Avengers Incorporated is one of the top wireless services in America’s. The company was founded in 2016 by several entrepreneurs at Cal State University of Los Angeles. It believes it can provide an affordable quality product with above average features for everyone. The company provides service and innovation to millions of customers with the agreement to have high standards in practicing corporate social responsibility. It is based in Manhattan Beach, California, Avengers US has expanded business in Pandau, India in 2017. It is one of the fastest growing company in America in Forbes 100 in less than three years.
The company’s vision is to expand not only as a business but as a company that changes the way the world does. To change through the years with innovation through our products. Create diversity among our customers and employees. To grow from the expansion of our company in places all over the globe.
To be an environmental friendly cell phone company where its users will not be harmed. Avengers Incorporated believes in continuously looking for innovative ways to improve its products and services. It also believes customers are the top priority and it provides top excellent customer services, and to grow and educate their agents to assist in leading high connection in communications.
Objectives-(Goals)-Chart of Preliminary & Final Weighting Factors
When Avengers Inc. was created, we aimed to produce high-quality products affordable to all. To do so, we set many goals to be able to reach our targets. From the beginning, we have focused on investing in training to create efficiency in our production line. By doing so, we would reduce production cost and decrease expenses which would allow us to produce high-quality products for a lower price than the competition.
Diverse revenue models-telecommunication is one of the industries that have many ventures which companies can invest in.
Fast growth- compared to other industries, the telecommunication industry is fast growing due to innovation within the industry.
The success of the product mix-telecommunication industry provides a range of products mix that has a track record of acceptability and high consumption in the market.
Brand recognition- telecommunication products have strong brand recognition compared to other industries.
High return on investment- although the telecommunication industry in has high investment costs, the returns are extremely high making it a prime investment option.
High costs of initial investments- the initial costs of investing in telecommunication industry are high.
Poor telecommunication infrastructure especially in the marginalized areas.
The government strongly regulates the market.
It has high barriers to entry to too high investment costs.
A range of investment opportunities including 3G and 4G telecommunication services.
Increased usage of cell phones and the internet all over the world creating demand.
Innovation gaps that can be invested in leading to growth and profitability.
Increased research and professionals in the field who have the potential to come up with new products and services.
Many telecommunication policies are created every day threatening the stability and future of the industry.
Changing political environment- changing political environments such as the trade war between US and China, Brexit impact on European Union as well as the instability of Middle East region poses a significant threat to telecommunication in the local and international market.
Unfair competition – this is with a case of cheap cell phones from China that is affecting competition in the international market.
The finance department of Avengers Inc. one of the core departments of the company that has significantly contributed to its growth and expansion. Some of the business strategy for the next two years include:
Cost control- this strategy is built to believe that company exists to make profits. Therefore, there is a need for measures no unnecessary costs through effective utilization of recourses, building strong relationships with suppliers as well as effective management of company’s overheads.
Liquidity management strategy- this strategy is aimed at ensuring that the company has adequate funds to meet the shorter obligations when they fall due. This will make the company avoid bankruptcy issues.
Risk management- this strategy aims to ensure that the company adequately mitigates the effects of unforeseen adverse events such as businesses risks, financial risks, disability risks, and operational risks among others.
Financing and investing alternatives- these are financial strategies that explore the alternative sources of funds for Avengers other than its core business and how this funds will be spent both for short term and long-term investments.
I am increasing of sales commission.
Emphasis on social marketing- Currently the company pays very little attention to social marketing. Social marketing is one of the most effective marketing approaches in the 21st century. Emphasis on social marketing will ensure that the products rich to many customers increase sales.
Production of quality products- Quality is what every customer is looking for especially in the telecommunication industry. quality cell phones will lead to more sales.
Creativity and innovation-this strategy will lead to the development of new products as well as differentiation of current products, increasing sales commission.
Increase marketing –marketing will create awareness about the product hence increasing sales and productivity
Product diversification- offering diversified products will create a competitive advantage leading to more sales and profitability.
Positive customer relationships-customers buy more and are likely to be loyal when the company creates and mutual relationships and maintains this relationship.This will result in higher sales and profitability.
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Increase conversion rates- to grow revenue, there is a need for the company to increase its ease and rate of converting the raw materials to finished goods.
Employ diverse marketing tactics- marketing is the key to business for it creates awareness about the existence of the company’s products. For effective growth of sales, the company will have to employ a combination of various marketing techniques.
Focus on reducing overhead costs- not all costs can be reduced, and the aim is not to avoid expenses but to take control of costs and ensure unnecessary costs are avoided.
Long-term shareholder value
The company has a significant issue of bonds to play it safe.
In addition, to increase long-term shareholder value, the company will expand its investments and diversify them to mitigate risks.
Sales and Marketing
From the analysis of financial statements of Avengers, its clear that the company has been making profits although the rate of growth is slow and unstable. The company is also exposed to liquidity risks as its cash ratio is low and its cash flow statement shows a low cash conversion rate. There is, therefore, need to lay down a plan that ensures that this risk to bankruptcy is mitigated as well as stability in profit growth maintained. Another concern from the financial statements has long Working Capita Cycle which exposes it to liquidity and other business risks. Therefore, the company should ensure that it gives its creditors less time to pay their debts and incorporate the use of discounts to encourage payments. To avoid liquidity problems, the company should maintain a liquidity ratio of 1:1.
Avengers has low adoption to marketing and mostly depends on personal selling and referral marketing to boost sells. The company will adopt a paid adverts such as newspapers and Television broadcasts as well as the use of medial social platforms like facebook, instagram, and tweeter to promote its products.
Research and Development
The company will engage in aggressive research for the new production methods, technologies as well as raw materials for cost-effective and high-quality products. Funds for research and development will be allocated at every year of budgeting.
Chief Executive Officer- the chief executive officer, is the chief decision-maker in the organization. He also acts as a leader by advising the board advocating for organizational changes, looks to the future for opportunities , ensure that staff is sufficient and up to date as well as formulating policies and planning recommendation. The CEO also oversees the operations and ensure that the organization complies to regulations and maintains positive relations with all stakeholders.
VP Marketing—The role of VP marketing includes formulating and implementing a comprehensive marketing plan to increase product awareness as well as setting both short term and long term goals. Also, VP marketing also prepares marketing budgets, and reports track the organizations marketing performance.
VP Operations-VP operations roles include policy formulations for the short term and long term organization’s operations, managing the daily operations and implementing plans from the board and CEO. The VP operations are responsible for ensuring that the daily routine activities run smoothly and report any issue to the CEO.
VP Finance- VP finance is responsible for directing and authorizing all aspects of accounting operations including payables, receivable and payroll. She is also accountable for fordirecting financial strategies,doing analysis and economic forecasts for the company.
VP HR- Responsible for ensuring that there is adequate personnel for daily operations, organizes for human resource development initiatives including training, organizes for the recruitment process as well as managing employee compensation system.
Controller- financial controller of avenger Inc. is responsible for ensuring that accounting allocations are done accordingly and that there is no misappropriation of the company’s funds. Besides, the controller also performs reconciliations and auditing functions.