paper unit 5
qtavnf10901
summaryofcompany.docxSummary of Decisions
Corporate
Company Name
Eloquent Bikes 3D
Executive Responsibilities
Goals and Strategy
Target markets: 1 - Recreation, 2 - Speed, 3 - Mountain Mission statement: The mission of Eloquent Bikes 3D is to be the world's leading producers of 3D printed, carbon fiber bikes Our mission is to produce bikes at the highest quality for the best value. Eloquent Bikes 3D strives to enhance the experiences of the biking community and produce bikes for everyone. Strategic directions: Corporate culture
earn customer trust and business every day
act with integrity in everything we do
treat everyone fairly and value diversity
be accountable for our actions
win as a team
give back to the community
offer excellent customer service
create shareholder value
build strong relationships
embrace the entrepreneurial spirit
be a good corporate citizen
deliver value to all stakeholders
Market orientation
focus on value-driven markets
focus on environmentally responsive markets
Corporate objectives
market presence (market share, sales volume...)
human resources (compensation, empowerment and endearment)
stewardship (environment, carbon footprint, energy consumption, green)
good neighbor (community, society)
Corporate strategic thrusts: Short-term vs. Long-term
Long-term perspective - defer profits in order to build a strong competitive position
Willingness to Take Risk
Risk-taker - willing to take chances to get ahead
Market Leadership
Pioneer - first to market to get ahead
Firm's Top Competitive Forces (pick 4 to 6)
Superior customer value
Superior manufacturing - high reliability and efficiency
Strong asset management (productive use of resources)
Embrace conscious capitalism
Marketing
Modify Brand
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Essentials |
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Base components |
yes |
yes |
yes |
yes |
|
Bike frame |
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|
|
|
Relaxed comfortable design for easy riding (Comfort) |
no- |
yes |
no- |
no- |
|
Rugged agile design for rough terrains (Rugged) |
yes |
no- |
no- |
no- |
|
Sleek aerodynamic design for speed (Aerodynamic) |
no- |
no- |
yes |
yes |
|
Carbon fiber material |
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|
|
|
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Enriched - lighter, stronger |
yes |
yes |
yes |
yes |
|
Tires |
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|
|
|
|
Mountain - high grip |
yes |
no- |
no- |
no- |
|
Hybrid - road and off-road |
no- |
yes |
no- |
no- |
|
Racing - fast |
no- |
no- |
yes |
yes |
|
Brakes |
|
|
|
|
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Standard |
yes |
no- |
no- |
no- |
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Precision |
no- |
yes |
yes |
yes |
|
Handlebars |
|
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Basic straight |
yes |
no- |
no- |
no- |
|
Comfort straight |
no- |
yes |
no- |
no- |
|
Basic drop down |
no- |
no- |
yes |
yes |
|
Gears |
|
|
|
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14 speed (2 x 7) |
no- |
yes |
no- |
yes |
|
24 speed (3 x 8) |
yes |
no- |
yes |
no- |
|
Seat |
|
|
|
|
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Polymer gel all-purpose |
yes |
no- |
no- |
no- |
|
Polymer gel comfort (Comfort, Rugged) |
no- |
yes |
no- |
no- |
|
Polymer gel racing (Aerodynamic) |
no- |
no- |
yes |
yes |
|
Accessories |
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Reflectors (front, back, spokes, pedals, wheel rims) |
no- |
yes |
yes |
yes |
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Decals |
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Colorful thin brushstrokes |
no- |
yes |
yes |
yes |
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Lights |
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Standard |
no- |
yes |
no- |
