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Finance & law for engineers

Insert here> Insert 13th December, Review of Tellit Communications PLC progress
Telit Communications PLC has made significant steps towards achievement of its organizational goals. The company has experienced significant growth both in revenues, profit and acquisitions. The strategies to achieve the organizational objectives appear to be working due to the positive results reported in the financial year ended 2013. Telit posted the first significant revenues ($9. 8 million) from m2mAir, Platform as a Service (PaaS) and other services.
One of the business strategies is to increase the overall business base alongside increasing revenue. In order to achieve this Telit is currently seeking to grow its market for the M2M technology. The company is seeking to identify with the technology and be a major dealer with this M2M technology in the short run. This has had the effect increasing gross margin from 37. 1% to 38. 2% as a result of redesigning operations involving M2M technology. Telit has a wide distribution network for the M2M technology which has over five thousand dealers distributed worldwide. The company’s mode of dealership is to contact customers directly or through the dealers. Over the year, Telit recruited more employees all over the world. The 17. 3% increase in revenues can be attributed to the efficiency of this distribution network. The new employees and dealers will be responsible with maintaining good relationship with clients, hence steady revenue. All this was done as part of the strategy to increase the company’s market base whose effect will be increased revenues (Telit Communications, 2013).
Recently, Telit has made some acquisitions and is in the process of making more acquisitions. In its growth strategy, Telit wants to diversify its products. The company has invested in seven research and development centers that have the responsibility of coming up with new competitive products as well as innovatively improve the existing products. This had the result of an increase in research and development expenses from four million dollars to twenty four million dollars. Telit has already acquired ILS Technology LLC which will offer complementary contribution to the company’s growth strategy. ILST will offer services and products that will be used to connect M2M devices to the existing clients’ systems. Alongside ILST, the company has also acquired CrossBridge Solutions that deals with mobile data connectivity. This acquisition will assist the company to tap and properly establish itself in the Internet of Things (IoT) business. These acquisitions cost the company eleven million dollars. Previously the funds used for acquisitions had been planned to pay off the company’s debts which stood at eleven million and seven hundred thousand dollars. This means that the company’s debt could have been reduced to seven hundred thousand dollars as at the end of the last financial year. Recently this business has shown upward trends that are an indication of potential business that could contribute to Telit’s revenues. Telit also intends to acquire NXP’s ATOP section and diversify its investments into the motor vehicle industry. The automotive business section will be offering solutions to vehicle manufacturers on their different needs (Telit Communications, 2013).
Telit aims at being the leader in EMEA with its GNSS products. In the current year, the company was second according to the rankings and wants to improve on this. Telit is in the process of increasing its products base and double the number of its products. The research and development centres will come in handy in achieving increased products. When the acquisition processes for some of the company’s subsidiaries are over, Telit will be able to effectively diversify and increase its product base. The company’s dealers and new employees will be used to distribute and market these new products so that the company achieves the market dominance levels in its targets (Telit Communications, 2013).
In conclusion, Telit is has put in place an organizational structure that allows for a lot of dynamism. The advantage for this is that, Telit will always be flexible to changes in processes when need be. Some of the activities and process mentioned above have been strategically designed with the view of achieving Telit’s business goals.
References
Telit Communications PLC. 2013. About Us: Financial Information. Available at:< http://www. telit. com/about-us/investor-information/financial-information/> Accessed December 13, 2014
Telit Communications PLC. 2013. About Us: Recent Acquisitions. Available at:< http://www. telit. com/about-us/investor-information/recent-acquisitions/> Accessed 13 December 2014
Telit Communications PLC. 2013. m2m AirCloud. Available at:< http://www. telit. com/services/m2mair-cloud/overview/> Accessed 13 December 2014
Telit Communications PLC. 2013 Telit Annual Report . London: Telit Worldwide.
Telit Communications PLC. 2013 Chief Executive’s Statement, EMEA. London: Telit Worldwide.

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