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Six Star Bikes

Six Star Bikes. Will Gillis Emma MacPherson Matt Osborne Jamie Waites Everett Waters. Firm Strategy. Our firm approached this market with a high sale, low cost strategy

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Six Star Bikes

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  1. Six Star Bikes Will Gillis Emma MacPherson Matt Osborne Jamie Waites Everett Waters

  2. Firm Strategy Our firm approached this market with a high sale, low cost strategy Our target demographic was customers who our lower pricing would appeal to and who wouldn’t be sensitive to our lower quality products Our firms strategy helped to maintain a consistently high level of results over the course of our operation We implemented this strategy throughout our entire operation and every decision in regards to marketing, advertising, and distribution was made to help further our initial strategy

  3. Analysis of Financial Results 6 Star Bikes Growth of Sales 2013 – 14,457,702 2014 – 13,763,705 5% Decrease Cost of Goods Sold 2013 – 7,561,733 2014 – 7,185,218 5% Decrease Profitability Return on Equity 2013 – 0.27 2014 – 0.27 Earnings per Share 2013 – 2.8 2014 – 2.7 Industry Averages Growth of Sales 2013 – $12,145,844 2014 - $14,145,844 15% Increase Cost of Goods Sold 2013 – 5,696,986 2014 – 7,547,928 32% Increase Profitability Return on Equity 2013 – 0.17 2014 – 0.20 Earnings Per Share 2013 – 1.53 2014 – 1.89

  4. Analysis of Operations Results Operations decisions followed our low cost pricing strategy 6 Star Bikes had the lowest quality index in the industry due to low market sensitivity to the quality of our products Higher wastage was used to reduce costs while also being able to produce a high capacity of bikes

  5. Analysis of Marketing Results • Marketing Results followed our low cost pricing strategy • Strategically placed advertisements in areas that reached the highest amount of potential customers • Used market sensitivities to cut costs while still maintaining a desirable product

  6. 6 Stat Bikes: SWOT Analysis STRENGTHS: - 2013-2014 Profitability: -Return On Equity & - Earnings Per Share - Drop of C.O.G.S. - High Sale, Low Cost Stratagey WEAKNESSES - Decrease in Growth of Sales -?suggestions -? suggestions

  7. SWOT Analysis Continued OPPORTUNITIES -Expanding into Road Bike Market -Ability to soon capture Mountain Bike Market Sales Goals Pricing » Rise in Sales -?? THREATS -Dividends: Increases Expenses » Loss of current or Potential Investors? -??? -???

  8. Recommendations for the Future • Enter Road Bike Market • -1 million towards advertising for Road Bikes through magazines and internet • Decrease advertising expense for other bikes • Capture Mountain Bike Market • -Goal for sales 25,000 units • -Drop prices to approximately $510 • Issue Dividends Whenever Possible • -Due to increased expenses after entering the road bike market there will not be a dividend in the coming year • -This past year we offered a 2.50 per share dividend and hope to continue to do so in two years

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