no- |
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Suspension/shock absorbers |
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Front (Comfort, Rugged) |
yes |
yes |
no- |
no- |
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Packaging |
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Standard |
yes |
yes |
yes |
yes |
Feature R&D
|
R&D Feature |
Already invested |
Cost this quarter and every quarter until finished |
Quarter available for design into new brands |
R&D cost if designed in 1 quarter |
R&D cost if designed in 2 quarters |
Material Cost |
|
Packaging: Sustainable |
0 |
355,321 |
|
355,321 |
298,788 |
7 |
Total Expenses: 355,321
R&D Licensing
|
Current Quarter Agreements |
|||||
|
Technology |
Licensor |
Licensee |
Price |
Starting Quarter |
Status |
|
Suspension/shock absorbers: Full suspension (front and back) (Comfort, Rugged) |
Tandem Technologies |
Eloquent Bikes 3D |
275,000 |
6 |
Proposal submitted, your turn |
Current Quarter Agreements
Modify Ad
|
|
Sitting on Top
[ |
Smooth & Sleek
[ |
Soar the Sky
[ |
Faster Than Eve
[ |
|
Mention brand name |
1 |
1 |
1 |
1 |
|
Local sales & service |
9 |
7 |
2 |
2 |
|
Special price rebate |
2 |
4 |
|
|
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Picture of riders on a greenway |
|
3 |
|
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Picture of a rider on a steep trail |
8 |
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Picture of road race |
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3 |
9 |
|
Added safety - reflectors everywhere! |
|
|
7 |
|
|
Tackle steep climbs with more gears |
6 |
|
|
|
|
Enriched carbon fiber - lighter, stronger, & affordable |
5 |
5 |
4 |
3 |
|
Elite look - a ride of distinction |
|
8 |
|
|
|
Enjoy your ride - carbon fiber light |
|
6 |
5 |
4 |
|
Mountains are no longer difficult |
3 |
|
|
|
|
Top speed: the lightest, strongest carbon fiber available |
|
|
|
8 |
|
Ride a wind-cheater |
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|
9 |
7 |
|
Fast and furious |
|
|
6 |
5 |
|
Lots of fun to ride |
7 |
|
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Grab the path with high tread tires |
4 |
|
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Roll fast with racing tires |
|
|
8 |
6 |
|
Easy riding on a comfort seat |
|
2 |
|
|
Regional Media
|
World Market |
|||||
|
Media |
Cost |
|
|
|
|
|
Leisure & Entertainment |
10,000 |
0 |
2 |
0 |
0 |
|
Health & Fitness Magazines |
7,000 |
0 |
1 |
0 |
0 |
|
Biking Magazines |
4,500 |
1 |
1 |
2 |
1 |
|
Sport Magazines |
10,000 |
1 |
0 |
1 |
1 |
|
Business Magazines |
9,500 |
0 |
0 |
1 |
1 |
|
General News Magazines |
8,000 |
1 |
1 |
0 |
0 |
|
Total |
|
22,500 |
38,161 |
27,897 |
24,000 |
World Market
Total Number of Inserts: 15
Total Expenses: 112,558
Manage Web Pages
|
Manage Web Pages |
||
|
Web Page Content |
Selection of Segment and Keywords |
Regions Deployed with Quarterly Cost |
|
|
|
World Market |
|
Sitting on Top |
|
|
|
Smooth & Sleek |
|
|
|
Soar the Sky |
|
|
|
Faster Than Eve |
|
|
Manage Web Pages
Total Quarterly Cost: 5,000
Search Engine Marketing
|
|
|
|
Average Maximum Industry Bid |
World Market |
|
|
2.52 |
|
Smooth & Sleek |
|
|
Maximum Bid |
|
|
Maximum Ad Budget |
|
Keywords Targeted to Recreation Segment
|
|
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Average Maximum Industry Bid |
World Market |
|
|
2.62 |
|
Sitting on Top |
|
|
Maximum Bid |
|
|
Maximum Ad Budget |
|
Keywords Targeted to Mountain Segment
|
|
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Average Maximum Industry Bid |
World Market |
|
|
2.16 |
|
Soar the Sky |
|
|
Maximum Bid |
|
|
Maximum Ad Budget |
|
Keywords Targeted to Speed Segment
Total Budget: 4,000
Social Media
|
World Market |
|||||
|
Social Media |
Start |
Stop |
Status |
Setup Cost |
Quarterly Budget |
|
Social Networking |
|
|
operational |
8,000 |
|
|
Blog, Newsletter |
|
