Contenu connexe Similaire à Mikes Bikes Business Simulation | Global 99.8th Percentile (20) Mikes Bikes Business Simulation | Global 99.8th Percentile3. The Past Eight Years
99.5%Percentile in Global SHV
6/8Years As The Market
Leader in SHV
$62MCumulative Profit
4. We believe that we are
the best company for
shareholders to invest,
and here’s why:
5. Our Main Objectives were:
✓ To get high shareholder values
✓ Create profit
✓ Increase Awareness of our bikes
✓ Stand out from competitors
✓ Learn from mistakes and improve
7. Mission Statement
Our mission is to satisfy our consumers by producing
premium quality bicycles. Through dedication in craft
we will insure our consumers to enjoy the cool breeze
and braise freely on the road.
16. • Our shareholders are our number one priority
• Share value growth
Shareholder Strategy
1880%
18. • No debt (0 DoE)
• High cash reserves: 20M+
• A fine balance
Obtaining High Growth
21. 0
55
110
165
220
2016 2017 2018 2019 2020 2021 2022 2023 2024
Industry Average Eagle Rider
$11.10 $13.45 $15.56 $18.62 $22.27
$36.34
$53.07
$68.69
$82.52
SHV Compares to The Industry Average
22. 0
55
110
165
220
2016 2017 2018 2019 2020 2021 2022 2023 2024
Industry Average Eagle Rider
$11.10 $14.99
$22.14 $27.42
$63.41
$107.88
$130.77
$170.03
$208.69
$11.10 $13.45 $15.56 $18.62 $22.27
$36.34
$53.07
$68.69
$82.52
SHV Compares to The Industry Average
23. $0.00
$3,500,000.00
$7,000,000.00
$10,500,000.00
$14,000,000.00
2016 2017 2018 2019 2020 2021 2022 2023 2024
Industry Average Eagle Rider
$5,610,544.00
$5,251,613.00
$4,905,539.50$4,950,859.25
$1,720,581.00
$2,016,911.50
$1,743,699.75$1,585,766.50$1,388,115.00
Profit Compares to The Industry Average
$0.00
$3,500,000.00
$7,000,000.00
$10,500,000.00
$14,000,000.00
2016 2017 2018 2019 2020 2021 2022 2023 2024
Industry Average Eagle Rider
24. $0.00
$3,500,000.00
$7,000,000.00
$10,500,000.00
$14,000,000.00
2016 2017 2018 2019 2020 2021 2022 2023 2024
Industry Average Eagle Rider
$12,234,940
$10,272,377
$10,015,673
$12,050,229
$9,289,826
$2,945,185$3,002,760
$1,762,234
$1,388,115
$5,610,544.00
$5,251,613.00
$4,905,539.50$4,950,859.25
$1,720,581.00
$2,016,911.50
$1,743,699.75$1,585,766.50$1,388,115.00
Profit Compares to The Industry Average
$0.00
$3,500,000.00
$7,000,000.00
$10,500,000.00
$14,000,000.00
2016 2017 2018 2019 2020 2021 2022 2023 2024
Industry Average Eagle Rider
$12,234,940
$10,272,377
$10,015,673
$12,050,229
$9,289,826
$2,945,185$3,002,760
$1,762,234
$1,388,115
26. 2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
18.40%
17.80%
15.70%
16.40%
16.80%
18.50%
19.00%
19.30%
20.00%
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
Market Share Progression
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
27. 2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
18.40%
17.80%
15.70%
16.40%
16.80%
18.50%
19.00%
19.30%
20.00%
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
Market Share Progression
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
30%
32%
34%
50%
100%
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
28. 2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
18.40%
17.80%
15.70%
16.40%
16.80%
18.50%
19.00%
19.30%
20.00%
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
Market Share Progression
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
30%
32%
34%
50%
100%
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
23.60%
20.10%
2016
2017
2018
2019
2020
2021
2022
2023
2024
0.00% 25.00% 50.00% 75.00% 100.00%
Adv2 420 Bikes Rocket
30. Not all channels are equal:
Marketing Research
Segment TV Internet Magazines
Road 10% 40% 60%
Mountain 40% 30% 50%
Youth 70% 20% 20%
+
Segment Advertising PR
Road Low High
Mountain High Low
Youth High Low
+
Channel Distribution Marketing Sensibility
31. Marketing Decision Analysis:
0
0.1
0.2
0.3
0.4
$0 $600,000 $1,200,000 $1,800,000 $2,400,000
TV Internet
Magazine
Mountain Segment
0
0.1
0.2
0.3
0.4
$0 $600,000 $1,200,000 $1,800,000 $2,400,000
TV Internet
Magazine
Road Segment
0
0.1
0.2
0.3
0.4
$0 $600,000 $1,200,000 $1,800,000 $2,400,000
TV Internet
Magazine
Youth Segment
32. What set us apart: Quantitative Analysis
5easy steps used to determine
advertising expenditures
33. What set us apart: Quantitative Analysis
Advertising
Expenditure
TV
Marginal
Improvement
Internet
Marginal
Improvement
Magazine
Marginal
Improvement
$0 0.0000 0.0000 0.0000
$200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195
$400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300
$600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290
$800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255
$1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210
$1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175
$1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140
$1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115
$1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095
$2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080
$2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070
$2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055
$2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050
$2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040
Example: Road Bikes
34. What set us apart: Quantitative Analysis
Advertising
Expenditure
TV
Marginal
Improvement
Internet
Marginal
Improvement
Magazine
Marginal
Improvement
$0 0.0000 0.0000 0.0000
$200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195
$400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300
$600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290
$800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255
$1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210
$1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175
$1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140
$1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115
$1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095
$2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080
$2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070
$2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055
$2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050
$2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040
Example: Road Bikes
Step 1: Determine advertising expenditure
