Review your financial and market performance during the second year. Highlight the key features of the business plan presented to the venture capitalists: brand strategy, pricing strate
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Get it written →- Review your financial and market performance during the second year. Highlight the key features of the business plan presented to the venture capitalists: brand strategy, pricing strategy, advertising strategy, and sales channel.
- Assess your business strategy and performance during the second year.
- Explain actions taken in regard to the marketing plan.
Custom bike company
Industry Financial Ratios
| Industry Financial Ratios | ||||
| Ratio | Lowest | Highest | Average | Custom Bike Company |
| Liquidity Ratios | ||||
| Quick Liquidity Test Ratio | 1.43 | 1.43 | 1.43 | N/A |
| Activity Ratios | ||||
| Fixed Assets Turnover | 1.17 | 4.47 | 2.59 | 1.17 |
| Total Assets Turnover | 0.89 | 1.97 | 1.42 | 0.89 |
| Leverage Ratios | ||||
| Debt Ratio | 0.00 | 15.22 | 3.04 | 0.00 |
| Debt to Paid-In Capital | 0.00 | 17.96 | 3.59 | 0.00 |
| Profitability Ratios | ||||
| Gross Profit Margin | 55.28 | 68.13 | 62.75 | 68.13 |
| Net Profit Margin | 10.25 | 29.98 | 20.85 | 15.40 |
| Return on Assets | 12.69 | 45.84 | 30.75 | 13.77 |
| Return on Paid-In Capital | 12.69 | 45.84 | 32.13 | 13.77 |
| Financial Statement Highlights | ||||
| Revenues | 2,544,300 | 12,611,850 | 8,193,144 | 2,544,300 |
| Gross Profit | 1,733,369 | 8,513,514 | 5,146,400 | 1,733,369 |
| Net Income | 391,698 | 3,678,076 | 1,922,100 | 391,698 |
| End of Worksheet |
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Market Demand
| Market Demand | ||||
| Company | Recreation | Mountain | Speed | Total Demand |
| Freedom Cycles | 4,681 | 5,042 | 3,129 | 12,852 |
| CIOVATION | 1,251 | 2,650 | 1,913 | 5,814 |
| Cyclist Corporation | 1,287 | 3,195 | 2,183 | 6,665 |
| Seiklus3D | 2,301 | 5,652 | 3,317 | 11,270 |
| Custom Bike Company | 1,204 | 167 | 675 | 2,046 |
| Total | 10,724 | 16,706 | 11,217 | 38,647 |
| End of Worksheet |
Market Share
| Market Share | ||||
| Company | Recreation | Mountain | Speed | Total Market Share |
| Freedom Cycles | 43.65 | 30.18 | 27.90 | 33.25 |
| CIOVATION | 11.67 | 15.86 | 17.05 | 15.04 |
| Cyclist Corporation | 12.00 | 19.12 | 19.46 | 17.25 |
| Seiklus3D | 21.46 | 33.83 | 29.57 | 29.16 |
| Custom Bike Company | 11.23 | 1.00 | 6.02 | 5.29 |
| End of Worksheet |
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Sales – Total
| Sales – Total | |||||||
| Brand | Net Demand | Lost Sales Due to Stock-outs | Units Sold | Sales Revenue | Rebates | Cost of Goods Sold | Gross Margin |
| Cruiser 2.0 | 432 | 0 | 432 | 475,200 | 10,800 | 115,130 | 349,270 |
| The Climber | 186 | 0 | 186 | 241,800 | 4,650 | 78,971 | 158,179 |
| Silver Bullet | 675 | 0 | 675 | 945,000 | 16,900 | 330,500 | 597,600 |
| Cruiser 3.0 | 426 | 0 | 426 | 489,900 | 10,650 | 128,412 | 350,838 |
| Cruiser 4.0 | 327 | 0 | 327 | 392,400 | 16,400 | 98,517 | 277,483 |
| Total | 2,046 | 0 | 2,046 | 2,544,300 | 59,400 | 751,531 | 1,733,369 |
| End of Worksheet |
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Brand Profitability
| Brand Profitability | |||||
| Report Item | Cruiser 2.0 | The Climber | Silver Bullet | Cruiser 3.0 | Cruiser 4.0 |
| Brand Revenues | 475,200 | 241,800 | 945,000 | 489,900 | 392,400 |
| – Rebates | 10,800 | 4,650 | 16,900 | 10,650 | 16,400 |
| – Cost of Goods Sold | 115,130 | 78,971 | 330,500 | 128,412 | 98,517 |
| = Gross Profit | 349,270 | 158,179 | 597,600 | 350,838 | 277,483 |
| Brand Design | 0 | 0 | 0 | 0 | 0 |
| + Ad Design | 0 | 0 | 0 | 0 | 0 |
| + Brand Advertising | 31,062 | 15,000 | 0 | 22,500 | 31,062 |
| + Brand Promotions | 1,500 | 1,500 | 1,500 | 1,500 | 1,500 |
| + Internet Marketing | 3,502 | 10,479 | 0 | 6,077 | 9,231 |
| = Expenses | 36,064 | 26,979 | 1,500 | 30,077 | 41,793 |
| Brand Profit | 313,206 | 131,200 | 596,100 | 320,761 | 235,690 |
| Profit per Unit | 725 | 705 | 883 | 753 | 721 |
| % from Brand Revenues | 66 | 54 | 63 | 65 | 60 |
| End of Worksheet |
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Conscious Scorecard
| Corrections to conditions that cause harm are indicated using a "+". Failures to correct such conditions are indicated using a "X". | |||||
| Conscious Scorecard | |||||
| Quarter 2 | Quarter 3 | Quarter 4 | Quarter 5 | Quarter 6 | |
| Employee Survey | |||||
| Employee Survey | + | Blank | Blank | Blank | Blank |
| Quality Inspections | |||||
| Bike frame | + | + | + | + | + |
| Carbon fiber material | + | + | + | + | + |
| Tires | + | + | + | + | + |
| Brakes | + | + | + | + | + |