|
- |
10,000 |
|
World Market
Total expenses in social media: 19,500
Price and Priority
|
World Market |
||||
|
Brand |
Available for Sale |
Retail Price |
Price Rebate |
Sales Priority |
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World Market
Buy Market Research
Buying for: World Market
Total Expenses: 15,000
Human Resources
Sales Force Compensation
|
|
Annual Salary |
Health Benefits Package |
Weeks of Vacation |
Pension [% of salary] |
Compensation per year |
|
World Market |
|
|
|
|
43,096 |
Production Supervisor Compensation
|
Bangalore, World Market |
||||
|
Annual Salary |
Health Benefits Package |
Weeks of Vacation |
Pension [% of salary] |
Compensation per year |
|
|
|
|
|
43,096 |
Bangalore, World Market
Production Worker Compensation
|
Bangalore, World Market |
||||
|
Annual Salary |
Health Benefits Package |
Weeks of Vacation |
Pension [% of salary] |
Compensation per year |
|
|
|
|
|
30,975 |
Bangalore, World Market
Special Programs
|
Professional Training Program |
|
|
|
|
|
Typical cost per person |
1,000 |
|
Expenditure per person |
|
|
Total for Professional Training Program |
32,000 |
Professional Training Program
|
Sales Contest for Top Third of Sales People |
|
|
|
|
|
Typical cost per person |
800 |
|
Monetary value of vacation |
|
|
Total for Sales Contest |
8,800 |
Sales Contest for Top Third of Sales People
|
Demonstration Kit |
|
|
|
|
|
Typical cost per demonstration kit |
50 |
|
Expenditure per demonstration kit |
|
|
Demonstration kit expires in quarter |
8 |
|
Total for Demonstration Kit |
1,600 |
Demonstration Kit
Total Expenditures: 42,400
Promotions
|
World Market |
||
|
Brand |
Cash Bonus for Top Third of Sales and Service People Typical: 100 |
Free Gift (SPIFF) for Top Third of Sales and Service People Typical: 50 |
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World Market
|
Total Sales and Service People in Region |
32 |
|
Total Expenses |
6,000 |
Sales Channel
Open Store
World Market
Operational: New York City, Rio de Janeiro, Amsterdam, Bangalore
Total cost: 136,000
Hire Sales People
|
World Market |
||||||
|
City |
Annual Salary |
Total Sales and Service People |
Specialized Training with Quarterly Cost |
|||
|
|
|
|
300 |
250 |
400 |
400 |
|
|
|
|
Service |
Recreation |
Mountain |
Speed |
|
New York City |
43,096 |
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Rio de Janeiro |
43,096 |
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Amsterdam |
43,096 |
|
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Bangalore |
43,096 |
|
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|
|
World Market
|
Total number of sales and service people in the prior quarter |
32 |
|
Total number of sales and service people in the current quarter |
32 |
|
Net change in number of sales and service people in region |
0 |
|
Cost to hire new sales and service people |
0 |
|
Cost to lay off sales and service people |
0 |
|
Cost to employ sales and service people for the quarter |
355,318 |
Total sales and service people budget: 355,318
Manufacturing
Fixed Capacity
Fixed capacity available per day in current quarter: 104 Planned increase in fixed capacity: 0 Fixed capacity available per day in next quarter: 104
Operating Capacity
|
Current Quarter |
||
|
|
Units per Day |
Units per Quarter |
|
Fixed capacity |
104 |
6,760 |
|
Operating capacity |
|
4,615 |
|
Effective operating capacity after adjustment for worker productivity |
56.80 |
3,692 |
|
|
|
|
|
Effective operating capacity needed for demand projection |
0 |
0 |
Current Quarter
|
Projected production productivity |
|
|
New direct labor cost/unit of operating capacity |
93 |
|
New overhead cost/unit of operating capacity |
15 |
|
Expense to change operating capacity (to be added to overhead) |
0 |
Brand Production
|
Brand |
Produce |
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Overtime
|
Maximum Overtime per Day |
