Baldwin Financial Case

This report is being delivered to Baldwin’s Board of Directors at the end of this fiscal year to emphasize the three main pillars of the company’s strategic operations during the time span of 2017-2024. As identified in this report, the three most crucial components to our success have been: production, finance and R&D. This report gives an analysis of how our most important functions played in to our strategy, operations and eventual successes and downfalls. Regardless of our success over the time span in question, the area within Baldwin’s operations that could have achieved better performance and in return helped the overall health of the company was production. As indicated in figure 1.1 in the appendix our production greatly exceeds our

Our goal here was to achieve as much market share as possible through investment and innovation in our products. Specifically, we aimed to take over the traditional, low end, and high-end segments. The reasoning behind this strategy was that the low-end segment had the highest demand for units in the market, the high end had the most lucrative profit margin potential because of its high price point, the traditional segment had both high demand and good profit margin potential. Furthermore, Baldwin decided in 2020 to phase out the size segment of its product arsenal because it wasn’t meeting metric standards compared to the other segments (Capsim). Our company decided to keep but not add to its performance segment because it was managing to keep up but wasn’t excelling. For each of Baldwins products the first thing we look to optimize is reliability or mean time before failure. Secondly, we continuously monitor the demand for performance and size for all product categories we operate in with the goal of keeping customer satisfaction high which drives sales. While this process is expensive, we were able to manage such investments using the financially strategy explained above. We decided it was worthwhile to invest so heavily in additionally because none of our competitors were doing the same allowing us to capture significant amounts of market share. Illustrated by figure 3.1, Baldwin was able to achieve year by year growth in market share nearly perfectly across all segments. Figure 3.2 illustrates the impact this type of R&D investment had on our margins resulting in consistent improvement each year (Capsim). Alas, Baldwin could have captured even more of the market had we not phased out the size segment and added more products to the performance segment which we plan to do in the