The inter department conflicts add to the dilemma. The sales team headed by Ed Prior feels the new product Aerial should be priced below $425 to capture the lost market share to the competitors. The design team headed by Allen Roth, redesigned within the existing GPS platform so as to speed up the development process and avoid costs of new moldings and major configurations. As per their estimate of the pricing team, the price for sale would, at the minimum, be $475. The price is quite too high for the sales team to consider. The design team has pressed the production team to reconsider the price estimates; otherwise this can force the sales team to reconsider how to position the product. The sales team has pressed the design team to redesign the product considering the price. Each team is trying to put the onus on the other department to bail them out of the problem.
Each one is more concerned about his/her individual goals which are not helping solving the problem either.
Allen Roth, as the director of Design & Development was entrusted with the responsibility of reducing costs to the