|||
|
Overtime |
Units per Quarter |
Productivity |
Average Labor Cost/Unit |
|
No overtime |
3,692 |
80.0% |
92.83 |
|
1 hour |
4,112 |
79.2% |
104.18 |
|
2 hours |
4,484 |
77.7% |
114.63 |
|
3 hours |
4,813 |
75.8% |
124.62 |
|
4 hours |
5,095 |
73.6% |
134.53 |
Maximum Overtime per Day
System Improvement
Employee Survey
Follow-up Studies
Quality Inspection
Quality Inspection: Bike frame, Carbon fiber material, Tires, Brakes, Gears Estimated Inspection and Defect Repair Cost: 0
Improvement Actions
|
Improvement Actions |
||||
|
Action to Improve System |
Potential Impact on Morale |
Potential Impact on Reliability |
Cost to Operate |
Operate |
|
|
|
|
|
|
|
Retrofit production facility with system to collect, store, and dispose of all chemicals. |
92 |
64 |
0 |
|
|
Separate employees from chemicals with respirators, protective clothing, and gloves. |
84 |
60 |
1,025 |
|
|
Create a "clean room" production facility by controlling the airflow with a super clean, reverse-flow, air ventilation and filtration system. |
95 |
81 |
0 |
|
|
Place air-filtering plants throughout the production facility. |
97 |
50 |
0 |
|
|
Join a producer consortium to develop economical and environmentally friendly ways to recycle carbon fiber products. |
83 |
|
0 |
|
|
|
|
|
|
|
|
Cross-train employees to work on multiple tasks within their department. |
94 |
88 |
0 |
|
|
Train employees to help with departmental planning, including issues related to workflow, equipment, materials, job assignments, vacation scheduling, etc. |
90 |
86 |
205 |
|
|
Schedule time for department planning with coworkers and supervisors. |
88 |
82 |
1,025 |
|
|
Develop teamwork skills, including interpersonal, communication, and negotiation skills. |
87 |
78 |
0 |
|
|
|
|
|
|
|
|
Set up a statistical process control (SPC) program to monitor all materials, parts and manufactured components. |
84 |
96 |
0 |
|
|
Train operators to detect errors and adjust machines so they produce within tolerance. |
87 |
93 |
7,688 |
|
|
|
|
|
|
|
|
Measure and reward purchasing agents on both the cost and quality of incoming materials, parts, and services. |
83 |
91 |
17,750 |
|
|
Work with suppliers to launch and maintain their own quality improvement programs. |
85 |
96 |
0 |
|
|
|
|
|
|
|
|
Provide fitness center for employees. |
84 |
|
0 |
|
|
Provide daycare services for employees. |
82 |
|
1,025 |
|
|
Setup and run a health clinic that includes general practitioners plus a few specialists for employees only. |
87 |
|
0 |
|
|
Setup and run a health clinic that includes general practitioners plus a few specialists for the immediate families of employees. |
92 |
|
0 |
|
|
|
|
|
|
|
|
Set up a grant program to supplement the learning experiences at local schools. |
87 |
|
0 |
|
|
Provide seed money to create a technical training school and recruit its students as employees. |
85 |
|
0 |
|
|
Help to create bike trails that connect the residential areas, community center and the industrial section where the production facility is located. |
83 |
|
0 |
|
|
Help to create a series of parks throughout the community, but first near the production facility. |
81 |
|
0 |
|
|
Work with local officials to expand and repave the stretch of road from the apartment complexes to the production facility. |
85 |
|
0 |
|
|
Total |
|
|
28,718 |
|
Improvement Actions
Finance
Stock
|
Stock Type |
Name of Owner |
Shares |
Price Per Share |
Total Amount |
Quarter |
|
Common Stock |
Executive Team |
15,000 |
100 |
1,500,000 |
1 |
|
Common Stock |
Executive Team |
5,000 |
100 |
500,000 |
2 |
|
Common Stock |
Executive Team |
5,000 |
100 |
500,000 |
3 |
|
Common Stock |
Venture Capitalists |
25,000 |
100 |
2,500,000 |
4 |
Mountain
11
4
3
10
1,000
4
2
0
0
0
71
80
Recreation
3,000
Speed
Inactive
---
2.52
2000
2.2
1000
2
3500
6000
1100
200
4
1300
1
1200
100
2
1250
3
32000
Full coverage
3 weeks
4
Q6
23000
4
1000
800
50
100
