1. Sara201002874 Laura 201002053 Colin 201001682

2. Firm Strategy Develop a high awareness Obtain the majority of total sales for each bike Basic averaged quality bikes Own the majority of available shares Earn and burn to increase gross margin

3. Analysis of Results Sales of over: $21,000,000 Profits of over: $3,200,000 Shareholder Value: $32.00 Earnings per share: $3.93 Vertical Analysis The cost of goods sold increased as a percentage of sales 53.44% in 2017, 45.62% in 2016 and 55.09% in 2015. The gross margin increased 46.56% in 2017, 54.38% in 2016 and 44.91% in 2015. Profitability increased on marginally over the years: 14.74% in 2017, 15.52% in 2016 and 7.27% in 2015.

4. Analysis of Results Horizontal Analysis Mountain bike sales increased 11.37% in 2017, 16.46% in 2016 and – in 2015. Road bike sales increased by 2.08% in 2017, slightly less than the 2.57% increase in 2016. Profits have grown considerably within the past 3 years. Increasing in 2017 by 2.43%, 139.13% in 2016 and in 2015 with profits increasing by 200.23%. Even though the cost of goods sold increase was continuous throughout the past 3 years Wheelin’ & Peelin’ still fall behind it’s two main competitors, Bad As Bikes and Buckle’s Bikes by just over $1 million.

5. SWOT Analysis STENGTHSWEAKNESSES Least amount of wastage in 2015 and 2017. Firm owning the most amount of their own shares in 2014, 2016 and 2017. Highest amount of road bike sales between 2015 and 2017. Highest awareness rating in road bike industry from 2014, 2015, 2016 and 2017. Increased efficiency improvement since 2010. Over the past three years our road bike sales distribution rating increased 95.21%. From 2016 to 2017 our public relations rating for our road bike decreased 1.64%. Over the past three years our public relations rating for the mountain bike decreased 16%.

6. SWOT Analysis OPPORTUNITESTHREATS Buckle’$ Bike$ under performance in the road bike industry gives us the opportunity to increase the amount of bikes we produce. By doing so, we will be able to capitalize on the road bike industry sales. With only three firms competing in the youth bike industry we could enter it. We could gain and steal sales from the other firms by implementing a lower retail price and a higher quality rating. Buckle’$ Bike$ recent increase in sales due to being a competitor in all three industries. There is a crowding in the mountain bike industry causing it to be difficult to be a leading firm.

7. Objectives and Recommendations Focus on the road bike industry Increase expenditure on road bikes Build a higher awareness rating Increase quality of bikes Raise prices Lower COGS Higher gross margin Higher shareholder value

8. Closing Firm was successful Decisions Team Questions and Answers