Primary Goals of the Company
The central objective of our enterprise is to provide customers with high-quality products that meet their demands and expectations. We are planning to be the market leader of the security system sector in the UK as soon as possible, and then we need to expand and introduce our business idea internationally. Our company is determined to build long-term relationships with community members. Our expectation is to enter the market in India by 2020; the region has enormous potential, and the number of competitors is relatively small in the region.
Mission Statement
Quality and safety
A lot of attention is devoted to safety, and we are focused on the improvement of the experience for our clients. Therefore, we developed a high technology security system and equipped our drones with sensitive cameras that can respond perfectly even in dark conditions. Another important thing is that they have a modern system that can block or prevent intruders from accessing it.
Employee selection
We always take care to employ the best-qualified workers because they have an influence on the business and can determine whether it will be profitable or not. Furthermore, we are keen to hire a range of staff groups focused on management, research, professional engineers, and other vital workers such as delivery drivers and cleaners. Applications will be carefully reviewed, and we are willing to provide more than one hundred twenty job openings over the next year.
Future improvements
We are an ambitious company that aims to stay ahead of the competitors and to continue expanding, so we decided to investigate the export market in India because of their rapidly developing business sector. We are currently working on several new models that would meet the needs of clients and will go through several stages of testing before entering the new market.
Community
Our company is determined to build long-term relationships with community members. We acknowledge the importance of social responsibility, and we are willing to provide all the vital information related to our operations. One of the core aspects that differentiates our firm from many others is a high level of transparency. We are going to communicate with local companies, and we hope that our services would be helpful for the community.
Pricing Strategies
It is necessary to discuss a broad range of approaches that may be utilized by an enterprise when setting the price for a particular product. The penetration strategy is preferred when a market is already established and a firm is trying to get a competitive advantage by selling items rather cheaply. This technique is appropriate when consumers are sensitive to the price and an enterprise is determined to achieve acceptance (Ferrell & Hartline, 2010). A predatory strategy also should be highlighted, and the primary objective of this approach is to ensure that other businesses would not be capable of competing. The problem is that many believe that this method is not legal, and many complications could occur (Giocoli, 2014).
Firms charge the same amount as other companies do for similar devices if a market pricing has been chosen. A skimming approach is utilized when it is believed that customers will buy the product regardless of the high price, and it will be reduced over time depending on the market situation (Armstrong, Adam, Denize, & Kotler, 2014). Promotional campaigns are quite common in such cases. The unique aspect of discrimination pricing is that a business charges differently depending on the customer and the time. Commercial competition is also possible, and it is associated with constant reductions in price to gain an advantage over competitors (Mohr, Sengupta, & Slater, 2009).
Appropriate Strategy in the UK
Discriminating pricing should be used in the United Kingdom, but it may have to be changed. It is necessary to take advantage of the fact that the product is innovative and that the interest of the public is enormous (Swann, 2014). Several limitations that regulate the use of drones in the country are currently present, and these complicate the situation because the ways in which they may be exploited are rather limited. Price war strategy may be selected in this case because other companies are also focused on this sector and because other products have unique features. Therefore, it is reasonable to examine the situation on the market and to modify the approach when it is required.
Appropriate Strategy in India
It is possible to state that discrimination pricing is the most reasonable approach in this case because it would help to establish stable revenue. The need to devote enormous attention to the promotion and education of the consumers should not be overlooked, because the technologies offered can be regarded as a breakthrough (Ramanujam & Tacke, 2016). The value of the product should be taken into account, and it is much more important to business clients because they want to protect their property. Furthermore, a discriminatory approach is appropriate and should be applied in this case.
Another aspect that should be highlighted is that it is reasonable to provide discounts to businesses if they are ordering several devices at once or are regular clients. Also, these products could have several additional features that may not be viewed by domestic customers as important but could be vital for businesses. It is likely that many consumers would not be able to afford the current product. Therefore, it would be reasonable to consider the development of another model that would be cheaper, but the level of safety should not be changed, because it is an essential part of the image of the enterprise. Price promotions also should be considered, and they are used to deal with consumer resistance (Mohr, Sengupta, & Slater, 2009).
Benchmarking
It is imperative to mention that managers are primarily focused on such aspects as improving teamwork, setting appropriate tasks, distributing work efficiently, and others. Five professionals are currently employed, and every single one has a set of responsibilities and monitors assigned groups of workers. One may argue that it is not an easy task to manage the performance levels of managers, but it is possible, however, to identify connections between several indicators (Austin, 2013). Each manager must be focused on the achievement of the best results. Therefore, productivity measure is the number of the product produced over a particular period. It is reasonable to set standards for the performance of the team. The most attention should be devoted to the quality of work, and the number of wasted resources should be reduced. Moreover, it is possible to track changes in the measures and determine if the progress that has been shown is significant or not. Also, time limits should be set for particular tasks, and objectives should also be reached promptly.
