Air UK's Expansion: Investment Analysis, Market Efficiency & Risk

This case study delves into the investment analysis of Air UK's proposed business expansion, targeting the upper-class market segment. It explores portfolio management strategies for minimizing risk and maximizing profits, considering different customer risk profiles. The analysis covers various funding sources for the expansion, including retained earnings, bank savings, and share offerings. Key principles of investment theory, such as risk identification and goal setting, are examined, along with market analysis and efficiency considerations. The study assesses competition, potential returns on investment, and the overall feasibility of Air UK's expansion plans, concluding that this strategic move could significantly enhance the company's growth and customer base. Desklib offers a wealth of resources, including similar case studies and solved assignments, to aid students in their academic pursuits.

INVESTMENT
ANALYSIS
[AIR UK]

Table of content
 INTRODUCTION
 Portfolio management based on customer profile and needs
 Portfolio management
 Types of saving and investment
 Principles of investment theory
 Concept of market analysis and efficiency
 CONCLUSION
 REFERENCES

INTRODUCTION
 Business expansion is a practice where the organisation get to maximise its existing services of products by
introducing the new unit or enter into the brand new market.
 This presentation is based on the case study of Air UK.
 The organisation is looking forward to expand its services by attracting the new customer area.
 Henceforth, the issues the company will face in London Stock Exchange in against of taking this decision.
 Portfolio management will further evaluate by the organisation.
 Different types of saving that company will use in against to successfully launch the business idea.
 Furthermore, principle of investment theory will also discus in this project and evaluation will be done over the use
of securities.
 Demonstration will be done over the concept of market analysis and efficiency.

Portfolio management based on customer profile and needs

Portfolio management with regard to investment means minimizing the risk
involved in a particular investment avenue and accordingly, the chances of
making profits gets increased.

Customer profile and needs: Customer profile with respect to investment can be
understood on the basis of their risk taking capabilities and willingness.
 There are three types of customer profile with reference to risk taking
capabilities while making investment:

Risk taking: Customers belonging from this category are generally high risk
takers who prefer to make investment risky assets.

Risk averse: Customers who are risk averse are keen towards avoiding risks and
worried about losing their capital invested.

Moderate: Such customers are not much worried about losing their capital and
even can't ignore the risk involved. Both risk free and risky assets can be
included in the portfolio of these customers.

Portfolio management
 Portfolio management is a practices that involve selection, prioritisation and control of an organisation programs and
project.
 Currently Air UK is planning to expand its service by entering into the new aircraft segment that will target to upper
class cu7stomer base.
 This is important that the organisation formulate and design effective marketing campaign that can target to the
customer base.
 The new project will target the upper class economic background of customer that will require the high level of
postposition of products and services under respective target market.
 Further the company will highlight all its services that will be alocate3d tio its customer so that more customer can
engaged with the organisation.
 The branding become an important part of the business and especially for the Air UK who is currently offering its
services to the middle class economic background of customers.

Types of saving and investment
 The business expansion plan of company will consider the level of investment in
the different operations and functional areas associated with the venture.
 The company will be needed to use the retrained earning, saving in bank, raise
funds through selling shares and such like of sources.
 All the different funding source will support and empower the business venture
for enhancing the capital requirement.
 The business expansion plan of company will be requiring the huge capital
investment that needed to undertake with the use of different savings of
company.
 In order to raise or generate funds bank loan is another potential option that
would allow the business venture to mitigate the funding requirement of firm.

Principles of investment theory
 The identification of risk is among the potential principle related to the investment theory.
 This involve identifying the risk involve in the business expansion decision is taken.
 The setting up of goal is important fro the organisation.
 Setting right goal for the ROI make the investment look more feasible for the business venture.
 Setting up clear target will strengthen the company to overcome all its risk.
 Formation of risk plan.
 This will allow the business house to mitigate all different risk involve in the investment entertain by organisation.

Concept of market analysis and efficiency
 This is the point where company need to analysis the whole market.
 Assessing the competition in the market is one of the core aspect and
part of analysing the market.
 Further in order to assess the efficiency Air UK must evaluate about
the potential level of funds that will raise by the organisation in
process to channelise the all different business operations.
 Assessing the potential return on investment is made is among the
key approach that would support the business venture for assessing
the market and efficiency of investment made in project.

CONCLUSION
 Air UK is planning to expand its business operations.
 The decision will target to upper class economic background of customers in market.
 This decision will certain raise the customer base of the business venture that will further allow and empower the
company to maximise the business growth and development need of company.

REFERENCES
 Chandra, P., 2017. Investment analysis and portfolio management. McGraw-hill
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 Fu, X. and Peoples, J. eds., 2018.
Airline Economics in Asia. Emerald Group
Publishing.
 Heinz, S. and O’Connell, J. F., 2017. The evolution of African airline business
models. In
The economics and political economy of African air transport (pp.
117-136). Routledge.
 Knorr, A., 2019. Big Data, Customer Relationship and Revenue Management in
the Airline Industry: What Future Role for Frequent Flyer Programs?.
Review of
Integrative Business and Economics Research. 8(2). pp.38-51.
 Meichsner, N. A., O'Connell, J. F. and Warnock-Smith, D., 2018. The future for
African air transport: Learning from Ethiopian Airlines.
Journal of Transport
Geography. 71
. pp.182-197.