Andijan Machine Building Institute Faculity of Mechanical Technology major of Technological machine and equipments 22 group course First name : muhammadqodir last name: obidjonov

A New Philosophy for 1990

• A New Philosophy for 1990
• Ten years of startling growth did not come without problems, however. As Burke explained in a 1996 Capital Times (Madison, Wisconsin) interview, "In all fairness, Bevill [Hogg, company cofounder] was more of a dreamer than a manager." Although sales remained solid, Trek began to experience difficulties in a number of areas. Unsold inventory began to pile up, and as a result the company was losing money. With morale nearing rock bottom, Burke decided to take over the day-to-day management of the company. He instituted a "back to basics" approach, emphasizing sensible business practices and quality service. His new mission statement had four components: "Produce a quality product at a competitive price, deliver it on time in a positive environment."
• Burke's new approach began to pay off quickly. Improved efficiency and marketing, combined with Trek's ongoing reputation for turning out quality products, breathed new life into the company's sagging bottom line. Sales doubled in each of the next three years. In 1987 Trek successfully introduced a new line of mountain bikes, and their popularity helped the company sell a total of about 100,000 bicycles in 1988.

Trek continued to find innovative ways to make money during the last years of the 1980s. In 1988 the company introduced a line of bicycling apparel. The following year, Trek entered the stationary bicycle market with Trek Fitness bikes. In 1989 the Jazz line of children's bicycles were introduced, and the company opened subsidiaries in Great Britain and Germany. Within five years, international sales accounted for about 35 percent of the company's business. By 1990 mountain bikes made up nearly half the bicycles sold in the United States, and Trek was prepared to claim a strong share of those sales. The company sold 350,000 bikes altogether that year. Trek's sales grew to about $175 million for fiscal 1991, and the company had about 700 employees by that time.

• Trek continued to find innovative ways to make money during the last years of the 1980s. In 1988 the company introduced a line of bicycling apparel. The following year, Trek entered the stationary bicycle market with Trek Fitness bikes. In 1989 the Jazz line of children's bicycles were introduced, and the company opened subsidiaries in Great Britain and Germany. Within five years, international sales accounted for about 35 percent of the company's business. By 1990 mountain bikes made up nearly half the bicycles sold in the United States, and Trek was prepared to claim a strong share of those sales. The company sold 350,000 bikes altogether that year. Trek's sales grew to about $175 million for fiscal 1991, and the company had about 700 employees by that time.