BUSINESS GAME Report, October 2011

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Transcript

  • 1. BUSINESS GAMEQiwei WANG BICYCLE BUSINESS Leisure & Competition FRANCE-NETHERLANDS-SWEDENSKEMA BUSINESS SCHOOL REFERENCE TEAM: 2011-2012 UPSTRAT_275_8 M1-PGE Program
  • 2. TABLE OF CONTENTSOVERVIEW1° FINANCIAL UNIT «A business where the only goal is to make2° PRODUCTION UNIT money, it is a really poor business» Henry FORD3° COMMERCIAL UNIT4° H.R. UNITTHE FUTURE...
  • 3. OVERVIEWMa xim - To produce the 3 kind ofOp eS M bicycles (Highbike-Roadbike- era OU Easybike) tio n m LEILT I - To be present on the an LET different market as soon as ag possible (France- er Alex S Netherlands-Sweden)E Mar andra keti ng m SER ana S - To be a large company as possibleA I Pierr ger - To provide a large amount e-Ed of bike with enough options, ouar choses, prices with a certain Finan d TA cial m LLINEA O R&D levelM anag er U N - To be a well company that take care of his employees and their efficiencies
  • 4. FINANCIAL UNIT CONTENTS➩Turnover (2012-2018)➩Net Result (2012-2018)➩Cash Flows (2012-2018)➩Economic Firm Value (2012-2018)➩Solvency Ratio (2012-2018)➩Balance Sheet (2018)➩Income Statement (2018)
  • 5. TURNOVER 30000 22500 20665 20147 18753 16862 15000 14107 7500 5707 0538 2015 2016 2017 2018 2012 2013 2014 We have a growing activity and we yield, each year, a growing turnover. Since 2013, we are the first company in term of turnover. We are second in 2018.
  • 6. NET Result 1844 2000 1500 1209 732 1000 217 725 -6 500 0 -500 -1322 -1000 2012 2013 2014 -1500 2015 2016Despite of a growing activity, 2017 2018our company collapsed. we fell down in 2015 in the bankruptcy process. This difficult situation can be explained by the only fact, that we don’t have readed and anticipated the market fluctuation; we had done some wrong measures about our operations, therefore we have recorded a huge amount of unsolded bikes. this have represented amazing lost of money (3 069 K€) But we have stopped the bleeding and restarted the company.
  • 7. Cash FlowEconomic Firm Value 10000 9209 7500 7992 5000 5568 2415 2500 3176 1781 944 1278 322 1999 19 1397 0 783 -814 -2500 2012 2013 2014 2015 2016 2017 2018
  • 8. SOLVENCY ratio 68 70.00 49 52.50 38 36 34 35.00 26 17.50 2012 2013 1 2014 2015 0 2016 2017 2018
  • 9. BALANCE SHEET-Last cycle (2018) We have to spotlight several financial aspects: - Asset, we have «2754» fixed assets that represent a good point because this represent a guarantee for the company to be more solvent and serious for banks. this is what we have in our company... we have also «2968» in cash that is a good point too, because this is a second security for the company if she has to be faced with some financial problems. - Liabilities, we have not a bank overdraft that’s a good news; We have just short-term debt for «2342» which can explained thanks to the suppliers debt (1980), because we bought a lot of bikes add in our production...
