Twister, Inc. Ahsan Mirza Rachel Sigley 2010 Annual Report Ashneet Kaur Hamza Khatri Mgmt 492 – Professor Shanthi Gopalakrishnan – Mikes Bikes Final Presentation
Ahsan Mirza CEO Executive Board Hamza Khatri COO Rachel Sigley CMO Ashneet Kaur CFO Executive Board
Note to Shareholders Twisters’ bikes are built for riders, by riders, and we have been doing it better than anyone since 2004. We understand the need for new technology and how to best design our bikes to our customers satisfaction because we know the customer is the most important part of our business. Our new Quencher bike was built ready to take any degree of abuse you can generate on a daily use, but it is also built tough so that it will last a lifetime. At Twister we take building bikes seriously with our dedication to you, the customer, but also to your communities, the environment and our stakeholders. We are a company of great ethics and standards in which we feel the customers comes first. Quality and customers service are our #1 policy. From leisure bikes to mountain bikes, to jump and trail bikes and more, every Twister bike is tough, fast and fun to ride. Come see what more than six years of building the best bikes can do to your ride. Thank you for being a proud and loyal customer of Twister. Executive Board
"Twisters mission is to serve low-to-middle income families the opportunity to own affordable bicycles. We hope to have our growth limited by only our imaginations and to have the ability to develop a technically competitive product that suits the customers design needs. We seek to provide low cost items in high quantities to rapidly expanding and growing low-to-middle income segments. Twister seeks to provide our product on-time , on-quality , and on-cost . To meet our customer's needs we strive to continue to keep our production costs down thus enabling us to return those savings to them. We hope to meet our employee's needs by creating a small community of employees in which to conduct business where hopefully we can make an environment of admiration , trust , and dignity which employees will feel embraced by. We will do our best to continue to train employees and sell a high enough volume of products to help keep as many jobs available as possible. Twister hopes that we can create strong relations with our distribution and supplier partners. This can ultimately aid us in getting our products into more stores. By creating better relations, we also hope to reduce operating costs , allowing us to then return the cost-savings back to our consumers. In addition, we hope to be able to aid the community by supporting others businesses through supplier relations and being sure to operate in a manner that continues to support the citizens and environment in which we work." Mission Statement Mission Statement
Our employees volunteer in many different national and local groups.
Partners and Partnerships
United Way, America’s Second Harvest, and HOSTS Learning – “Help One Student to Succeed.”
Cash and Product Donations
In 2010, we contributed more than $1 million in cash and $5 million in product to various charitable organizations around the world.
CSR Twister Ethics
Proper maintenance of plant and equipment.
Protecting global and local eco-systems.
Emissions, Kyoto Protocol
CSR Twister Ethics
We are firmly committed to the fair and equitable treatment of all our employees and job applicants.
Customers and consumers expect more from Twister and it is every employee’s job to make sure Twister meets their expectations.
Investors count on Twister to deliver on its commitments, provide accurate information about its affiliates and to make responsible business decisions based on reliable records.
Twister believes in doing business with suppliers, contractors, joint venture partners, agents, sales representatives, distributors and consultants who embrace and demonstrate high standards of ethical behavior.
We actively seek opportunities to contribute to the communities in which we do business, and to improve the environment that sustains us all.
CSR Twister Ethics
Employee safety is a value at Twister. We are committed to providing a safe and healthy work environment and preventing accidents.
Employees are accountable for observing the safety and health rules and practices that apply to their jobs.
They are expected to take precautions necessary to protect themselves and their co-workers, including immediately reporting accidents, injuries and unsafe practices or conditions.
