Capsim

Overall Strategy Description: Over the next six years, Baldwin will transition from an indistinct member of the sensor industry to a leader in cutting-edge products, serving the needs of two or more high-end, high-tech sectors, while also maintaining a presence in the traditional sensor sector. We anticipate abandoning the low-end sector and our product “Bead” at that time, based on anticipated weighting by our competition. This will allow us to focus our resources on cutting- edge products. We will support long-term costs reduction; Baldwin has developed strategies in R&D, human resources, and finance. Our first strategy is to reduce the MTBF as much as the segment will tolerate. This is relatively inexpensive to accomplish and results in reduced material costs. Next, we will invest early in automation where appropriate.

Our goal for each R & D project is to get the product to market before the end of the year. This will be easiest for current products that are only updated. For new products, we will seek to ensure they are brought to market as quickly as possible, while attaining customers’ strict requirements. We plan to spend at the highest levels per product for the specific media outlet with the highest ROI. To raise capital, Baldwin will balance equity and debt in a ratio of 40:60. This ratio will allow Baldwin to grow briskly without eroding ROE or expending unnecessary resources repaying debt and interest.

We anticipate keeping a product in either the size or performance segment as well, depending on early reaction of our competition. Therefore, we are allocating some promotion dollars to “Buddy” and “Bold” to sustain their current levels. We anticipate that the size sector will become our third targeted segment due to favorable margins and have therefore chosen to contribute slightly more to the promotion budget of “Buddy.” This will make it easier for “Buddy” to reach its awareness/accessibility targets in year two. We expect to exit the...