Problem Solution: Teratech

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 company’s 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, TeraTech’s fourth quarter sales fell significantly, which concerns the company’s CEO. TeraTech’s 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.

TeraTech’s 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 company’s clients moving to TeraTech’s 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 company’s sales growth slowed due to customer dissatisfaction and increased competition. Second, TeraTech’s competitors have the analytical product the company’s 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 TeraTech’s 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 company’s current client base as well as attract new customers. Third, TeraTech’s new product can improve the pharmaceutical industry’s 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 TeraTech’s competitors. Additionally, the company’s 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.

TeraTech’s investors are also concerned about the company’s growth rate. The investors have taken pleasure in the company’s 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