This document outlines the key decisions made by Real Time Bikes, a bicycle manufacturing company, from 2015-2019. It discusses the company's SWOT analysis, mission/vision statements, and decisions made regarding advertising, pricing, production, quality control, and more for each year. By 2018-2019, the company was experiencing cash shortages and mounting debt, forcing cuts to advertising, staffing, and other areas in an unsuccessful effort to turn the business around.

1. Real Time
Bikes
CEO – Tom Dolan
Operations – Drew Cummings
Finance – John Bishop
Advertising – AJ Koberski

2. Company SWOT
 Strengths:
 Communication
 Organization
 Brand Awareness
 Kids Bike sold well
 Set up time was low
 Weaknesses:
 Can’t Design Bikes
 Can’t keep money
 Can’t keep track of
expenditures
 Can’t run a business
 Couldn’t focus on
one market

3. Company SWOT
 Opportunities:
 Kids bike market
size is large
 In process of
creating commuter
bike
 Plant size is large.
More profits in the
future
 Potential support for
store
 Threats:
 Other companies
success
 Prices sensitive
market
 Advertising sensitive
market
 Our first rollover set
up us for a being an
unsuccessful
company

4. Mission/Vision Statements
 Mission Statement: We want to provide our
community with quality cycling products,
unyielding customer service, and a passion
for bicycling’s abundant opportunities.
 Vision Statement: Striving to be the world’s
leading bike manufacturer while maintaining
sustainable long-term competitive advantage.

5. Tasks for each Department
 CEO – Tom Dolan
 Focused on overseeing decisions made by
the Vice Presidents
 Worked with design team for creating new
bikes
 Checked over the decisions for each roll over

6.  Vice President of Operations – Drew
Cummings
 Developed and oversaw:
 Workforce
 Plant Size
 Batch size and setup time reduction costs
 Quality (pay raises, training, maintenance,
research for quality, and inspection %)

7.  John Bishop – Vice President of Finance
 Controlled issuing and repurchasing equity
 Dividends
 Oversaw long-term debt
 Worked with investor relations

8.  Vice President of Marketing – AJ Koberski
 Supervised product pricing
 Organized percentages and pricing on each
bikes advertising
 Ensured Public Relations was evenly
balanced with each bike

9. Decisions for year 2015
 Advertising Cost: $2,000,000
 Public Relation Cost: $1,000,000
 Branding Cost: $1,600,000
 Total Cost: $4,600,000

10. Decisions for 2015
 Increased price of bike from $1,600 to $2,100
 Added 20,000 SCU for plant size
 Increased batch size from 200 to 1,150
 Setup time reduction $2,750,000
 Maintenance Expenditure $2,750,000
 Quality Systems $3,000,000

11. Decisions for 2015
 Repurchased Equity $400,000
 Dividend per share $0.12
 Debt repaid $500,000

12. Decisions for 2015
 Design Goal: Develop and dominate kids bike
 Style and Design specs were perfect
 Prime cost $35
 TOO LOW
 Caused bike to fail

13. Decisions for 2016
 Advertising Cost: $2,150,000
 Shifted Public Relations of our Magazines higher,
so we could make up some of our lost sales
 Branding stayed the same. Our brand awareness
was good.
 Decreased bike shop and sport stores support by
$800,000.
 Department stores retail margin dropped by 2%.

14. Decisions for 2016
 Decreased Quality Systems by $500,000.
 Decreased inspections by 5%.
 Decreased raw materials from 5 weeks to 1
weeks.
 Decreased price of adventure bike by $2,100
to $1,400.
 Safety stock decreased from 4 weeks to 1
week.

15. Decisions for 2016
 Designed a new kid’s bike.
 Specs and design was perfect.
 Prime cost was changed from $35 to $58.

16. Decisions for 2017
 Kids Bike Advertising
 Total Spent: $1,300,000
 Adventure Bike Advertising
 Total Spent: $1,350,000
 Decreased by $800,000
 Total Spent on Ads: $2,650,000
 Branding Cost went from $1,600,000 to
$3,000,000

17. Decisions for 2017
 Increased sport stores by $300,000.
 Increased department stores by $500,000.
 Also changed retail margin of department
stores by 7% (36%-43%).
 Decreased bike shops by 300,000 and their
retail margin by 3%.

18. Decisions for 2017
 Purchased 10,000 SCU
 Increased workers by 5
 Set Up Cost: $4,500,000
 Quality Systems $3,500,000
 Decreased maintenance by $500,000
 Increased Adventure price by $200
 Increased production by 13,000
 Produced 130,000 kids bike

19. Decisions for 2017
 Launched Kid’s bike.
 Design was a success.
 Chance for Real Time Bikes to make a come
back.

20. Decisions for 2018
 ***Warning: Decisions Altered!***
 You experienced a shortage of cash at the
beginning of last year. Some of your decisions
had to be altered to avoid running out of cash.
Decisions will have been reduced in this
order:
 Dividends, equity repurchase, repayment of
debt, plant purchase product development

21. Decisions for 2018
 Advertising Spent on Adventure Bike:
 $450,000
 Advertising Spent on Kids Bike:
 $295,000
 Spent $0 on Public Relations
 Trying to save money where we can

22. Decisions for 2018
 Decreased workers by 15.
 Purchased 5,000 SCU.
 Maintenance Expenditure: $2,250,000.
 Quality Systems: $3,250,000.
 Set Up Time: $4,500,000.
 Tried to reduce prices but keep production %
up.
 Increased workers salary by $2,500 in 2 years
due to major cut.

23. Decisions for 2018
 Increased support of sport stores and
department stores to $1,000,000 each.
 Increased retail margin by 2% each (43%-45%)
 Increased price of kids bike by $90.
 Decreased production of kids bike by 12,000

24. Decisions for 2019
 Spent $20,000 on public relations on the
Adventure Bike.
 Fired 5 employees.
 (20 employees fired in the past 2 years)
 Couldn’t make any of changes.

25. Decisions for the future
 The $40,000,000 we received would not have
helped.
 At that point we were $28,000,000 in debt.
 We would take $12,000,000 for the next turn.
 We would have created a new commuter bike.
 Increased production to make more sales.
 Alter retail price to be competitive.