Finance & Law for Engineers Assignment Example | Topics and Well Written Essays - 500 words

Finance & Law for Engineers - Assignment Example 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