1. Dylan Chisholm (201006059) R.D. Chisholm (201007930) Molly MacDonald (201006408)

2. Strategic Decision Analysis of Sales Growth, COGS, and Profitability Marketing Results Operations Results SWOT Analysis Objectives Recommendations Conclusion

3. In the first 3 years for the mountain bike the strategy was to have a low cost bike with high inventory. In 2014 a new youth bike was introduced and was launched in 2016. The strategy implemented with the DMR youth bike was low inventory and high cost

4. Sales Growth: Very little change in sales growth Inconsistent with the industry average COGS: Vertical analysis of COGS remained constant Horizontal analysis for cost of goods sold was inconsistent from year to year Profitability: Capacity remained relatively the same, which kept the profitability constant Our profit after tax remained constant, but after we made an investment in 2014 the profit took a major hit

5. consistent with awareness rating, PR rating and distribution 3 rd highest awareness rating while BMX was at the top Low PR rating throughout Distribution rating remained fairly consistent

7. Strengths Our firm has held a gross margin of at least 43% over the years Shareholders value had increased higher than our direct competitors (Hot Wheels) every year up until 2015 Weaknesses Awareness: Capacity planning Strategy Opportunities New Products Strategic Repositioning Distribution Savings/Cash Threats Competition Positioning

8. MikeBikes has seen many ups and downs over the past 7 years, having faced adversity but still following through with success. Mistakes have been made our firm and we have faced the consequences of them, however we have learned from these mistakes and well use them as guidelines for the future in improving our stance and growth in the market. Although we currently are trying to rebuild and re-establish our place as a firm, we plan on using our assets to do this effectively and efficiently and in the future we will expand and become one of the most powerful firms in the market.

9. Short term goals 1. Focus on the youth bike industry and the success of the DMR by decreasing its sale price from $310 to $290 and increase inventory from 10,000 to 35,000 2. Increase our awareness rating so that it is highest in the industry for both the DMR youth bike and the mountain bike. For DMR: increase from 0.14 to 0.35 and for the mountain bike: increase from 0.19 to 0.3. Intermediate term goals 3. Improving the quality of our mountain bike by increasing money spent on it. This will allow us to decrease our COGS. Our current average is 55% and the industry average s 54%. Our goal is to decrease our percentage to fewer than 50% to gain profit within the next 5 years. 4. Increase gross margin to 60% within the next 5 years for both bikes. Long term goals 5. Increase our SHV to $40 per share or higher by 2023.

10. 1. Adjust pricing and number of bikes in our inventory for DMR Price to be one of the lowest in the industry Increase inventory to a number around previous lost sales number (approximately 35,000) 2. Increase our awareness rating by spending more on PR and advertising Especially beneficial for our plan on improving the mountain bike, for it will make consumers aware of the increase in quality and efficiency. 3. Improving the quality of our bike by spending more money as a result bike can then be sold at a higher price This will lower COGS; our COGS has been fairly high compared to other firms 4. Increasing gross margin to 60% within the next 5 years is a goal that... 5. Our long-term goal is to increase our shareholder value to $40 per share or higher by the year 2023. By achieving our previous stated goals, our shareholder value will rise and will continue to increase with the success of our objectives.