Question 1
AirSec Ltd. aims to become the market leader in the United Kingdom in the sector of technology security systems by 2020.
The company targets to increase our sales and revenue for five years from 2015 by at least 10 percent and proportionately cut costs by 5 percent.
The company aims to expand our workforce from 120 to 170 in a period of one year and enhance the quality and drive of the workforce through training, development, and reward incentives to attain growth and success.
AirSec Ltd also intends to improve customer service by providing superior customer experience and meet the needs of the esteemed customers.
The company's aim is to increase the annual profit by at least 6 percent in the next five years by delivering services and products that are essential to the customers.
Air Sec Ltd. Will continue to increase its commitment to the surrounding communities by decreasing the unemployment level by at least 3 percent and increasing the "Corporate Social Responsibility Budget" by 4 percent annually for five years.
The company also aims to maintain environmental sustainability by recycling 75 percent of the waste products for a 3-year time horizon.
The company aims to increase investment in the recruitment and training by 10 percent per year by retaining and recruiting the employees who have the capacity to deliver quality service and build customer relationships. This will help the company to increase its market share in the advanced security technology sector by 10 percent in the next two years.
Company's Mission Statement
The company intends to carry out research and undertake actions focused on improving the lives of individuals by providing quality and reliable security Unmanned Aerial Vehicles (UAV's). We aim to be the market leader in the advanced security systems industry in the United Kingdom by building highly skilled labor force and substantial customer relationships not only in the United Kingdom but also in the global market. The company will enhance the local community relations by developing an effective Corporate Social Responsibility to bring together the social enterprises, hospitals, schools, environmental groups, and other local stakeholders.
Question 2
A number of the strategies used in pricing are discussed below, stating both their merits and drawbacks. To begin with, we have the Cost plus Pricing Technique. This method of pricing unlike any other is profit-oriented. Here, a business adds a certain percentage onto the actual production cost of an item or service to make a profit (Baker, 2011, p.150). The advantage of this type of pricing is that it definitely guarantees a profit on every item or service sold. However, on the negative side, it does not guarantee that the customers are going to buy the product.
Next in line is the penetration pricing system. This is a technique business use when introducing new products. The product is introduced at a relatively lower price compared to the normal price to attract customers and increase sales even after the price hikes, which is its main merit (Hirschey, 2008, p.565). It holds a drawback in that once the special offer is over, the price increases. Competition pricing is the other pricing strategy whereby a business charges a similar price with its competitors to be at par and retain customers. Even though it is advantageous in that the business remains competitive, its demerit is that it loses profit for a period.
Price skimming is another technique where the business tends to take advantage of a unique product it possesses and price it a high price. Even though it has a disadvantage that the price is only high until competition arises, its merit is that it ensures high profits while competitors struggle to compete (Baker, 2011, p.66). The final and most common method of pricing is the promotional pricing strategy. Here, a business offers the product at a special price for a limited time before returning the price to normal. The affirmative side of this technique is that the business gets rid of excess stock. The negative side of this is that it only happens for a short time.
AirSec limited can employ two strategies discussed above in their pursuit to increase their sales in the UK as well as extend their market to a Non-European country such as India. Since the turnovers are gradually dropping in the UK, the business employs competition pricing strategy to ensure that they retain an increasing graph of turnover. This is the most appropriate method since it saves the business from losing customers to the external competition.
However, the business should employ the penetration strategy to India. This is because a number of businesses in India are not familiar with the technology yet and therefore some would take it as an unnecessary additional cost when the prices are high. However, pricing it lower at first gives the costumers the opportunity to afford the product and even adapt it to their business.
References
Baker, R. J. 2011. Implementing value pricing: A radical business model for professional firms. Hoboken, NJ: Wiley.
Hirschey, M., 2008. Fundamentals of managerial economics. Cengage Learning.
