1.1. If Gainesboro achieved a 15 % compound rate of growth through 2011 , the company could reach $ 2.0 billion in sales and $ 160 million in net income
1.2. In order to achieve that growth goal , Gainesboro management proposed a strategy relying on three key points
1.3. First , the mix of production would shift substantially CAD / CAM and peripheral products on the cutting edge of industrial technology
1.4. Second , the company would expand aggressively in the international arena , whence it hoped to obtain half of its sales and profits by 2011
1.5. Third , the company would expand through joint ventures and acquisitions of small software companies
2. DIVIDEND POLICY
2.1. 1-Before 1999: both earnings and dividends per share had grown at a relatively steady pace
2.2. 2- 2003:dividends were pared back to $0.25
2.3. 3- 2004:the board of directors declared a payout of $0.25 a share, Also, the largest per-share earnings loss in the firm's history
2.4. 4- 2005: Swenson contemplated her choices from among the three possible A- Zero- dividend payout: This strategic emphasis on advanced technologies and CAD/CAM, and reflected the huge cash requirements of such a move B- 40% strategydividend restore the firm to an implied annual dividend payment of $0.80 a share, Proponents of this policy argued that such an announcement was justified by expected increases in orders and sales C- Residual-dividend payout: A few finance person department argued that Gainesboro should pay dividends only after it had funded all the projects that offered positive net present values (NPV).
2.5. 5- 2011:the forecast assumed that the firm's net margin would hover between 4% and 6% over the next six years, and then increase to 8% Which he firm's operating executives believed that this increase in profitability was consistent with economies of scale
3. Image advertising and conclusion
3.1. Image advertising and name change campaign – Yes because Positive influence on shareholders by giving clear growth prospects
3.2. The new name will better reflect company new image
3.3. New name will focus in core business operation CAD/CAM
3.4. Signal to shareholders that company commit to future growth and international expanding strategy
4. BACKGROUND
4.1. 1. Starting 2003 their dividend decrease. 2. However in 2004 the BOD declared a small dividend. 3. In 2005 they declared no dividend but the BOD resume payment in the same year.
5. THE COMPANY
5.1. 1. Gainesboro business nature is manufacturing 2. In 1980 entered in software industry (CAD/CAM) 3. CAD/CAM equipment and software are main revenue 4. Leave behind in CAD/CAM industry (autodesk, synopsys) 5. Revenue significant drop during 1998 - 2004 6. Focused to do R&D and Restructuring 7. Developed Artificial Workforce
