Managerial Communication I

Assignment 1

TerraCog Global Positioning System

Situation Analysis

Om Prakash Mallik
Executive Assistant
 MEMORANDUM

DATE: 16th March 2008

TO: Emma Richardson, Executive Vice President

FROM: Om Prakash Mallik, Executive Assistant

SUBJECT: Situation analysis of Project Aerial

I want to inform you that I please avoid using terms such as I, my etc have brieflyonly briefly?
analysed the situation of the Project Aerial. I have mentioned various aspects is this last sentence
really needed?. The price of $ 425 is suitable for the project, and it will also provide value to the
customers. Prices beyond or above which the company may face contraction.why are you making a
recommendation ?

I am confident that customers will consider our products over the competitor’s products.

Kindly go through the report. You will get an overview idea. Are these last two sentences
needed/appropriate?
Emma Richardson avoid referring to the audience for your report in your report has to
decide whether to cut the price or notavoid such informal phrasings. If they avoid using
terms such as they, them etc cut the price, then at what cost do they have to stick
together??, and if they drop the idea of Project Aerial, what are the consequences please
rephrase this last sentence?

Price Analysis:
They can’t able fix the price?. So let's see avoid such narrative language the different
conditions at different prices.
What if the price is set to $ 475?

- Since they are already late in the market by two years, increasing the price will affect
their sales and market share. Please elaborate further
- Posthaste and Garmin competitors are already selling to the retailer at $250 and
$395, respectively, so if they set the price so high, there might be a decrease in sales.
- They didn’t add any extra features, so there is no point in increasing the price by $
100 where the customers are getting the same features or performance at $375?
with BirdsI. The customers' expectations would be more, hence dissatisfaction and
unfortunately, the loyalty will reducevalid point but needs to be much better
phrased.
- Since the sales are already increasing, so a high price will affect the customers??.
The revenue would be more not necessarily if volume is lower?; hence the profit would be
more at the price of $ 475. And they don’t have to redesign the project, Aerial. The
company's position is medium to firm??, and the customers are tech-savvy, so they don’t
need to push the sales please rephrase and elaborate further; there is already a demand in
the market for GPS.?

Let’s look at the situation at the price of $ 425.

- The revenue generated would be less, and hence profit margin will decreasereview
and rephrase.
- Since the fuel price is increasing, then will affect the production cost and...
- We have to redesign the project, Aerial and..
- Since the fuel cost is rising, we have to compromise on that??.
The price is near to the competitor’s price, so there won't be an issue of market share. With
this price, they can boost our production units compared to $475 because demand and sales
increase. They please avoid using terms such as they, them etc will meet the customers'
expectations, and hence the loyalty will increase. They already have competitors, so the
positioning of products won't be an issue with this price.?

TerraCog has to sustain itself in the market meaning? because the demand for GPS will
increase. If they build a strong network and loyal customers base, they will be the majority
of the market share in the futureplease review and rephrase.
There will be more competitors in the future; to counter them, they have to meet the
customers’ needs by providing better features with the best value.
Why can’t they reduce the price below $ 400? Is this being considered by any department?
Then they must have to compromise on the profit margin. The production cost will also go
higher in the upcoming years. Now, let the customers meet your product and make the GPS
an essential commodity for them. Later the customers will go for it, even if the price is
higher. Then the position of the company will be in the vital zone.??

If they drop the idea of project Aerial, the competitors will bring that idea, and the
company will be at a more significant lossplease rephrase. The satellite imaginary will
attract the users more than local GPS. The more the company diversify, the more the
customers base it will build. They must have to work on this project and meet the
customers' needs.

So, the price of $425 has a better growth opportunity for the company. why are you making
a recommendation here?

7/20
Few valid points, inferences and analysis.
However some very significant rewriting and reworking required.