The hardware division
at BST had a rather hard time 1999. We were not able to sell all
our inventory, and as a result, lost money producing products that went
unused. This has been a reoccurring problem for BST but we hope to
have the problem taken care of soon. We realized early in the year
that we would have a surplus and have hired a team of expert market analysts
to assist in our attempts to predict market demand for our products.
Although it has been a tough year for the hardware division, there is a
silver lining to the economic cloud. That silver lining is the quality
BST is able to produce. We have devoted much energy and money to
the development of new innovations and to improving the quality of the
hardware we produce. We are now rank one of the top firms in product innovation
and quality in the industry. In order continue being a successful
firm we know we must dedicate even more to the innovation of products.
Another
advantage the hardware division enjoys is its foreign market. BST’s
hardware division is the only firm in the industry to export goods to Brazil.
This is a major edge in the technology industry. Often in high tech
markets the first company in dictates the direction of the market.
As the only firm in Brazil BST can establish itself and capture one hundred
percent of the market.
And though it may seem that the hardware division is in trouble, it is doing considerably better than in 1998. BST had a very bad year in 1998. Due to unfortunate circumstances and adverse economic conditions led to lower than expected sales and higher than expected costs. These adverse conditions caused the hardware division to record a meager net profit of -$535,000.
After the dismal performance in 1999 we realized we had to do something to turn the hardware division back into a profitable business. To do so, we reduced prices and raised our marketing expenditures to increase consumer awareness. We managed to bring about net profits in the hardware division, in 1999, to $143,000. This may seem like a small amount compared to other firms in the industry, but we had an increase in net profits of $678,000. This is the largest increase in net profits in the industry!
BST knows it has struggled and disappointed many this past year but next
year is looking up. Our past failures are only learning experiences
and offer extra incentive to excel and surpass expectations next year.
With the quality and technological edge in our favor and the major opportunities
of over seas markets BST’s hardware division is looking to be an industry
leader in the years to come.
