Harman Kardon 2008 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2008 Harman Kardon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

4 Harman InternatIonal annual report 2008
Similar transformation characterized the company’s executive
management team during Fiscal Year 2008, with appointments
including Herbert Parker as Chief Financial Officer; John Stacey
as Chief Human Resources Officer; Richard Sorota as President,
Consumer Division; Dr. Klaus Blickle as CEO, Automotive Division;
and David Karch as Vice President of Operational Excellence. As
this annual report goes to press, Todd A. Suko is joining us as
Vice President, General Counsel and Secretary. These executives
strengthen key functional roles while adding deep expertise in areas
such as global footprint optimization, mergers and acquisitions,
governance, supply chain and sourcing, legal, human resources and brand management.
While executing on a record backlog of new automotive platform launches, Harman continues to enjoy the
confidence of prestigious customers. Project awards in fiscal year 2008 include new or extended contracts
from such customers as Audi, Ferrari and Mercedes. Ferrari also honored us with its prestigious Technology
Award for 2008. Successful project launches extended our penetration of the Asian markets at Subaru and
Ssangyong. We also formed an exclusive global alliance with UK-based Bowers & Wilkins, adding another
premium brand to our automotive infotainment portfolio.
During 2008, the Consumer division launched a number of innovations including new docking stations for
Apple® iPod® and iPhone™ products, a new line of premium aftermarket automotive speakers, and new home
theater solutions.
The Professional Division continues to serve an array of world-class entertainers and venues with its smart
audio products, enabled and integrated with our robust HiQnet™ communications protocol. 2008 events
such as the Academy Awards, NFL Super Bowl and NBA All Star Game featured Harman systems, while tour
artists including Celine Dion, Rod Stewart and Bob Dylan performed with our products. Harman systems were
installed in more than a dozen venues at the 2008 Summer Olympic Games in China and played a starring role
in the remarkable Olympic Opening and Closing Ceremonies from Beijing’s “Bird’s Nest” stadium.
Amidst these achievements, we recognize the need for continuous
and significant operational and structural improvements. It became
clear during Fiscal Year 2008 that our organization was not fully
equipped to execute cost effectively on its record business backlog.
We also concluded that the company lacked the clarity of a strong,
single voice in promoting its diverse product and brand range.
During May, we completed a comprehensive review of long-term
business strategy with the Harman Board. This blueprint recognizes
both challenges and opportunities, including more aggressive
penetration of emerging markets, global footprint optimization, and aligning our technology efforts with
evolving market trends. Harman is privileged to enjoy a large and diverse product portfolio that far surpasses
its competitors. We will leverage this advantage to provide customers with a rich and integrated experience
and to attract a greater share of their discretionary purchases.
To help drive profitable growth, Harman continues to invest in world-class innovation based on our deep
expertise in areas such as acoustics, signal processing, software, and systems integration. We have launched
a major market opportunity analysis and channel strategy for China, to accelerate the deployment of our