Download - Real Time Bikes Final Presentations
Real Time Bikes
CEO – Tom DolanOperations – Drew CummingsFinance – John BishopAdvertising – AJ Koberski
Company SWOT Strengths:
Communication Organization Brand Awareness Kids Bike sold
well Set up time was
low
Weaknesses: Can’t Design Bikes Can’t keep money Can’t keep track
of expenditures Can’t run a
business Couldn’t focus on
one market
Company SWOT Opportunities:
Kids bike market size is large
In process of creating commuter bike
Plant size is large. More profits in the future
Potential support for store
Threats: Other companies
success Prices sensitive
market Advertising
sensitive market Our first rollover set
up us for a being an unsuccessful company
Mission/Vision Statements Mission Statement: We want to provide
our community with quality cycling products, unyielding customer service, and a passion for bicycling’s abundant opportunities.
Vision Statement: Striving to be the world’s leading bike manufacturer while maintaining sustainable long-term competitive advantage.
Tasks for each Department CEO – Tom Dolan Focused on overseeing decisions made
by the Vice Presidents Worked with design team for creating
new bikes Checked over the decisions for each roll
over
Vice President of Operations – Drew Cummings
Developed and oversaw: Workforce Plant Size Batch size and setup time reduction costs Quality (pay raises, training,
maintenance, research for quality, and inspection %)
John Bishop – Vice President of Finance Controlled issuing and repurchasing
equity Dividends Oversaw long-term debt Worked with investor relations
Vice President of Marketing – AJ Koberski Supervised product pricing Organized percentages and pricing on
each bikes advertising Ensured Public Relations was evenly
balanced with each bike
Decisions for year 2015 Advertising Cost: $2,000,000 Public Relation Cost: $1,000,000 Branding Cost: $1,600,000
Total Cost: $4,600,000
Decisions for 2015 Increased price of bike from $1,600 to
$2,100 Added 20,000 SCU for plant size Increased batch size from 200 to 1,150 Setup time reduction $2,750,000 Maintenance Expenditure $2,750,000 Quality Systems $3,000,000
Decisions for 2015 Repurchased Equity $400,000
Dividend per share $0.12
Debt repaid $500,000
Decisions for 2015 Design Goal: Develop and dominate kids
bike Style and Design specs were perfect Prime cost $35
TOO LOW Caused bike to fail
Decisions for 2016 Advertising Cost: $2,150,000 Shifted Public Relations of our Magazines
higher, so we could make up some of our lost sales
Branding stayed the same. Our brand awareness was good.
Decreased bike shop and sport stores support by $800,000.
Department stores retail margin dropped by 2%.
Decisions for 2016 Decreased Quality Systems by
$500,000. Decreased inspections by 5%. Decreased raw materials from 5 weeks
to 1 weeks. Decreased price of adventure bike by
$2,100 to $1,400. Safety stock decreased from 4 weeks to
1 week.
Decisions for 2016 Designed a new kid’s bike. Specs and design was perfect. Prime cost was changed from $35 to
$58.
Decisions for 2017 Kids Bike Advertising
Total Spent: $1,300,000 Adventure Bike Advertising
Total Spent: $1,350,000 Decreased by $800,000
Total Spent on Ads: $2,650,000 Branding Cost went from $1,600,000 to
$3,000,000
Decisions for 2017 Increased sport stores by $300,000. Increased department stores by
$500,000. Also changed retail margin of
department stores by 7% (36%-43%). Decreased bike shops by 300,000 and
their retail margin by 3%.
Decisions for 2017 Purchased 10,000 SCU Increased workers by 5 Set Up Cost: $4,500,000 Quality Systems $3,500,000 Decreased maintenance by $500,000 Increased Adventure price by $200
Increased production by 13,000 Produced 130,000 kids bike
Decisions for 2017 Launched Kid’s bike. Design was a success. Chance for Real Time Bikes to make a
come back.
Decisions for 2018 ***Warning: Decisions Altered!*** You experienced a shortage of cash at
the beginning of last year. Some of your decisions had to be altered to avoid running out of cash. Decisions will have been reduced in this order:
Dividends, equity repurchase, repayment of debt, plant purchase product development
Decisions for 2018 Advertising Spent on Adventure Bike:
$450,000 Advertising Spent on Kids Bike:
$295,000 Spent $0 on Public Relations
Trying to save money where we can
Decisions for 2018 Decreased workers by 15. Purchased 5,000 SCU. Maintenance Expenditure: $2,250,000. Quality Systems: $3,250,000. Set Up Time: $4,500,000. Tried to reduce prices but keep
production % up. Increased workers salary by $2,500 in 2
years due to major cut.
Decisions for 2018 Increased support of sport stores and
department stores to $1,000,000 each. Increased retail margin by 2% each (43%-
45%) Increased price of kids bike by $90. Decreased production of kids bike by
12,000
Decisions for 2019 Spent $20,000 on public relations on the
Adventure Bike. Fired 5 employees.
(20 employees fired in the past 2 years) Couldn’t make any of changes.
Decisions for the future The $40,000,000 we received would not
have helped. At that point we were $28,000,000 in
debt. We would take $12,000,000 for the next
turn. We would have created a new commuter
bike. Increased production to make more sales. Alter retail price to be competitive.