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

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. 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 Star Bikes: SWOT Analysis STRENGTHS: - 2013-2014 Profitability: -Return On Equity & -Earnings Per Share - Drop of C.O.G.S. - High Sale, Low Cost Strategy WEAKNESSES -Decrease in Growth of Sales - Drop between 2013-2014 -Low Quality - Improve through R.B. expansion -The Road Bike Market - Wiked Bikes: High Profit, High Costs, Strategy & Competition

7. SWOT Analysis Continued OPPORTUNITIES -Expanding into Road Bike Market -Wiked Bikes -Ability to capture Mountain Bike Market ◦ Sales Goals ◦ Pricing » Rise in Sales ◦ 6 Star’s Position in the Market THREATS -Dividends: ◦ Increases Expenses » Effect on Current or Potential Investors? -Youth Bike Price Wars: ◦ High Capacities » Low Costs and Competition ◦ Issue » Sales & Quality

8. Recommendations for the Future Enter Road Bike Market -$1 million towards advertising for Road Bikes through magazines and internet -Decrease advertising expense for youth bikes by 50% -Increase brand advertising 150% to $600,000 Capture Mountain Bike Market -Goal for sales 26,000 units -Drop prices to approximately $500 Establish a Higher Quality Brand -Current rating: 55%Target Rating: 75%  3-4 years Issue Dividends -2014: $2.50/share -Increased expenses in 2015 makes a similar dividend unrealistic -2016: Expected profits; reward investors