The efficiency of the Tool
It is hard to argue with the fact that benchmarking has numerous benefits. The issue that many enterprises have to deal with is that it may be hard to assess the quality of the work of managers. Benchmarking is quite useful in this case because particular indicators can be compared. It may not be reasonable to consider penalties if performance levels are not satisfactory in some situations, because it could be caused by various internal and external factors, all of which should be examined. Additionally, the ones that show outstanding results could be rewarded, and it would make them much more motivated. The primary purpose of benchmarking is to ensure that performance increases in the long term, and it is entirely possible if measures are gradually increased.
The biggest problem that many companies face is that it is not an easy task to determine correct proportions between supervisors and the staff, and benchmarking is one of the tools that may be exploited to justify such decisions. Also, numerous applications could be selected depending on the situation (Bogetoft & Otto, 2010). It is possible to state that a direct relationship between productivity and benchmarking is present because individuals are aware of the fact that their performance is being monitored, and it makes them much more motivated (Bogetoft, 2013). Also, it is beneficial to involve managers in the whole process; such knowledge would help them to understand which areas are problematic and should be improved. Therefore, it is a useful tool when it comes to employee appraisals because all the data regarding their work is available, and it is possible to compare measures that are viewed as the most important and discipline managers if it is lower than expected (Bogetoft, 2013).
The complications
It is necessary to understand that numerous complications may occur when doing business in India because of its unique culture and monitoring by the government. The range of policies that are focused on the protection of domestic businesses also complicates the situation. Such aspects as customs tariffs are quite problematic, and the lack of transparency also plays a significant role (Tiku, 2014). However, these complications have begun to reduce over the last few years because the government has acknowledged that it is a limitation that hurts the economy in the long term. The licensing procedure also should be mentioned, and a commercial presence is regarded as problematic. The biggest difficulties that enterprises have to address are construction permits, taxes, and issues with contracts (Kowalski & Dihel, 2009). Also, it is not an easy task to start a business, because a firm will have to go through numerous procedures. Not enough attention is devoted to the protection of intellectual property, and trade secrets are also not viewed as important (Kumar & Mishra, 2015). This aspect is problematic for AirSec Ltd because the product is quite innovative, and the creators want particular information to stay confidential.
However, this area is poorly regulated in India, and a former employee may disclose confidential information to competitors. Another issue that may have an enormous impact on the business is that many customers regard low price as a critical factor that affects their decision-making when making purchases. Therefore, it would be difficult to gain a competitive advantage if an enterprise focuses only on quality. One of the most significant aspects that are frequently overlooked is the difference in cultures. All the traditions and religions should be respected, and it would be necessary to analyze available resources to avoid complications. Communication patterns are also quite different, and this is an aspect that should be acknowledged. Therefore, it would be reasonable to modify the approach that is currently used. Overall, it is possible to state that numerous barriers are currently present. The government is determined to reduce some of the limitations, but the process is rather slow, and it is entirely possible that it could take much longer. Also, new barriers have been recently introduced to support export. Such aspects as special economic zones and establishment policies should be reviewed to get a better understanding of what issues the company may have to deal with in India (OECD, 2012).
Risks
Any incidents related to the malfunction of the product can be quite problematic when it has recently entered the market and is not yet regarded as a reliable brand. The fact that police officers can be involved in this case is especially problematic because the impact on the public’s opinion will be enormous. The biggest problem occurs when a company cannot come up with a solution to the problem, and it is likely that many customers will demand a refund. It is necessary to understand that the enterprise will be responsible for any possible harm because it is quite evident that it is the fault of developers. Moreover, product liability laws could vary from one region to another, and it would be reasonable to employ a professional that is competent when it comes to such issues (Daller, 2013). Another risk that should not be overlooked is that a competitor could introduce a product that does not have such problems, yet a loss of valuable clients is possible. Customer loyalty is of utmost importance for a product that has been recently introduced, and complications should be avoided if a firm has invested funds to support the development of new models (Venuvinod, 2011).
Impact on the Company
It is understandable that such an issue is rather minor compared to greater concerns, but it could hurt the business in the long term because the enterprise is attempting to become one of the leaders in this area. The damage caused by an incident can be enormous because it will be difficult to recover customers’ trust. The fact that the product is relatively new is especially problematic because clients are not aware of what to expect. Another aspect that should be highlighted is that the popularity of the Internet and social media has an enormous impact on most businesses. Therefore, any reviews that would criticize the device can hurt the business in the long term because individuals are now in the habit of looking for information about products on websites before making purchases. The damage to the firm could be tremendous, and it could be viewed as a failed business if appropriate measures are not taken quickly.
Course of Action
The malfunction of the product is an enormous issue that should have been considered by the developers because consequences can be severe; fatalities are even possible. Also, it is paramount to contact all the clients and inform them about the issue to avoid penalties for the failure to warn. Moreover, the most attention should be devoted to the investigation of the problem, and it is necessary to calculate the price and resources needed for the modification; this should be viewed as an outstanding opportunity to improve future models of the product. Additionally, any enterprise should be willing to provide at least a small compensation, such as discounts or coupons, to maintain the reputation of the company. Consumers must understand that such technologies are quite complicated and that it is nearly impossible to avoid all possible errors.
References
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