Essay about Mikes Bikes Report

A. If selling on low price, what is the implication for decisions you will make on spending (Advertising, PR, Branding, Channel Support, Quality, Efficiency, etc.)?

review of the decisions and performances for the time period from January 1st, 2015 to December

The company has been functioning well in terms of generating profit and demand so far. However, there will be a 20% increase in demand for the next month of operations as predicted by management, and the production and supply management's problems may come as a problem they can no longer afford.

1. Marketing specialists at Napanee Beer Co. developed a new advertising campaign for summer sales. The ads were particularly aimed at sports events where Napanee Beer sold kegs of beer on tap. The marketing group worked for months with a top advertising firm on the campaign. Their effort was successful in terms of significantly higher demand for Napanee Beer's keg beer at sports stadiums. However, the production department had not been notified of the marketing campaign and was not prepared for the increased demand.

     There are two basic types of motorcycles. One type is made for riding on smooth

The first time I ever rode a dirt bike was when I was the age ten and then I never rode another one until I was fifteen years old. This is relevant because to learn how to ride a dirtbike takes time and help from others. My father had been riding dirt bikes and quads since he was a child, so when I needed help I looked up to him. I was clueless on how to operate a dirt bike until I asked my dad for help. Now I can ride a motorized bike with no problem!

Since the Competition Bike Company projected overly optimistic sales, there are several areas in the budget that will be affected. The areas affected are Sales Commission, Transportation Out, Advertising, Research and Development, Raw Materials, and Labor.

We decided to decrease the price of mountain bike production from $134 per bike to $108. The difference of $26 for 11,000 units results in a saving of almost $300,000. In the meanwhile, we also decided to dump our finish goods inventory, incurring a loss of $175,000. We decided to increase our capacity from 20,000 to 27,500 and efficiency from 1,000,000 to 2,000,000. We want to avoid increasing capacity significantly in order to avoid low efficiency. At the same time we want to keep our wastage at a minimum. We reduced our retail margin for the bike and sports store to 20% while reducing the discount stores to 27%. These new retail margins

I think it is obvious in the previous years that the amount the company spends on advertising has a direct effect on the number of sales. According to the projected number of units that are expected to be sold, the company is expecting an increase from 3,400 in year 8 to 3510 in year 9. This is a considerable increase because of the fact that in year 7, there were 4,000 units sold, and in year 8 we saw this drop to 3,400.

Going into 2004, Bob Moyer planned to produce 10,000 bicycles at Mile High Cycles. Construction of his bicycles includes the utilization of three departments, frames, wheel assembly, and final assembly. During this year, Mile High Cycles ended up actually producing 10,800 bicycles to meet higher than expected demand. Bob is curious as to whether or not he was successful in maintaining costs to meet these higher levels of demand.

Revenue net sales standard output 5,247,450 – actual output 5,083,000 with a variance of -164,450, which is unfavorable. This is the amount of sales generated by Competition Bikes. The performance is poorer than budgeted performance. This should be a concern for the company as sales and other cost-driver activities were not the same as originally forecasted or revenue or variable costs per of activity and fixed costs per period were not as expected. This should raise areas for concerns.

Mike Hervey, the advertising consultant to BatesManor Furniture Inc., proposed the manufacturer increase their advertising expenditures by $225,000 for 2008. This would boost new product exposure, brand awareness, and enhance the quality image of the manufacturer. However, the $225,000 increase in promotions is slightly out of line with the manufacturer’s policy of budgeting 5 percent of expected sales for total promotion expenditures. Even though Mr. Bates estimates higher material costs, pricing pressures, and recent wage increases in addition to launching several new furniture styles, can he find a way to juggle funds to allocate the advertising plan while staying within the company’s budgeting

I have come to love bicycles in the course of the past year. I am especially fond of mountain bikes, including my own. Riding it opens up a whole new world of opportunities and challenges for me. I am still fairly fresh to the whole mountain biking scene, so I push myself to become better with more experience. Riding is an outlet; it is something I can channel pent up energy through. I love the sport because it is a full body, soul, and mind experience that affects all five of the senses.

The company’s creams inventory remains constant because it does not follow a trend in innovation and changes so often as the other products. The surplus in inventory is a big disadvantage since; last year’s products may not be in style this year in addition to the cost of storage. For all these reasons their cash flow is less in comparison with previous years causing that Luxor Cosmetics keeps increasing their bank loans, creating more debt, making it harder to pay out as 2011. In this particular situation the company could have either decrease its budgeted sales (productions) or increase its actual sales by improving more effective marketing strategy and research and development of its products in the markets. This way their inventory would decrease and their cash flow would increase. (Hopkins, 2009)

The website of Harley Davidson gave us a new concept of Motorcycles! The extension of this website is exceptional. The virtual Customer Service in this website is notorious and extremely helpful. From other motorcycles websites this is one of the most professionals ones where the customer can get a flavor of the company from products up to their businesses profits and others...Harley Davidson publishes material related to all aspects of their motorcycles and provides to their own and the general public good information, expanding their products and other services with local information for countries around the world. Their information and technology, including digital libraries, metadata, authorization and