Our main thoughts, as we continue, remain that profits should come before market growth, whenever the choice occurs. As well, the team realizes that consistently growing revenues will allow for appropriate profits, while paying into the area of corporate responsibility. While the entry-level camera contributes to higher revenue, the multi feature camera leads to a higher profit margin. Therefore, BroadScope continues to prioritize development and marketing for the multi feature camera, while not jeopardizing the entry-level cameras outlook. Quality improvements will continue gradually, as the increase in revenues allows. The thinking here is that a shift from entry-level to multi feature development expenses should help to emphasize the focus on the higher margin products of the brand. As the team has observed, the competition has placed a high emphasis on marketing and higher prices. We are not certain that this is sustainable; however, adjustments have closed the gap going into year seven. In addition to profits, driven by sales, the investors and board will expect results relating to stock price, credit rating, and image rating. The management team will continue to balance these areas. For example, we have adjusted investments directed at corporate responsibility, the environment, and employee interests. In the financial area, management will ensure that credit does not drain on cash flow, and that shares outstanding are at the appropriate level. We feel that currently, the dividends match expectations; however, we look to buy back some shares in the coming years.
Year Seven Decisions
The team continues to de-emphasize Latin America, as this is the most challenging region, with a low percentage of revenue. Therefore, we maintain reduced advertising, with increased pricing to account for higher import expenses. To offset some of this decision, we have increased the length of promotions to two weeks. In line with quality, the team has...
Please join StudyMode to read the full document