Mikesbikespresentationfinal 1224174999577598 9

Executive Board Mission Statement CSR Products Competitors SWOT Financials Actions Future
Mgmt 492 Professor Shanthi Gopalakrishnan Mikes Bikes Final Presentation
Twisters bikes are built for riders, by riders, and we have been doing Executive Board it better than anyone since 2004. We understand the need for new Mission Statement technology and how to best design our bikes to our customers satisfaction because we know the customer is the most important part CSR of our business. Our new Quencher bike was built ready to take any Products degree of abuse you can generate on a daily use, but it is also built tough so that it will last a lifetime. At Twister we take building bikes Competitors seriously with our dedication to you, the customer, but also to your SWOT communities, the environment and our stakeholders. We are a company of great ethics and standards in which we feel the Financials customers comes first. Quality and customers service are our #1 Actions policy. From leisure bikes to mountain bikes, to jump and trail bikes and more, every Twister bike is tough, fast and fun to ride. Come see Future what more than six years of building the best bikes can do to your ride. Thank you for being a proud and loyal customer of Twister.
"Twisters mission is to serve low-to-middle income families the opportunity to own affordable bicycles. We hope to have our growth limited by only our imaginations and to have the ability to develop a technically competitive product that suits the customers design needs. We seek to provide low cost items in high quantities to rapidly expanding and growing low-to-middle income segments. Twister seeks to provide our product on-time, on-quality, and on-cost. To meet our customer's needs we strive to continue to keep our production costs down thus enabling us to return those savings to them. We hope to meet our employee's needs by creating a small community of employees in which to conduct business where hopefully we can make an environment of admiration, trust, and dignity which employees will feel embraced by. We will do our best to continue to train employees and sell a high enough volume of products to help keep as many jobs available as possible. Twister hopes that we can create strong relations with our distribution and supplier partners. This can ultimately aid us in getting our products into more stores. By creating better relations, we also hope to reduce operating costs, allowing us to then return the cost-savings back to our consumers. In addition, we hope to be able to aid the community by supporting others businesses through supplier relations and being sure to operate in a manner that continues to support the citizens and environment in which we work."
Social Responsibility
Employee Volunteerism
Our employees volunteer in many different national and local groups.
Partners and Partnerships

United Way, Americas Second Harvest, and HOSTS Learning Help One Student to Succeed.
Cash and Product Donations

In 2010, we contributed more than $1 million in cash and $5 million in product to various charitable organizations around the world.
Environment
Proper maintenance of plant and equipment. Safety Plan Protecting global and local ecosystems.
Emissions, Kyoto Protocol
CORPORATE
Executive Board
Mission Statement CSR Products Competitors SWOT Financials Actions Future
We are firmly committed to the fair and equitable treatment of all our employees and job applicants. Customers and consumers expect more from Twister and it is every employees job to make sure Twister meets their expectations. Investors count on Twister to deliver on its commitments, provide accurate information about its affiliates and to make responsible business decisions based on reliable records. Twister believes in doing business with suppliers, contractors, joint venture partners, agents, sales representatives, distributors and consultants who embrace and demonstrate high standards of ethical behavior. We actively seek opportunities to contribute to the communities in which we do business, and to improve the environment that sustains us all.
CORPORATE
Employee safety is a value at Twister. We are Executive Board committed to providing a safe and healthy work environment and preventing accidents. Mission Statement Employees are accountable for observing the safety CSR and health rules and practices that apply to their jobs. They are expected to take precautions necessary to Products protect themselves and their co-workers, including Competitors immediately reporting accidents, injuries and unsafe practices or conditions. SWOT Employees also are expected to report to work free Financials from the influence of any substances that could prevent Actions or impair them from performing their jobs safely
Future
Adventure
Adv3Proj
Kids
Lil Tykes
Leisure
Quencher
Commuter
Gatorade
Profit per bike

2003: $1134 2004: $1501 2005: $1454 2006: $1545 2007: $1560 2008: $907
Technical Specs
Specialized A1 Premium Aluminum comfort frame with smooth-welded finish Specialized ultra-smooth coil suspension seat post Specialized fully adjustable Ahead-style stem and anatomic 80mm-rise alloy handlebars Shimano Deore 24 speed drive train with Shimano Alivio Rapidfire shifting Specialized Hemisphere tires with Armadillo puncture prevention technology Specialized A1 Premium Aluminum comfort frame with smooth-welded finish Specialized ultra-smooth coil suspension seat post Colors: Black, Blue, Green, Yellow
Market Share
Sp d Fir ni l Fir 6 i r xr
Profit per bike

