1. Dylan Roth (201102176) Patrick Gormley (201103706) Maclean Patterson (201105266) Kunle Tosin Idris (201101463)

2.  Sales: $16,033,526  Units Sold: 38,072  Costs: $9,448,743  Profits: $2,071,876  Shareholder Value: $8.76  Earnings per Share: $1.45  Mountain Bike #1 Price : $748  Mountain Bike #2 Price: $570  Mountain Bike #1 Quality: 0.84  Mountain Bike #2 Quality: 0.84  Mountain Bike Direct Competitors: RTP Bikes, Firm3, The Capable Jaguars, Mikes Bikes and Pro Bikes

3.  Gross Margin was Bike Brothers most consistent from year to year staying at a average change of 41.68%  Finishing 2018 with a 41.59% increase in gross margin.  Total Assets, Total Liabilities and Shareholders’ Equity had a large increase in 2015 going from 160% to 210.81% after 2015 total assets slowly declined ending 2018 at 127% increase.

4.  We saw our gross margin increased throughout the 5 years, seeing the largest increase in 2016 after our 2015 introduction of our 2 nd mountain bike.  In 2015 we experienced a decrease in total assets, total liabilities and shareholders’ equity of -14% after we saw them start to increase again, increasing in 2018 of 15.57%

5.  According to the ratio solvency Bike Brothers current ratio is in good standing at 16.44% meaning that our company has a high liquidity, Bike Brothers best year for current ratio was 2016 with a ratio of 46.11%.  Debt to equity ratio was considerably low throughout the last 5 years averaging a ratio of.24%, our company has a low amount of debt, and is therefore exposed to less risk in terms of interest rate increases.  Earnings per share was below the industry average of 6.31% as we experienced difficulty early on generating profit in 2015.  Return on equity can help us explain why we were profitable in the latter years. The return on equity deteriorated from.18 in 2014 to.14 in 2018 a difference of.04.

6.  In our Horizontal analysis we saw our sales grow the biggest after 2015 of 45.56%, our sales growth slowed down after 2015 to a sales growth of 4.20% during our last year.  The addition of the second mountain bike put a hold on our sales for the first year.

7.  We Found in our Vertical Analysis that COGS experienced a constant decrease from 2015 having a revenue cost of $.60 per unit to $.58 revenue cost per unit in 2018.  In our Horizontal analysis Bike Brothers COGS started 2015 with a increase of 45.56 then ended 2018 with a decrease to 3.49%  2015 being our largest year for COGS being as we inserted our second mountain bike.

8.  In our Vertical analysis. We saw profitability decreased from 13.71% in 2014 to a mere 9.05% by 2018. Once again we ran into struggles in 2015 having -5.37% after the insertion of the second mountain bike.  In our Horizontal analysis we saw profits in 2015 start at a percentage rate of -151.16 and decrease significantly in 2016 to -250.43, after 2016 Bikes Brothers slowly regained a positive profit ending with an increase of 30.50%.  Bike Brothers recovered well after a bad 2015 year, having a negative profit of -685,586.  After 2015 we had a steady 3 years of positive profit, increasing each year ending in 2018 with a profit of 1,450,313.

9.  Our Company sales (Adv1) level increased by 7.2% from 19,102 per bike to 20,474 in 2017 to 2018 and it increased more in 2016 to 2017 by 10.8% from 17,236 to 19,102. the sales (Xtreme_2015) level of our second product remain the same at 17600 from 2017 to 2018.  Our (Adv1) price is the second highest sales in the industry and we are 3,726 below the highest sales in the industry. And our (Xtreme_2015) is the fifth highest in the industry with 6,598 below the highe st

10.  We have the second highest Awareness in the industry with just 0.1 different from the highest firm in the industry with (Adv1). While (Xtreme_2015) have a low awareness of 0.11 below the highest in the industry.  Adv1 promotion (awareness rating) of 0.29 is 0.06 above the industry average promotion rate of 0.23 and Xtreme_2015 awareness rate of 0.18 is 0.05 below the industry average

11.  Adv1 and Xtreme_2015 have the same distribution rate of 0.55 is 0.05 above the suggested distribution target  We increase our company distribution rate for (Adv1) by 2% by 0.54 to 0.55 in 2017 to 2018. And (Xtreme_2015) also increased by 2% by 0.54 to 0.55 in 2017 to 2018.

12.  The cost of goods of our firm increased by 3% from $9,049,484 to $9,364,940 in our previous year to our new current year.  The firm wastage decreased by -30% from 10% to 7% in previous year to this current year  Our firm cost of goods of $9,364,940 is $220,099 below the industry average cost of goods of $9,585,039

13.  Consistently showed profit over 1 000 000 4 out of 5 years  Profit of $1 031 293 in 2016, $1 111 333 in 2017 and a 30.5% increase to $1 450 313 in the 2018 period  Highest Share of mountain bike market (26.4% of total sales in 2018  Share growing around 1% per year  Both bikes hold High PR & Distribution ratings .11 PR rating highest in simulation .55 Distribution tied both for second  Sold all available inventory for Xtreme 2015 and effectively undercut competitors in market  Price of $570 compared to market average $709

14.  Low Shareholder Value  Just $8.76 in 2018, second lowest in the simulation  No presence in other product markets  Poor sales projections and inventory led to excess inventory for first product and excess demand for second  6238 estimated lost sales 2018  Low net assets compared to competitors  $10,220,398 in 2018 compared to average $18,347,873  Profit after tax below average  $1,450,313 in 2018 compared to average $5,559,543  Low cash balance  $9 360 333 in 2018 compared to the market average of $16 007 890

15.  Increase production and support of our second product, Xtreme 2015  6238 in lost sales 2018  Can increase price and still undercut competitors  Increase Shareholder value by issuing dividends  Reduce idle time by better allocating resources  13% idle time 2018  Decrease % of each sale we give to retailers  Currently giving 37%, the highest in the simulation world  Attempt to enter new market taking advantage of price skimming strategy  Competitors already established, less risky than predatory

16.  Other firms have much higher working capital  Average cash for top 3 firms 2018 is 27 395 147  More ability to take financial risk  All competitors already in the mountain bike market  Reduced barriers to entry, existing brand and product reputation  No diversity in revenue streams  Profits completely reliant on success within mountain bike market

17. Our Plan…  Quality over quantity  Customer satisfaction  Be innovative  Make smarter decisions

18. Financing  Increase our sales by 10% (20 million)  Have a net profit increase of 30% (2 million)  Increase our share value by:  Reducing cost base while maintaining revenue  Increase revenue share and reduce cost.

19. Marketing  Launch a new product  Youth Bike  Road Bike  Increase our advertisement expenditure  Increase our supply by 8%

20. Operations  Maintain our efficiency level and quality index  Decrease our COGS  Introduce intellectual property