| [00:01.865] |
Well, now it's all over, |
| [00:03.042] |
I can only hope we've learnt the right lessons from the experience. |
| [00:06.408] |
Although the consultants at the time urged caution, |
| [00:09.752] |
the board were sure of the plan. After all, |
| [00:12.856] |
it was the sort of thing they'd pulled off before, |
| [00:15.648] |
and ploughed ahead with the launch of the new division. |
| [00:19.024] |
But the board wouldn't accept that the predicted boom in these new overseas markets |
| [00:24.248] |
was bound to be unstable |
| [00:26.248] |
because of likely fluctuations in currency rates and share prices, |
| [00:30.466] |
and that's where it all came unstuck. |
| [00:32.560] |
They reacted sensibly, though, |
| [00:35.464] |
and now we have established a good joint venture there, |
| [00:38.497] |
which is a better bet than going it alone, |
| [00:40.840] |
or slashing costs all over the place and laying people off in a panic. |
| [00:45.136] |
In the end, you'd have to say we had a lucky escape. |
| [00:48.528] |
I mean, it could have been a lot worse. |
| [00:51.320] |
It's very difficult to know where your brand is really positioned. |
| [00:54.625] |
We've always accepted |
| [00:55.585] |
that our research almost inevitably will be running a bit behind. |
| [00:59.448] |
Consumer tastes change so quickly these days, |
| [01:02.504] |
and that's where we suffered, |
| [01:04.792] |
and lost market share. |
| [01:06.088] |
The directors, |
| [01:07.864] |
once it was clear what was happening, |
| [01:09.912] |
attacked the problem and looked at various options. |
| [01:12.841] |
They could have looked to generate revenues with a share issue, |
| [01:15.896] |
but I think they were right to go for clipping back |
| [01:18.192] |
by reducing expenditure wherever possible. |
| [01:21.120] |
You're better placed to regroup with a tight ship. |
| [01:23.992] |
The plans to develop higher quality products |
| [01:26.312] |
for the future look pretty plausible now. |
| [01:28.008] |
|