2006: -$291 2007: -$234 2008: $250 2009: $290
Technical Specs
Specialized A1 Premium Aluminum comfort frame with smooth-welded finish Padded covering for frame Specialized ultra-smooth coil suspension seat post 16 White or Black tire Specialized Premium Aluminum comfort frame with smooth-welded finish Specialized ultra-smooth coil suspension seat post Colors: Pink, Blue, Green, Red, White, Yellow
Market Share
Sp d Fir ni l Fir 6 i r xr
Profit per bike

2007: $294 2008: $97
Technical specs
21-speed road bike features a lightweight aluminum 22.5-inch frame Alloy calipers and ally brake levers High-profile alloy Vitesse racing rims Shimano derailleur and Shimano Revo shifts makes it easy to change gears quickly and smoothly High-performance 700c tires are up to the challenge of rigorous street racing Color: Can be customizable with any color
Market Share
Sp d Fir ni l Fir 6 i r xr Sp d ' Bik
Profit per bike

2010: $240
Description/picture Technical specs

21-speed road bike features a lightweight aluminum 22.5-inch frame Alloy calipers and ally brake levers High-profile alloy Vitesse racing rims Shimano derailleur and Shimano Revo shifts makes it easy to change gears quickly and smoothly High-performance 700c tires are up to the challenge of rigorous street racing Color: Can be customizable with any color
Market Share
Sp d Fir ni l Fir B i r
Bike Type
Estimated Market Size 320,000 28,000 150,000 160,000
Rec. Our prime Prime cost Cost $62 $431 $56 $60 $315 $55.90 N/A $44.49 $47.62 $275.00
Market Our last Product product specs Specs (S/T) 79/11 23/90 28/11 53/11 61/65 72/14 N/A 27/11 52/11 50/60
Kids Racer Commuters Leisure
Adventurers 170,000
Market share .5% Share Price $0.85 Sales Revenue Profit After Tax 14,999 Competes in: Commuter

F m
Ex
F m6
Sp

$1,594,692
Market share .7% Share Price $1.44 Sales Revenue $2,382,435 Profit After Tax ($2,021,283) Competes in: Kids Leisure Adventure
Market share 9.1% Share Price $4.09 Sales Revenue $29,193,631 Profit After Tax $4,573,198 Competes in: Kids Racers Leisure Adventure
Market share
Market share 29.6% Share Price $54.98 Sales Revenue $94,600,862 Profit After Tax $11,635,633 Competes in: Kids Commuters Leisure Adventure
12.3% Share Price $18.42 Sales Revenue $48,324,587 Profit After Tax $5,679,129 Competes in: Kids Racers Commuters Leisure Adventure
Market share
47.9% Share Price $151.11 Sales Revenue $150,409,566 Profit After Tax $43,462,313 Competes in: Kids Racers Commuters Leisure Adventure

Product development
Weve hit the target market 100% on 4 out of the 5 bikes weve developed and hope to continue to hit this mark on our future product developments.
In keeping good relations with our suppliers weve managed to get our raw materials stocking to below 4% of our manufacturing capacity (down from 8% two years ago).
Through continuing to increase our relations with our suppliers, we seek to make this percentage even more minimal in the future.
Twister has successfully been working on creating a strong brand image. This has enabled us to rebound and be back on our way to profitability in the last two years. Breakdowns have dropped to .4% from 9.7% and 13.5% two and three years earlier.
This is from an increase in spending on preventative maintenance.
We tried to expand too quickly in the beginning We were overspending on advertising in the beginning. This resulted in our team not receiving a proper return on our investment for each year which led us into bankruptcy. Were in far fewer markets then any of our competitors Our awareness and PR are not meeting the standards of the bike market we are competing in. We have a significantly large (67.8%) idle time Low capital
Expand our operations abroad Since we currently only offer one bicycle, theres the opportunity available to Twister to venture into other bicycle categories such as racer bicycle. Theres the opportunity to move beyond bicycles and offer skateboards, scooters, and rollerblades. New outlets of advertising available can enable us to reach a larger target market and with the internet we can reach a larger audience at lower costs.
We have an extremely small market share compared to most of our other competitors and it may be hard to find a way to compete with companies such as Cynical Cycles. Theres competitors in every market already, so seeking expansion and attempting to gain a foot in a new market is proving hard.
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Adv3 and Quencher were approx. Executive Board capturing the market: Huge Price Adv3 Mission Statement - $2,025; Quencher - $375 CSR Lil Tykes was re-designed - $350 Products With failure of selling enough products, Competitors net income drastically fell : SWOT
NI = ($3,704,021)
Enough money was spent on Adv3 and Quencher, thus branding a product which was drifting away from demand
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Total Assets
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Total ia ilities
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Balance heet pecs
$10 000 000

