[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]