Problems Confronted By Cyclermate Commerce Essay Example

not provide proper training for their unskilled employees, resulting in reduced productivity. Additionally, factors such as high gas prices, low borrowing costs, and market value further contributed to the challenges faced by Cyclermate.

On the other hand, the social factor played a significant role in shaping human behavior within the organization. Despite having numerous orders, Cyclermate lacked an adequate workforce to effectively seize the opportunity. As a result, workers had to put in overtime hours to complete the orders. Having a larger workforce would have made it easier for Cyclermate to achieve their goals.

In terms of technology, it was apparent that this factor held dominance in the manufacturing sector. However, Cyclermate chose to adopt a labor-intensive approach instead of utilizing machinery for production purposes. This decision hindered efficiency and limited productivity levels. Opting for machinery over manual labor would have been more efficient and increased overall productivity.

Furthermore, Frieda Shlock single-handedly managed most of the administrative work without professional assistance. Accessing proper resources could have greatly improved her efficiency in carrying out these tasks.

Lastly, there were opportunities related to new video technologies, wider product ranges available on the market,and better materials for producing bicycles that could potentially benefit Cyclermate if utilized effectively.SWOT ANALYSIS: A systematic technique used to categorize and identify significant external (Opportunities and Threats) and internal (Strengths and Weaknesses) factors faced in a specific area (Johnson, 1993). It provides data that is useful for aligning capabilities and resources with the surrounding environment, making it a valuable addition to the planning and marketing process (Pearce, 2005).

Strengths: Cyclermate has direct sales channels with direct sales and stores, reducing the need for intermediaries. Lowering manufacturing costs could greatly

help Cyclermate capture a large portion of the market. Direct channels allow for direct contact with suppliers, potentially increasing sales quantity or value, and providing a good opportunity for suppliers to understand customers' needs and make necessary changes accordingly.

In January 2002, it was noted that the employees at Cyclermate are highly innovative and capable of achieving any given goal or implementing changes within the company. However, they are hindered by management, which inhibits their ability to freely express their opinions. Despite this, the employees could play a significant role in the overall growth and development of the company.

One advantage Cyclermate has over other companies is that they own their buildings and land, reducing overall costs. Unlike many companies that have to pay heavy rents, Cyclermate can make any necessary changes to their buildings and capitalize on them as they see fit.Cyclermate faces the challenge of having unmotivated staff due to management policies that discourage creativity and hinder the sharing of ideas. This lack of motivation has resulted in decreased sales and an accumulation of stock in warehouses, causing dissatisfaction among employees and investors alike. Shareholders may even consider withdrawing their investments from the company due to low returns and no interest received last year. The quality of products is also a concern, as ineffective production standards and poor utilization of raw materials have led to a decline in overall quality. However, there are opportunities for Cyclermate to introduce new products such as e-bikes or incorporate electric motors into existing bicycles. Outsourcing manufacturing processes could also be beneficial for cost reduction, while incorporating robotic machinery can increase output speed and improve product quality. Nevertheless, Cyclermate faces

threats from dominant retail stores like Argos and Halfords, which poses a potential risk of losing market share entirely.Furthermore, due to the poor quality of Cyclermate's products, consumers are choosing to avoid their offerings, resulting in a decline in the company's reputation. This is particularly concerning as various enterprises from around the world have entered the market offering high-quality products at lower prices. As a result, Cyclermate faces a threat as they provide goods that are higher in cost but lower in quality.

In terms of short-term and immediate financial planning, an evaluation of Cyclermate's current financial status can be done through accounting ratios. The liquid ratio of Cyclermate stands at 0.76:1, indicating that the company may struggle with meeting short-term liabilities and could face financial difficulties in the future. On the other hand, Cyclermate's asset turnover ratio is 2.06:1, suggesting that their profit margins are relatively low. This can be attributed to an ineffective pricing strategy which has led to decreased profitability for Cyclermate.

Additionally, Cyclermate has a tax return on capital employed of only 0.11 or 11%, which is significantly low. Moreover, it takes them 115 days to collect payments from debtors while having a creditor payment period of 24 days and a cash balance amounting to ?675 GBP. Lastly, according to their financial statement, Cyclermate holds non-current assets valued at ?210,800 GBP; however, any loan application made by them would likely be rejected due to their meager cash balance.

Given these circumstances, Cyclermate has several options available for acquiring funds for its business operationsFirstly, Cyclermate can generate funds for its business by selling its freehold land valued at ?160,000. Additionally, the company can pursue prompt

payments from trade debtors worth ?200,571 to acquire the necessary funds. Once enough funds are obtained, Cyclermate can apply for a bank loan. However, in order to generate better revenue, the company also needs to sell machinery worth ?185,790 at a lower price than expected. Furthermore, it is important for Cyclermate to only buy stock when necessary as buying stock before it is needed may negatively impact the company's financial position. Currently, Cyclermate holds raw materials valued at ?102,300 which can generate revenue if sold at a fair market price.

