D083 Task 1

RXM1: Business Performance Report Cutting Edge Bikes Business Performance Report Student ID: 001440404 Date:01/17/2022 A. See Attached B. See Attached C1. Business Overview Cutting Edge Bikes is a bicycle manufacturer that builds bikes out of carbon fiber, which makes the bikes very light weight, but strong. Cutting Edge has the capabilities to print 3D bikes to make more convenient for prospective consumers. Since they have the 3D capabilities, they can sell more bikes for less compared to their competition. Cutting Edge was able to expand its operations into multiple countries. First, they started in Amsterdam since they were able to find out that they have a huge population for recreational biking. Once they were selling reasonably well in Amsterdam, they started manufacturing in New York. New York had a variety of bike riders, from mountain biking to speed biking. Cutting edge was now producing all 3 types of bicycles, recreational, mountain and speed and eventually started selling in two other markets, Rio de Janeiro and Bangalore. The bikes at Cutting edge were manufactured in a factory in Bangalore and since they utilized a 3D printer, they were able to print bikes out for customers right then and there for measurement reasons and comfortability. Once the 3D printed bike was okayed by the customer, they then sent the measurements and order off to the factory to be built. This made it so Cutting Edge did not have to have a warehouse full of bikes or shops packed with bikes. It was cutting edge technology. The manufacturer then was able to build the bike within a day and then shipped either directly to the customer or to the bike shop within a couple of days. C2. Financial Analysis Marketing and Advertising Marketing was a struggle in Q2 and Q3. I felt like we were advertising a lot and putting a lot of work into it, but it seems that we were putting too much information in our advertisements. So, in Q4 we put a lot more money into advertising and expanded more into the world market. Instead of having only 2 bikes in the world market we expanded it to 4. In Q5 we revised some ads and added new bikes to advertise, which helped increase our sales a lot. By the time Q6 came around we spent a lot on advertising, but not as much as Q5. All in all, we spent the most on advertising than all the other companies. I don't think that was the best route, but we ended up being successful in the end. My thought process was if we spend a lot on advertising then more people will see the advertisements and buy our bikes. PAGE 1
RXM1: Business Performance Report Business Performance Report Template Pricing (Including Rebates) In Q2 I had only offered a rebate on one of the bikes. Well, I saw that the rebate bike had sold the most out of all the bikes, so the next quarter I decided to leave it the same, thinking that there would be a big jump on sales for that bike, but unfortunately it was stagnant. So Q4 I decided to add a rebate to another bike. Which that helped me get more than 1 million sales trophy for the quarter. Then Q5 I added another rebate, but for a more significant amount and I was able to receive more than 1 million in sales again and Top Demand Trophy. By Q6 I now had 3 bikes that receive rebates and every quarter receiving more than 1 million in sales trophy. Also, the bikes that I had have a rebate were the top sellers most of the time, so I tried to use that to my advantage. In Q2 and Q3 I did not have the option to add into any R&D. In Q4 when I was able to, I took it slow initially and had a total of 3 projects, 2 were to be done by next quarter and 1 done in quarter 6. In Q5 I added some more R&D to the company because I feel like if you are not constantly improving your product and keeping up with the growing and changing market your business will fail. By adding more R&D each quarter I think it helped Cutting Edge become successful. The income statement shows that as I raised the amount of R&D, so the newer products, the more successful my bike shop was. C3. Ethical Decision-Making Cutting Edge took great care and made sure their employees were taken care of. We feel that if the employee is taken care of then they in turn will take care of the customer and creates a chain reaction. We made sure they were taken care of with providing the best benefits offered out of all the competitors. Creating an ethical environment for our employees then creates an ethical environment for our customers. PAGE 2
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