  • 10. INCOME STATEMENT- Last cycle (2018)
  • 11. PRODUCTION UNIT PRODUCTION FORECAST REALIZATION 0 12500 25000 37500 50000 Highbike 2016 Roadbike Easybike 0 10000 20000 30000 40000HighbikeRoadbike 2018Easybike
  • 12. COMMERCIAL UNITMARKET SHARES 2018 ➩LEADER on the EASYBIKE market in each country ➩LEADER on the ROADBIKE market in Netherlands ➩CHALLENGER on the ROADBIKE market in France ➩CHALLENGER on the HIGHBIKE market in France
  • 13. FRANCE NETHERLANDSHIGHBIKE SWEDEN 30 22.5 20.5 18.3 17.2 15 16.4 15 14.5 14.1 12.5 12.7 12.49.89.4 9.1 10.8 7.5 8.8 2012 2013 2014 2015 0 2016 2017 2018 CHALLENGER: LEADER: France-2013/14/18 Netherlands-2014 Netherlands-2013 Sweden-2017
  • 14. FRANCE NETHERLANDSROADBIKE SWEDEN 30 29.7 25 25.9 23.3 20 20.2 17.3 18.3 16.7 15 13.7 13.4 14.7 12.7 11.5 10 10.5 6.9 5 2012 2013 2014 0 2015 2016 20170.2 2018 LEADER: CHALLENGER: Netherlands-2014/15/18 France-2013/14/18
  • 15. FRANCE NETHERLANDS EASYBIKE SWEDEN 100 100100 75 50 49.2 35.7 37 29.1 30.234.326.1 26.5 26.8 25 27.22012 2013 2014 2015 0 2016 2017 2018 LEADER: CHALLENGER: France-2014/15/16/17/18 Sweden-2017 Netherlands-2014/15/16/17/18 Sweden-2018
  • 16. Advertising % TO netIn 2012, as welaunched our 3000company we had toinvest a lot, so we 2304 2263 2360 2360 2250decided not to invest 1664too much in 1500marketing at the 760beginning. 7 13.3 750 38 11.8 13.7 2012 2013 12.1 11.4 2014 11.7 0 2015In 2013, we had the 2016 2017capabilities to invest 2018more in advertising, so During the following year we’vewe did it, as we had lost kind of stabilized the level ofmarket shares because investment in marketing aroundother groups had invest 12% of TO net.a lot in marketing fromthe beginning.
  • 17. HUMAN RESOURCE UNIT2018 STAFF SIZE OUTLETS Production= 52 FRANCE= 22Administration= 42 NETHERLANDS= 22 Head= 2 SWEDEN= 4
  • 18. Cycles 2018 2012 Administrative staff Production staff Investment! - Better Motivation - Better Motivation - Training - Better Skill - Better Faith - Bonus - Better Faith - Good Efficiency - Remuneration - Better Efficiency
  • 19. THE FUTURE... After that the company collapsed, we had to reduce our expenditures, and to do a better measurement about our operations. At present, the company is restarted well and better. we must to take back our investment. as in R&D, production equipment and training.According to the Highbike market, the amount of bike will fall. Thus, we have to get the rightmeasure for our next operations (reduce the Highbike forecast). More and more the destiny of our company will be to stay focused on the Easybike market and to stay leader on it. Ourcompagny position is to provide a high quality of bikes, with a high price. For this we have to invest in R&D, in order to provide a large option range. Our compagny has good capabilities and a strong capacity of reaction as you can see in the pass (bankrupt). the compagny has a reliable experience in the different markets for the different kind of bikes. So she is able to get right decisions for its operations and strategies.
  • 20. THE DEAL The aim is to present you two important aspects ➩A profitable company ➩A company without risk After this, we will be able to provide you our company price and may be make a deal...
  • 21. Profitability 17 20 Operating Profitability 14.415.1 14.6 15.5 15 9.7 11.2 7.2 10 1.7 3 5 2012 2014 2016 0 2018 2020 Weak recovery FORECAST Thanks to our strategy, we will be able to yield some The bankrupt is now far away, is time to benefits and make reinvest and to consolidate our leader more profit, as you position in the Easybike market, and can see with our stay challenger in the Roadbikeprofitability forecast... market...
  • 22. We are a reliable & liable company that limited the risk... Thanks to our business plan, the future profitability represents our organizational strategy and our operations that we have done. With this presentation, you know that our company is able to obtain this objectives!
  • 23. OUR COMPANY PRICE: 10 000 K€ (10 000 000€)BICYCLE BUSINESS REFERENCE TEAM: Leisure & Competition UPSTRAT_275_8FRANCE-NETHERLANDS-SWEDEN We staying at your disposal for any information... Thank you!
  • 24. Another method to calculate how to sell our company and to determine its price... 1° cash flow statement Discounted Cash Flow= Net Result + Depreciation + Exceptionnal ítems – NMWC – employees participation– investment Discounted Cash Flow= 725+ 162 + 180 – 118 – 926 – ( 2754 – 3 307)= 576 (Evolution de 576k€ de trésorie sur la prochaine année) 2/ Debts values on equity Indebtedness net= (Short-term debt + Loan)/ Equity= ( 2395 + 1202) / 3985= 0,90 (inférieur à 1 donc elle augmente la potentielle valeur de l’entreprise par 10 %) 3/ Goodwill/badwill Goodwill= 4 499k € Final price (576 + 4499 ) x ( 1+ 10%)= 5 582,5 k€