In terms of production planning and strategies focused on packaging and assembly of rhythms (Cooper 2000), it is crucial for Cyclermate to dedicate a separate section solely focused on packaging goods. By dividing each section and providing individual teams for each task, this will enhance production efficiency and ultimately lead to increased productivity and output over time. One approach consistent with the company's goals could be implementing a strategy that prioritizes the production of popular products and sells them at a premium.

Role of Modern Technology in Production

Incorporating modern technology into rhythm production processes can greatly improve efficiency. For instance, using painting machines instead of manual labor reduces human effort and errors, resulting in enhanced effectiveness. By implementing this new technology, daily rhythm production could potentially increase from 7 frames to 25 or more frames, leading to lower manufacturing costs. These cost savings can then be reflected in the product's selling price, allowing for more rhythms to be sold in the market and generating higher revenues (Cooper, 2000).

Human Resource Planning

To optimize productivity, Cyclermate plans to strategically recruit a small yet highly trained workforce while also providing professional

training to current employees. This will enable the workforce to work efficiently and effectively after receiving adequate training. Additionally, inducement-based plans will be introduced where employees would receive rewards for completing tasks within set deadlines and discounts on purchases made by them. These initiatives aim to motivate the workforce and boost production levels. The company will assign daily tasks with clearly defined roles among its employees and divide responsibilities accordingly. Monthly performance reviews and addressing any concerns will ensure ongoing improvement within the organizationProviding helpful suggestions after each interview has the potential to enhance employee attitude and performance. Furthermore, offering additional incentives for overtime work and ensuring the provision of necessary resources can contribute to the successful completion of tasks. Recognizing employees who meet their targets is also crucial (Jan, 2002).

Sales Strategy

As a vital tool for promoting its products and enhancing public awareness, Cyclermate could effectively utilize marketing strategies. Increasing efforts in advertising through newspapers and magazines necessitates sufficient funding. Leveraging all available marketing resources will enable potential customers and investors to gain a deeper understanding of the company. To achieve global publicity, Cyclermate should consider utilizing newspapers, wireless communication methods, and cyberspace platforms. In addition, establishing its own website would provide relevant information about the products for investors. Implementing online trading options where customers can view product details, prices, and place orders simultaneously would positively impact sales performance as well. Although currently targeting high-toned individuals and the upper middle class with relatively higher prices compared to competitors, reducing manufacturing costs will subsequently lead to price decreases while maintaining superior product quality at a more affordable cost. Opening stores across various regions may

also be considered as an effective approach towards increasing overall sales figures.The text below should beand unified, keeping the and their contents:

Cyclermate should have a dedicated sales team to monitor competitors and provide this information to management. To enhance product quality and reduce costs, Cyclermate should adopt proper quality management techniques. It is important to avoid introducing inferior or low-quality merchandise into the market as it damages the company's image, which is difficult to recover once tarnished. The company needs to hire individuals according to their position's requirements instead of having management interfere with production processes. Selling excess stock stored in the warehouse can resolve current financial difficulties for the company. To generate income for other areas of the company, Cyclermate must sell its owned land that will yield high profits. Implementing modern technology in the production process is necessary to achieve higher output and productivity. Installing a computer database will allow management easy access to important data when needed. Establishing a website with detailed product information is recommended for Cyclermate. Direct sales prices should be reduced to sell current stock and trade debtors efficiently. Hiring a young and trained workforce suitable for positions within the company is advisable.
Cyclermate needs to manufacture high-quality products at low prices in order to meet or exceed competitors' standards. To achieve this, the company must revisit its budget and implement necessary quality control measures and cost-cutting methods. It is important for each department of the company to receive an appropriate allocation of the budget.

Recently, Cyclermate's products have not been widely accepted in the market due to their high price and poor quality issues. Another significant issue is a

lack of suitable individuals in key positions within the company. However, if Cyclermate operates differently, it has a promising future. The popularity of their products was based on their price and quality, so maintaining these standards can help retain market share and reputation.

New regulations may require changes to be made by Cyclermate. Currently facing a financial crisis with only ?657 cash balance, the company is unable to effectively execute its functions. The entry of new competitors into the market has also affected Cyclermate's current action plan as other companies offer improved quality products at lower prices.

The lack of coordination among various sections within Cyclermate has resulted in losses for the company. In particular, there are issues with the production section lacking proper information which leads to unnecessary product fabrication and stockpiles in warehouses. The sales and inventory sections also struggle due to these issues.
( Cooper, 2000 )According to Tuckwell (2007), Cyclermate can achieve success in the future by implementing strict and improved methods.