1. Firstly, read this case carefully looking for problems, decisions and action points – you can use the following schema:
a. Identify all the possible problems faced by Terra Cog – you could try listing the problems from the point of view of each key player
b. Frame one or two problems (out of the identified ones) as the ‘key business problem’
c. Think of ways of dealing with the problem – i.e. possible options that offer a solution – there could be various ways to solve a problem. These ‘ways of dealing’ or ‘possible solutions’ will involve certain ‘decisions’.
d. List the ‘decision options’ that are mapped to these solutions – i.e. you’d need to opt for certain decisions – and implement such recommended decisions through ‘action points’ to lead to certain ‘solutions to the problem’.
e. To decide the option that you recommend you’ll have to evaluate other options according to certain criteria that you’ll need to derive from the ‘key problem’ and the ‘objectives’ that you have set to respond to the situation. (e.g. If your ‘problem’ in a business is ‘high cost of production’ then your managerial objective will be ‘reducing the cost of production.’ From this you can derive the criteria ‘propensity to reduce cost of production’ – any ‘decision option’ that fares well when evaluated with respect to the criteria of ‘propensity to reduce costs’ will help solve the problem of ‘high cost of production.)
[Note: There is no ‘right answer’ or ‘preferred answer’! You can take any position as long as you can logically, clearly and cogently present your point of view.]
2. In the Terra Cog case the relevant questions are:
a. What is the ‘key problem’ that Terra Cog – as a company is dealing with here? Is this ...