35. What set us apart: Quantitative Analysis
Advertising
Expenditure
TV
Marginal
Improvement
Internet
Marginal
Improvement
Magazine
Marginal
Improvement
$0 0.0000 0.0000 0.0000
$200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195
$400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300
$600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290
$800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255
$1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210
$1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175
$1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140
$1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115
$1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095
$2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080
$2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070
$2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055
$2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050
$2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040
Example: Road Bikes
Step 2: Finding the corresponding audience proportion
36. What set us apart: Quantitative Analysis
Advertising
Expenditure
TV
Marginal
Improvement
Internet
Marginal
Improvement
Magazine
Marginal
Improvement
$0 0.0000 0.0000 0.0000
$200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195
$400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300
$600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290
$800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255
$1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210
$1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175
$1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140
$1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115
$1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095
$2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080
$2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070
$2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055
$2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050
$2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040
Example: Road Bikes
Step 3: Scale down advertising expenditure in $200,000 increments
37. What set us apart: Quantitative Analysis
Advertising
Expenditure
TV
Marginal
Improvement
Internet
Marginal
Improvement
Magazine
Marginal
Improvement
$0 0.0000 0.0000 0.0000
$200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195
$400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300
$600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290
$800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255
$1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210
$1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175
$1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140
$1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115
$1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095
$2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080
$2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070
$2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055
$2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050
$2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040
Example: Road Bikes
Step 4: Finding the corresponding marginal improvement in alternative channels
38. What set us apart: Quantitative Analysis
Advertising
Expenditure
TV
Marginal
Improvement
Internet
Marginal
Improvement
Magazine
Marginal
Improvement
$0 0.0000 0.0000 0.0000
$200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195
$400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300
$600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290
$800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255
$1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210
$1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175
$1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140
$1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115
$1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095
$2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080
$2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070
$2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055
$2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050
$2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040
Example: Road Bikes
Step 5: Comparing the sum of marginal improvement
to the scaled down expenditure
39. What set us apart: Quantitative Analysis
Advertising
Expenditure
TV
Marginal
Improvement
Internet
Marginal
Improvement
Magazine
Marginal
Improvement
$0 0.0000 0.0000 0.0000
$200,000 0.0040 0.0040 0.0033 0.0033 0.0195 0.0195
$400,000 0.0184 0.0144 0.0195 0.0162 0.0495 0.0300
$600,000 0.0400 0.0216 0.0468 0.0273 0.0785 0.0290
$800,000 0.0648 0.0248 0.0750 0.0282 0.1040 0.0255
$1,000,000 0.0884 0.0236 0.0972 0.0222 0.1250 0.0210
$1,200,000 0.1088 0.0204 0.1131 0.0159 0.1425 0.0175
$1,400,000 0.1256 0.0168 0.1236 0.0105 0.1565 0.0140
$1,600,000 0.1388 0.0132 0.1305 0.0069 0.1680 0.0115
$1,800,000 0.1496 0.0108 0.1353 0.0048 0.1775 0.0095
$2,000,000 0.1580 0.0084 0.1389 0.0036 0.1855 0.0080
$2,200,000 0.1648 0.0068 0.1413 0.0024 0.1925 0.0070
$2,400,000 0.1700 0.0052 0.1431 0.0018 0.1980 0.0055
$2,600,000 0.1744 0.0044 0.1443 0.0012 0.2030 0.0050
$2,800,000 0.1780 0.0036 0.1455 0.0012 0.2070 0.0040
Example: Road Bikes
Step 5: Comparing the sum of marginal improvement
to the scaled down expenditure
40. Marketing Decisions
Advertising Public Relations
TV Magazine Internet TV Magazine Internet
Mountain $0.00 $1,000,000.00 $1,250,000.00 $0.00 $0.00 $0.00
Road $0.00 $0.00 $0.00 $0.00 $1,000,000.00 $1,000,000.00
Youth $1,800,000.00 $0.00 $0.00 $0.00 $0.00 $0.00
43. “Eagle Rider dominates the road segment with the lightning fast 420 Bikes.”
July, 2020 Issue, Cycling Magazine
45. What have we learned:
✓ It is very important to review financial statements
✓ There has to be a balance between price, marketing and
distribution
✓ Cash reserves should be used wisely
✓ Continuously adjust decision
46. To Summarize..
Working as a team gave us the opportunity to know each
other, share different ideas, compromise and learn from each
other. Mike’s Bikes has given us a better understanding of
the real world and how a manufacturing company works.