Employees also are expected to report to work free from the influence of any substances that could prevent or impair them from performing their jobs safely
CSR Twister Ethics
Profit per bike
Specialized A1 Premium Aluminum comfort frame with smooth-welded finish
Specialized ultra-smooth coil suspension seat post
Specialized fully adjustable Ahead-style stem and anatomic 80mm-rise alloy handlebars
Plant size was further reduced to deduct the idle time
Margins made by the distributors were further controlled
Emphasis were made on sport and department stores where sales are huge
Gatorade had the app. Tech specs of market
Year 2010 Decisions Taken Financials
Year 2010 Balance Sheet Financials
Year 2010 Income Statement Financials
Year 2010 Cash Flows Financials
Commuter bike’s price didn’t allow to make much revenue - $1,594,692
However, operating cash flows and investment cash are positive
NI is looking positive and correct strategies will allow it to prosper further
Competitor watch is necessary, especially with the prices
Year 2010 Results of Decisions Made Financials
Financials Against Competitors
Financials Against Competitors Debt/Equity
Against Competitors Financials
Significantly cut both work force and plant size to reduce operating costs and attempt to fix idle time (turnaround strategy)
Liquidated overstock of kids bikes.
Over the years we’ve exited all bike categories and recently entered the commuter market (retrenchment)
Began decreasing overspending on advertising
Increase number of bikes inspected
Paid off all of our debt (increase stock price)
Actions Steps Taken Areas of Focus Areas of execution
Reduce idle time
Improve quality of product and manufacturing to cut down on warranties and breakdowns.
Focus on creating higher products with better service
Walk away from unprofitable businesses
Increase stock price
In being back on track to profitability, Twisters
future growth strategies are clear and strong.
As an organization we seek to
start building our brand back up by re-launching bike lines we had to liquidate, in addition to spreading out into the racer bike segment.
expand our warehouse size, first back to the operating size we possessed years earlier, and then possibly seeking to go even larger to support the new ventures we are hoping to get into.
Re-hire a significant portion of our workers
For the short term, in order to pay off of our injection loan, we strive to focus on steadily gaining in the market over the next few years and getting back on our feet by attracting customers through brand loyalty and quality bikes. By growing in new, untapped markets we also hope to be able to increase our profits exponentially over the next couple of years. As a result of our past issues with production and debt we lost a lot of relationships with our distributors. By working out our relations and making our products available in more stores we hope to increase our profitability as well as get our name out there.
In addition to bicycles, we hope to be able to offer a wider variety of accessories and products. These items would include:
Company shirts, bicycle gloves, and riding apparel.
Indoor bicycles intended for use by consumers to either get indoor exercise or to cross-train in the off-season.
Our own line of bike care products such as lubes cleaners, tire pumps and bike covers.
Bike accessories such as bicycle locks for added security and reflector lights for consumer safety.
Launch an interactive website for consumers to use.
provide the consumer with information on Twister’s product information
create the “ultimate cycle experience”.
Our online website will consist of an area where consumers can read about and keep up on the latest information in the bicycle industry from new companies to sporting events taking place.
Create a social network for bicycle enthusiasts where they can have an open forum to chat with other cycling fans.
Over the next several years, Twister hopes to implement a new ERP system. Implementing an ERP system will help our company to unify our business processes, lower costs so we can provide a better return to our investors, and improve relations and delivery time with our suppliers.
Twister is looking to expand into foreign markets. At first we will venture in China and India as these areas have large populations and will offer us a significant growth opportunity. If our initial venture into overseas markets proves to be profitable, we may seek to expand our operations abroad in order to enable us to keep costs low and profits higher.
Expand beyond bicycles into other areas of transportation.
rising in popularity over the last few decades and we’d feel it would align well with our company’s strategy.
After acquiring a bit more capital, Twister seeks to offer the options of creating customizable bikes to our consumers.
Seek to partner with companies in the creation of themed bicycles. For example:
Partner with Disney to create a children’s bicycle
Partner with Dave Mirra to create a racer bike
In our products and our process
Rebuild and Recharge workers
Drive improved liquidity
Enhance financial controls
Raise more capital
Just to Summarize Future
Working Capital reduction
Top line growth
Other cash sources
Get Control over core flow
Offer new incentives
Engage the customer
Just to Summarize Future
Deliver cost savings
Provide a safer work environment
The environment is right
Management team is coming together
Changes in technology are making cost reduction opportunities huge