Problem Solution: TeraTech    

Running head:  PROBLEM SOLUTION: TERATECH

Problem Solution: TeraTech

Jaysen Saly

University of Phoenix


Problem Solution: TeraTech

TeraTech, a leader in Customer Relationship Management (CRM) solutions for pharmaceutical industry is challenge to move the company forward due to poor customer satisfaction and product rating. TeraTech, must find solutions to meet the customer demands by implementing an analytical and modeling tool to its existing product line at the same time increase sales. The trends in CRM pharmaceutical industry is changing and future trends show companies will rely heavily on analytical tool to achieve good return on investments from customers (Seget, 2004). Tera Tech must develop a marketing strategy and strategic operational plan with limited resources to maximize sales growth next year and forward. In this problem solution paper you will understand the need to include external resources to help TeraTech overcome its obstacles. A new product system with company strategy will be the foundation that defines the company’s future in becoming a leader in the CRM pharmaceutical industry.

Describe the Situation

Issue and Opportunity Identification

        TeraTech conducted customer research from its client and receive poor ratings on product and customer support. The ratings showed client’s dissatisfaction with the product due to inability to analyze its customers purchasing trends and produce reports. A TeraTech’s customer wrote, “Our business is changing rapidly.  Now more than ever our marketing team needs to be able to understand our customers across all interactions and to develop targeted marketing programs.  These efforts are just not possible with the TeraTech product” (TeraTech Customer Feedback, 2006). TeraTech is a leader in the Customer Relationship Management (CRM) solution in the pharmaceutical industry. Many competitors have initiated a new analytical tool system that will help companies maximize its return on investment from data management and marketing efforts. TeraTech needs to develop CRM analytical and modeling software to sustain competitive advantage and retain customer relationship. “The future of CRM will be driven by a series of key technological innovations and industry demands that have direct relevance to the development of future applications. Pharmaceutical companies can exploit these developments in order to gain greater returns from CRM. There will be greater integration between analytical and operational CRM in the future” (Seget, 2004 p 16).

        Jack Dwyer announced that he would like Christine Defalco (CMO) to research further into the CRM product. Christine and her team initiated her marketing plan and discovered challenges ahead. She discovered there is a budget and cannot hire anyone to join the team permanently for the project presented by Chris Riggs (VP HR). Wendy Martin (CTO) thinks her staff lacks the skills to develop the new software. Customer service support has low rating and Paul must find ways to improve that area. Partnership with another company is an option but has high risks involvement. Jack wants the project to be done with a one year deadline. Christine communicated with other executive team members and must help Jack Dwyer find the best solutions to resolve their issues.

Stakeholder Perspectives/Ethical Dilemmas

In the TeraTech scenario there are competing values between pharmaceutical clients of TeraTech and TeraTech. Pharmaceutical clients want to maximize their investments on analyzing and tracking customer trends. Some long-term clients are planning to stop using TeraTech CRM software applications due to inability to perform the job required. TeraTech goal is to find alternative solutions to maintain the business relationship with its clients. The company direction is to becoming an industry leader and building new CRM software that meet its clients’ needs. Both stakeholders face ethical dilemmas to sustain the customer relationship. The clients want to understand and track customer behavior and TeraTech has strict budget, limited resources, tight deadlines and internal organization challenges to satisfy the client.

Based on the customer research feedback Jack Dwyer (CEO) wants Christine Defalco (CMO) and Paul Ridner (SVP Customer Service) to develop a plan and research the pharmaceutical CRM industry. Christine is having her team develop a marketing mix with, product, price, promotion, and placement. They are researching pharmaceutical trends, conduct SWOT and competitive analysis (TeraTech Scenario, 2006). Christine and Paul is has issues regarding Jack’s request. They are challenged to meet an almost unrealistic deadline, work with tight budget and improve internal efficiencies. Both stakeholders group face ethical dilemmas. Jack need to do whatever it takes to sustain customer relationship and keep the company alive. Both Christine and Paul must find an alternative solution that meet Jack’s request and execute it successfully.

The leadership is concern for the future of the company and need all stakeholders involve in the strategic planning process. Employees are overworked uncertain of the company’s strategy and unaware of the situation. Both stakeholders need to communicate with one another its short-term and long-term goals for the company. The leaders need to create a corporate culture that values customer service and communicate to employees.

Frame the “Right” Problem

TereTech will become a global leader in Customer Relationship Management (CRM) pharmaceutical industry solutions by implementing effective strategies to remain competitive in its industry from maximizing usage and limited resource.

Describe the “End-State” Vision

TeraTech will be the global leader in the CRM pharmaceutical industry by offering advance technology against its competitors and the best CRM solutions to its clients through careful research and creating a customer service oriented culture internally.

Identify the Alternatives and Benchmarking Validation

        TereTech can learn from two major companies that has proven to be successful and unsuccessful by acquiring ideas and implementing in its organization. The benchmarking discuss about GM (General Motors), poor leadership that result them to lose money by ineffective communication. Additionally, Apple Inc benchmarking summary provides a successful idea to create customer service product and be an innovative company.

General Motors – (Poor Leadership , Unsuccessful)

        General Motors the largest U.S based car manufacturer similar to TeraTech are both having similar challenges within its industry. General Motors business is being impact by the economy in the U.S. due to the cost of fuel and energy crisis. Big cars in the automotive industry are viewed more costly and breaking consumers bank than small cars. The global competitive market is competitive because small cars produce by Japan are being an ideal and cheaper to operate. “The Japanese auto industry, which had been developing at home behind a protective wall that effectively kept out foreign competition, matured. The Japanese had learned how to manufacture small, high-quality, fuel efficient product as at relatively low cost for their own national market” (Gilmour, 1988).

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        General Motors recently reported losing $56 billion dollars in revenue due to the impact of this crisis. TeraTech need to find a competitive product line or customer solutions to remain the frontrunner in its industry. In 2006 Ford did a horrible job executing its strategy on the Ford focus product. The branches from North America and Europe had a disagreement with the design. Both completed two different designs and failed). Instead of coordinating and work with each other the leadership team failed and cost the company money. “"Ford did a terrible job executing on its strategies this year," says Lepsinger.”There's ...

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