Sunbeam 2007 Annual Report Download - page 17

segments’ product lines to minimize the number of manufacturing functions and the frequency of material
handling. We also utilize, where practical, a flexible process which uses cellular manufacturing to allow a
continuous flow of parts with minimal set up time. Our efficient and automated plastic cutlery manufacturing and
firelog and firestarter operations enable us to produce, count and package plastic cutlery and produce and
package firelogs and firestarters ready for retail distribution with minimal labor costs. In our manufacturing
facility in China, we focus on manufacturing proprietary products and products where our expertise provides a
lower production cost.
We also utilize an efficient outsourced manufacturing network of suppliers for certain of our products.
Many of these relationships are long-term, affording us increased flexibility and stability in our operations. This
diverse network allows us to maintain multiple sources of quality products while keeping price points
competitive.
We continuously implement cost-saving initiatives that have rationalized certain operating and
manufacturing facilities for products, as well as increased outsourcing of certain of our products where it is most
cost effective.
Proprietary and Patented Technology. We believe that we have proprietary expertise in the design,
development and manufacture of certain of our products supported by patented technology, affording us a
competitive advantage and enabling us to maintain our market leading positions. We own patents on our
FoodSaver®home vacuum packaging systems. We believe this patent protection and our well-developed
manufacturing relationships have enabled us to become a market leader within the home vacuum packaging
category. For our home canning products, we have developed a proprietary two-piece closure system
incorporating a plastisol sealant that differentiates our jar lids from those of competitors. For our playing card
manufacturing process, we have a proprietary method that is employed to manufacture card stock and coating,
which gives our products the unique “snap,” “slip” and “shuffle” users demand for playing cards. We have a
number of patents in the slow-cooker area which we believe distinguish us from our competitors.
Proven and Incentivized Management Team. Our management team has a proven track record of successful
management with positive operating and shareholder results. Our executive corporate management team is led by
Martin E. Franklin, our Chairman and Chief Executive Officer, Ian G.H. Ashken, our Vice Chairman and Chief
Financial Officer, and James E. Lillie, our President and Chief Operating Officer. Our primary operating
segments are led by executives with extensive experience in the branded consumer products markets.
Business Strategy
Our objective is to increase profitability, cash flow and revenue while enhancing our position as a leading
manufacturer, marketer and distributor of branded consumer products used in and around the home and “home
away from home.” Our strategy for achieving these objectives includes the following key elements:
Further Penetrate Existing Distribution Channels. We seek to further penetrate existing distribution
channels to drive organic growth by leveraging our strong existing customer relationships and attracting new
customers. We intend to further penetrate existing customers by continuing to:
• provide quality products;
• fulfill logistical requirements and volume demands efficiently and consistently;
• provide comprehensive product support from design to after-market customer service;
• cross-sell our brands across various business segments to our extensive combined customer bases;
• leverage strong established European, Latin American and Pacific Rim distribution channels; and
• establish new distribution channels through our subsidiaries in China and India.
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