investors, employees and consumers. TeraTech is on the verge of losing customers due to problems in their CRM software. The customers want a product with analytical and modeling capabilities, which is available by TeraTechs competitors. Additionally, the companys growth rate has slowed to single-digit numbers and concerns the CEO. Therefore, TeraTech must identify a system that can increase sales growth and meets customer needs.
TeraTechs investors are also concerned about the companys growth rate. The investors have taken pleasure in the companys double-digit growth from previous years. Investors want to continue enjoying the rewards from investing but may choose to seek other investments in order to sustain income potential. Furthermore, TeraTech has a responsibility to its shareholders to be a profit-making company and to protect their interests. If the company fails to address measures to increase their growth potential and satisfy their customers, TeraTech may suffer continued losses both in sales and customers.
Employees have the right to expect any company to provide promotion and development opportunities as well as decent working conditions. By addressing the needs of the companys employees, TeraTechs employees will have job satisfaction and be motivated to sell the companys products. Furthermore, employees have the opportunity as stakeholders “to become part of the firm, managing themselves, monitoring quality and productivity” (McNutt & Batho, 2005, p. 657). TeraTech recognizes that without the support and loyalty of the companys employees, the organization risks losing sales as well as current and potential customers.
Lastly, the consumers have the right to expect a company to represent the customers best interests. Customers are entitled to expect the company to provide quality products to meet their needs at an appropriate cost and must believe the company values their business. TeraTechs current product does not meet customer expectations, which can result in the customer looking at different companies for a better product. In order to balance the competing values and TeraTechs stakeholders, the company must identify an appropriate problem statement.
Frame the “Right” Problem
TeraTech will achieve double digit growth and become the global CRM provider by developing and sustaining customer relationships, creating and marketing new products, and acquiring the skills to implement and facilitate innovative products to the TeraTechs customers.
Describe the “End-State” Vision
TeraTechs end state vision is to achieve double digit growth, retain customers, increase client base, increase customer satisfaction, and continue to establish itself as the industry leader in CRM solutions provider. The company can achieve