HISCO SUMMARY ANNUAL REPORT1CEO Letter1234, E Sheldon StreetPrescott, AZ 45689August 3, 2020Mr. Stan SloaneCEO, HISCO Company456 Sheldon StreetPrescott, AZ 7456Dear Mr. Sloane:HISCO is among the best companies that provide high-quality readers to hospitals. In an effort togrow the company further, there is need to change the company’s strategy and SWOT analysis.The company’s strategy is to produce as many readers as it can to meet consumer needs. However, there is need to improve on the quality of the readers manufactured to give the company a competitive advantage. According to Chen, Liang & Yao (2017), there exists a link between quality and profit. With this in mind, there is need to improve on the quality of products produced to earn the company higher profits. The company will work towards manufacturing products with minimal defects. The high-quality readers will have improved performance, features and an appealing look with an advanced product lifecycle. The improvements will be done gradually until the desired results are achieved. High-quality but affordable products will increase the company’s sales which in return will result to increased market share thus increased profits. Apart from changing the company’s strategy, the company’s SWOT analysis will be improved to enhance its success.
HISCO SUMMARY ANNUAL REPORT2HISCO needs to minimize manufacturing costs as it works on balancing its manufacturing capacity and market outreach. The reduction of operation or production costs will be supported by improvements in sales and marketing efforts. HISCO will break downits value chain for easier cost evaluation. High priority will be placed on customers because they are the main sources of income. HISCO will work on sustaining efforts geared towards maintaining high customer satisfactionHISCO’s performance in the market is highly influenced by engineering quality, quality of labor, prices, and marketing and advertising practicesStrengths 1.High manufacturing capacity. HISCO has invested in its manufacturing capacity to the point it can manufacture more readers that it can sell. 2.Excellent business environment. HISCO is operating in a business environment where there are opportunities and the completion to spur growth. 3.High-quality products. HISCO’sengineering capacity has enabled the company to manufacture readers of high quality in this initial phase of the product lifecycle.Weaknesses 1.Excessive manufacturing capacity. HISCO is facing challenges sustaining its high manufacturing capacity under the current limited market penetration. 2.Limited fiscal resources for investment. HISCO recorded losses of $130,000 and used up all its cash reserves or cash-at-hand while to sustain its manufacturing capacity. 3.Limited marketing skills. HISCO has a good quality product but companies such as Matex outperform in marketing their products in the market.