| Gears | + | + | + | + | + |
| Follow-up Studies | |||||
| Environmental Concerns | Blank | Blank | + | Blank | Blank |
| Quality Control | Blank | + | Blank | Blank | Blank |
| Employee Involvement | Blank | Blank | Blank | Blank | + |
| Production Efficiency | Blank | + | Blank | Blank | Blank |
| Good Neighbor | Blank | Blank | Blank | Blank | + |
| Environmental Concerns | |||||
| Retrofit production facility with system to collect, store, and dispose of all chemicals. | Blank | Blank | Blank | Blank | + |
| Separate employees from chemicals with respirators, protective clothing, and gloves. | Blank | Blank | Blank | Blank | + |
| Create a "clean room" production facility by controlling the airflow with a super clean, reverse-flow, air ventilation and filtration system. | Blank | Blank | Blank | Blank | + |
| Place air-filtering plants throughout the production facility. | Blank | Blank | Blank | Blank | + |
| Join a producer consortium to develop economical and environmentally friendly ways to recycle carbon fiber products. | Blank | Blank | Blank | Blank | + |
| Worker Training | |||||
| Cross-train employees to work on multiple tasks within their department. | Blank | Blank | + | + | + |
| Train employees to help with departmental planning, including issues related to workflow, equipment, materials, job assignments, vacation scheduling, etc. | Blank | Blank | Blank | Blank | Blank |
| Schedule time for department planning with coworkers and supervisors. | Blank | Blank | Blank | Blank | Blank |
| Develop teamwork skills, including interpersonal, communication, and negotiation skills. | Blank | Blank | Blank | Blank | Blank |
| Quality Control | |||||
| Set up a statistical process control (SPC) program to monitor all materials, parts and manufactured components. | Blank | Blank | + | + | + |
| Train operators to detect errors and adjust machines so they produce within tolerance. | Blank | Blank | + | + | + |
| Supplier Relationships | |||||
| Measure and reward purchasing agents on both the cost and quality of incoming materials, parts, and services. | Blank | Blank | Blank | Blank | + |
| Work with suppliers to launch and maintain their own quality improvement programs. | Blank | Blank | Blank | Blank | Blank |
| Health | |||||
| Provide fitness center for employees. | Blank | Blank | Blank | Blank | Blank |
| Provide daycare services for employees. | Blank | Blank | Blank | Blank | Blank |
| Setup and run a health clinic that includes general practitioners plus a few specialists for employees only. | Blank | Blank | Blank | Blank | Blank |
| Setup and run a health clinic that includes general practitioners plus a few specialists for the immediate families of employees. | Blank | Blank | Blank | Blank | Blank |
| Good Neighbor | |||||
| Set up a grant program to supplement the learning experiences at local schools. | Blank | Blank | Blank | Blank | Blank |
| Provide seed money to create a technical training school and recruit its students as employees. | Blank | Blank | Blank | Blank | Blank |
| Help to create bike trails that connect the residential areas, community center and the industrial section where the production facility is located. | Blank | Blank | Blank | Blank | Blank |
| Help to create a series of parks throughout the community, but first near the production facility. | Blank | Blank | Blank | Blank | Blank |
| Work with local officials to expand and repave the stretch of road from the apartment complexes to the production facility. | Blank | Blank | Blank | Blank | Blank |
| R&D Investments | |||||
| Carbon fiber material: Enriched – lighter, stronger | Blank | Blank | Blank | Blank | Blank |
| Carbon fiber material: Superior – very light, strong | Blank | Blank | Blank | Blank | Blank |
| Accessories: Pedal-powered phone/device charger | Blank | Blank | Blank | Blank | Blank |
| Packaging: Sustainable | Blank | Blank | Blank | Blank | Blank |
| Failure to correct conditions that cause harm to employees, customers and/or community after learning about the problem and being able to fix it | |||||
| Allowing toxic chemicals to enter the water supply | Blank | Blank | X | X | Blank |
| Exposing workers to toxic chemicals during the production process | Blank | Blank | X | X | Blank |
| Exposing workers to tiny carbon fibers and epoxy dust that could cause respiratory problems | Blank | Blank | X | X | Blank |
| Selling rugged bike frames with the standard carbon fiber that could result in injuries to Mountain bikers | Blank | Blank | Blank | X | X |
| Selling products with packaging that is wasteful | Blank | Blank | Blank | X | X |