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$8 000 000
$7 505 849
$6 000 000
$5 482 550
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Income Statement Specs
Beginning Cash Flow = $1,990,171 Net Cash Change = ($5,439,834) Ending Cash Balance = ($3,449,663) Financing Activities: Cash disbursement
Interest paid on Debt - $112,000 Interest on Overdraft - $76,087
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Adv3 and Quencher were far away from Mission Statement capturing the market: Prices were dropped CSR Products Adv3 - $1,450; Quencher - $375 Competitors Advertising expenses were dropped SWOT Financials Not much emphasis were made on Actions advertisement and branding Future Price was the key issue (raised) - $360
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Decisions made were not effective NI went further down from ($3,704,021) to ($11,317,504) Sales revenue drastically fell from $7,505,849 to only $2,882,075 Cost of good sold decreased, which showed some hope in the process ($1,957,344) Similar product line and no reduction of cost in Quencher overcame the advantages of the kids bike
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Similar product line with new tech specs with Lil Tykes and no reduction in branding of other two increased operating cash outflow
from $5,301,747 to $10,698,063
No investment was made to boost the cash inflows Interest on long term debt increased to $551,302; Interest on Overdraft = $3,845,711 from $76,087 Ending Cash Flow = ($18,544,758) from ($3,449,663)
Cash Flow Injection of $22mi Strategies Chosen:

Lil Tykes: Price reduced - $290 Adv3 and Quencher were abandoned
Single Product Advertisement/PR Expenditure was reduced No new Bikes were produced Inventory was cleared out
Plant space was reduced Employee strength was reduced accordingly Idle time had to be controlled Debt was repaid which affected the reduction in cash outflows in interest payments Companys leveraging pressure was relieved
Executive Board Mission Statement CSR Products Competitors

Value
et ncome
Total Assets
Total E uit
Total ia ilities
Balance Sheet Specs
Liabilities were taken to $0 which increased NI from ($11,317,504) to ($4,255,053) Sales Revenue was not a big figure as their was single product sold, and that too at a reduced price $182,247 Cost of good sold went further down - $115,470 from $1,957,344
$500 000

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Single Product in demand: Drastically reduced operating out cash flows Injection of money gave cash inflow of investment The debt was repaid Ending Cash Balance turned positive
$1,750,628 from ($18,544,758)
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Financial Injection and Lil Tykes helped Twister come out of low figures of NI Now, Twister abandoned the kids bike and went to a competitive commuter bike Using the money made, Gatorade was launched
Price - $296 PR Expenditure - $0; Advertising Expenditure - $15,000 (further reduced)
Plant size was further reduced to deduct the idle time Margins made by the distributors were further controlled Emphasis were made on sport and department stores where sales are huge Gatorade had the app. Tech specs of market
$6 000 000

$5 581 798
$5 581 798
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Mission Statement CSR
$4 000 000
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$2 000 000
$1 000 000
$14 999
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Operatin Cas lo s

