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Assi Essay

765 words - 4 pages

Amstrad is a company, founded by Entrepreneur Alan Sugar in 1968 which started by trading consumer electronic goods and then moved to business of low priced TV and stereo sets in 1970s'.The name of company is contraction of Alan Michael Sugar Trading. This company is now known as one of the best companies in section of electronic goods, which’s core business is provisioning of set top boxes for BskyB. Furthermore Amstrad was the pivotal point for its owner to rise a wealth of £830 million and become a multimillionaire.
In 1980 Amstrad floated one the London Stock Exchange changing its ownership from LTD to PLC. This probably was the best choice that was made at the best time in history of Amstrad. Going into public resulted in many good changes in company.
Firstly, after floating in the stock market in April 23rd Amstrad sold approximately 80million ordinary shares which were planned to be sold by 25p each but the shares were 9 times over-subscribed than it was planned so they were sold at much higher price than it was firstly planned with the help of Kleinwort Benson . Furthermore in during early 1980s Amstrad's size and share prices doubled each year and it reached its peak in 1987. At that time Amstrad was worth 1.2 billion pounds.
Secondly, by going public, it helped Amstrad to raise almost 70 million pounds only by selling ordinary shares. That helped them to fund engineers and workers to invent and produce numbers of new products such as personal microcomputers, word processors, portable computers etc. The most popular of these products in that time were models named CPC464 and CPC6128 (CPC stands for Coloured Personal Computers). These products had an enormous impact on market of electronic goods which resulted on the future of Amstrad in best way possible. On top of that Amstrad expanded their company by buying the vast 133000 square feet factory warehouse in Shoeburyness-on-Sea by 2.5 million pounds.
Thirdly, with the money and the fame they acquired from floating in the stock market Amstrad started marketing their CPC series home products in international level in order to capture market from its competitors such as Commodore and Sinclair. After that they started selling their home products in countries Australia, New Zealand,...

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