Mikes Bikes Quick Start Guide Essay Example
Mikes Bikes Quick Start Guide Essay Example

Mikes Bikes Quick Start Guide Essay Example

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  • Pages: 5 (1145 words)
  • Published: February 1, 2018
  • Type: Case Study
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The Mistakes-lento and Quicksteps Guide, also known as Lamb's MS-I, is a valuable tool for simulating business management. Specifically designed for the Bicycle Manufacturing Industry, it provides an interactive platform to comprehend essential concepts including finance, product development, operations, marketing, and pricing. This online resource offers practical knowledge to aid decision-making.

Your team has been designated as the Executive Officers who will eventually assume full control of an established Bike Company. Currently, you begin as Brand Managers, and in three years, the company President plans to retire.

To obtain Firebox for free, simply visit www.floorer.com. The primary objective for Managers/Executive Officers of a Mistakes Firm is to enhance shareholder value (SHOP) by increasing Share Price and paying Dividends. Shareholder Value (SHOP) measures the total


return for shareholders, and the progress of your company is evaluated against competitors by the amount of Shareholder Value you produce.

Shareholder Value refers to the worth of a single share in a company to an investor over time. This value is determined by the current Share Price, which includes all past dividends and interest earned on those dividends. If a company does not pay dividends, then the Shareholder Value is equivalent to the Share Price. Profitability and Earnings per Share (PEPS) have an impact on the Share Price. For instance, if Firm A has 2 million shares available and earns $1 million profit, then its PEPS is $0.50.

In year three of your studies, you can choose to focus on Operations Management or Product Development. Operations Management involves planning the capacity and quality of your company, as well as determining the production quantities of each product. Meanwhile,

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Product Development is focused on making decisions about modifying and creating new products to meet market demands.

Upon logging into your Firm, you will have the opportunity to make decisions for the upcoming year. To save these decisions on our server, simply click "Apply" in a decision screen. These decisions will be processed at the decision deadline/Rollover. During a standard MS-I year, you will assess your prior year's performance through reviewing Industry Reports and Firm results reports. Based on this data, you will formulate a series of decisions which will be entered into each screen. Afterwards, you will review your Forecast Results reports.

If you are unsatisfied with your forecast results, it is suggested that you redo the planning process for your decision set and sales forecasting. It is important to prioritize precise forecasting and there are multiple reports available to assist with forecasting and compare actual performance to past forecasts. Segments Mistakes-lento models a bicycle industry in a hypothetical market based on real market data from the US. Consumers in this market have ample discretionary income and will purchase any bicycle that satisfies their individual requirements.

The Mountain Bike Segment is one of three market segments. Despite being mature, we believe that this segment still holds excellent potential as long as customer preferences are satisfied.

The primary objective is to boost sales and profits for the current product initially. After achieving the third rollover, companies can opt to either refurbish the original bike or introduce untapped segments like Youth or Road Bike. Each segment has a different set of customers with varying preferences concerning pricing, product features, and shopping patterns. The

demand for any given product depends on its quality, price, delivery lead time, advertising efficacy, distribution coverage and competition in the market. Scenario Information Reports have more information about segment preferences. There are three options available for promotion: Corporate Brand Advertising, Product Public Relations (PR), and Product Advertising. By raising awareness levels, corporate brand advertising enhances the effectiveness of product advertising.

There are three media choices available for product advertising and public relations: Television (TV), newspapers, and magazines. It is important to note that newspapers have a heavily concentrated readership. Each media choice performs differently in terms of reach, targeting ability, and cost. These decisions can be found under Product Marketing, Dave Pricing, and Promotion. Corporate brand awareness, product awareness, and the influence of product public relations (PR) depend on your current budget and the carry-over effect from previous periods. Your branding budget over time ultimately determines your level of brand awareness.

By maintaining a constant level of branding expenditure, your new brand advertising will gradually enhance your brand awareness over time. To set retail pricing and sales forecast for your firm's chosen product in the approaching year, use the Product Pricing tab screen.

The Production Planner decision screen will inform you of the expected sales based on the number of units you order. On the Capacity Planner tab decision screen, you can set your desired level of capacity and production efficiency budget for the upcoming year. In the Capacity decision field, you can enter the total factory capacity target for the year in terms of Standard Capacity Units (USC). Each product requires a specific amount of Cuss for production.

The maximum number of

bikes that can be produced in your factory is determined by the capacity planner. However, having excessive capacity in relation to production/sales demand will lead to more idle time, which is an inefficient use of resources and will increase the average manufacturing costs per bike. Quality is measured by the number of warranty claims received for defects. -3-

The Equity tab allows you to raise capital by issuing shares, which can be done by selecting the issue button and entering the desired raised amount. The maximum capital you can raise annually is 50% of your market equity, allowing you to increase outstanding shares by the same percentage. Your decisions regarding equity directly affect share price and SHOP, as repurchasing shares with excess cash leads to increased earnings per share and share price.

While distributing dividends can improve shareholder value, it does not lead to an increase in share price. Moreover, you can modify or introduce new products every three rollovers using the current product decision screen. The Product Plan box located on the upper left corner of the screen allows you to express your development plans for a product, including marketing and Dave Development E.G.

You have three choices at your disposal.

  • Keep the current design
  • Update the product by changing it to a new design
  • Abandon the product
  • Cost to develop Unit Cost
  • Style Value
  • Technical Value
  • USC/licit (how many units of capacity are required to make 1 of these bikes)
  • Productions_spec_year (improve the product's technical and style values)

Productions_cost_year (reduce the product's unit cost)

  • Productions_spec_cost_year (do both) E.
  • At this location, it is possible to input the budgets for both the retailer margin and sales promotion support for each retail channel.

    The commission that the retailer receives for selling a product is represented by the Retailer Margin, which is expressed as a percentage of the product's retail selling price.

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