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Cash Flows
Financin Cas Flo s
Commuter bikes price didnt allow to make much revenue - $1,594,692 However, operating cash flows and investment cash are positive NI is looking positive and correct strategies will allow it to prosper further Competitor watch is necessary, especially with the prices
etur On Assets
Executive Board
02 Mission Statement 0 CSR -0 2 Products -0 4 -0 Competitors -0 8 SWOT -1 Financials -1 2 Actions -1 4 Future -1 -1 8 2007
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-0 97 -1 31 -1 72 2008 2009 2010
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0.465 0.294 0.0027
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Sha e Holde Value
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3 Yea (2004 - 2007)
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Process Reduce idle time Product Improve quality of product and manufacturing to cut down on warranties and breakdowns. Profit Focus on creating higher products with better service Walk away from unprofitable businesses Partners Increase stock price
Significantly cut both work force and plant size to reduce operating costs and attempt to fix idle time (turnaround strategy) Liquidated overstock of kids bikes. Over the years weve exited all bike categories and recently entered the commuter market (retrenchment) Began decreasing overspending on advertising Increase number of bikes inspected Paid off all of our debt (increase stock price)
In being back on track to profitability, Twisters future growth strategies are clear and strong. As an organization we seek to start building our brand back up by relaunching bike lines we had to liquidate, in addition to spreading out into the racer bike segment. expand our warehouse size, first back to the operating size we possessed years earlier, and then possibly seeking to go even larger to support the new ventures we are hoping to get into. Re-hire a significant portion of our workers
For the short term, in order to pay off of our injection loan, we strive to focus on steadily gaining in the market over the next few years and getting back on our feet by attracting customers through brand loyalty and quality bikes. By growing in new, untapped markets we also hope to be able to increase our profits exponentially over the next couple of years. As a result of our past issues with production and debt we lost a lot of relationships with our distributors. By working out our relations and making our products available in more stores we hope to increase our profitability as well as get our name out there.
In addition to bicycles, we hope to be able to offer a wider variety of accessories and products. These items would include:
Company shirts, bicycle gloves, and riding apparel. Bicycle helmets Indoor bicycles intended for use by consumers to either get indoor exercise or to cross-train in the offseason. Our own line of bike care products such as lubes cleaners, tire pumps and bike covers. Bike accessories such as bicycle locks for added security and reflector lights for consumer safety.
Launch an interactive website for consumers to use. provide the consumer with information on Twisters product information create the ultimate cycle experience. Our online website will consist of an area where consumers can read about and keep up on the latest information in the bicycle industry from new companies to sporting events taking place. Create a social network for bicycle enthusiasts where they can have an open forum to chat with other cycling fans.
Over the next several years, Twister hopes to implement a new ERP system. Implementing an ERP system will help our company to unify our business processes, lower costs so we can provide a better return to our investors, and improve relations and delivery time with our suppliers. Twister is looking to expand into foreign markets. At first we will venture in China and India as these areas have large populations and will offer us a significant growth opportunity. If our initial venture into overseas markets proves to be profitable, we may seek to expand our operations abroad in order to enable us to keep costs low and profits higher.
Expand beyond bicycles into other areas of transportation.

Scooters
rising in popularity over the last few decades and wed feel it would align well with our companys strategy.
Rollerblades Skateboards.
After acquiring a bit more capital, Twister seeks to offer the options of creating customizable bikes to our consumers. Seek to partner with companies in the creation of themed bicycles. For example:
Partner with Disney to create a childrens bicycle Partner with Dave Mirra to create a racer bike
Major Initiatives
Cost Reduction
Value engineering Globalization In our products and our process
Rebuild and Recharge workers
Financial Initiatives
Improve profitability Drive improved liquidity Enhance financial controls Raise more capital
Improve Liquidity
Working Capital reduction Top line growth Asset sales Other cash sources
Get Control over core flow

Offer new incentives Engage the customer Build relationships
Going Forward
Deliver cost savings Efficiency gains Provide a safer work environment
Why now?
The environment is right Management team is coming together Changes in technology are making cost reduction opportunities huge

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Executive Board Mission Statement CSR Products Competitors SWOT Financials Actions Future

Mgmt 492 Professor Shanthi Gopalakrishnan Mikes Bikes Final Presentation

Partners and Partnerships

Cash and Product Donations

Mission Statement CSR Products Competitors SWOT Financials Actions Future

Profit per bike

Profit per bike

2006: -$291 2007: -$234 2008: $250 2009: $290

Profit per bike

2007: $294 2008: $97

Sp d Fir ni l Fir 6 i r xr Sp d ' Bik

Profit per bike

Description/picture Technical specs

Estimated Market Size 320,000 28,000 150,000 160,000

Kids Racer Commuters Leisure

Executive Board Mission Statement CSR Products

Financials Actions Future

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Executive Board Mission Statement

Competitors SWOT Financials Actions Future

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Mission Statement CSR

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Executive Board Mission Statement CSR

SWOT Financials Actions Future

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Executive Board Mission Statement CSR Products Competitors

SWOT Financials Actions Future

Balance Sheet Specs

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$66 777 ross Margin et ncome

SWOT Financials Actions Future

Mission Statement CSR Products Competitors

SWOT Financials Actions Future

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