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This report analyzes the strategic performance of Wheelin’ & Peelin’ in 2011, focusing on objectives, results, and recommendations. It covers sales, profits, shareholder value, vertical and horizontal analysis, and SWOT analysis. The report suggests strategies to dominate the road bike industry, increase quality, raise prices, and enhance shareholder value.
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Wheelin’ & Peelin’ Final Report2011 Sara 201002874 Laura 201002053 Colin 201001682
Firm Strategy • Develop a high awareness • Obtain the majority of total sales for each bike • Basic averaged quality bikes • Own the majority of available shares • Earn and burn to increase gross margin
Analysis of Results • Sales of over: $21,000,000 • Profits of over: $3,200,000 • Shareholder Value: $32.00 • Earnings per share: $3.93 Vertical Analysis • The cost of goods sold increased as a percentage of sales 53.44% in 2017, 45.62% in 2016 and 55.09% in 2015. • The gross margin increased 46.56% in 2017, 54.38% in 2016 and 44.91% in 2015. • Profitability increased on marginally over the years: 14.74% in 2017, 15.52% in 2016 and 7.27% in 2015.
Analysis of Results Horizontal Analysis • Mountain bike sales increased 11.37% in 2017, 16.46% in 2016 and – in 2015. Road bike sales increased by 2.08% in 2017, slightly less than the 2.57% increase in 2016. • Profits have grown considerably within the past 3 years. Increasing in 2017 by 2.43%, 139.13% in 2016 and in 2015 with profits increasing by 200.23%. • Even though the cost of goods sold increase was continuous throughout the past 3 years Wheelin’ & Peelin’ still fall behind it’s two main competitors, Bad As Bikes and Buckle’s Bikes by just over $1 million.
Objectives and Recommendations • Focus on the road bike industry • Increase expenditure on road bikes • Build a higher awareness rating • Increase quality of bikes • Raise prices • Lower COGS • Higher gross margin • Higher shareholder value
Closing • Firm was successful • Decisions • Team • Questions and Answers