Management Information Systems Dirt Bikes U.S.A. March 6, 2008

Transcription

1 Management Information Systems Dirt Bikes U.S.A. March 6, 2008 Marcio Carvalho Ashley Andrade Rashid Salameh 1

2 Table of Contents Part 1: Abstract. 4 Part 2: Management Overview of the Company Objective..4 Deliverables.4 Analysis 8 Part 3: Financial Performance Objective..9 Deliverables.9 Analysis..10 Part 4: Performing a Competitive Analysis Objective 10 Competitive Analysis Analysis..12 Part 5: Ownership of Desktop Software Assets Objective 12 Deliverables...13 Analysis..14 Part 6: Customer Database Objective 14 Deliverables...14 Analysis..19 Part 7: Summary.20 2

3 Table of Figures Part 2: Management Overview of the Company 1-1: Store Performance : Region Performance : Best Selling Products 5 1-4: Strongest Sales Regions : Strongest Stores 6 1-6: Strongest Selling Period (Store) : Strongest Selling Period (Region) 7 1-8: Strongest Selling Period (Product)...8 Part 3: Financial Performance 2-1: Model Sales : Annual Sales.9 Part 4: Performing a Competitive Analysis Part 5: Ownership of Desktop Software Assets 4-1: Software Price & Functionality : Software Costs Summary...13 Part 6: Customer Database 5-1: Supplier : Most Expensive Bicycles : Least Expensive Bicycles : Product Information : Products & Suppliers : Bicycles Low In Stock : Customer Information : Motorcycle Model & Distributer : Motorcycle Purchases : Customer Purchases : Customers Attending Races.19 3

4 Abstract Within this report, you will see information and data obtained from doing various tasks to further benefit Dirt Bikes U.S.A. Our first task was to prepare a management overview of the company and create a management analysis and report of that business. We were then required to analyze financial performance and create graphs to present the information gathered. We then had to prepare a report that analyzed Dirt Bikes using the value chain and competitive forces models. The following objective was to analyze the total cost of ownership of desktop software assets and then with the data collected, matrixes had to be created to exemplify its findings. Finally, we were asked to redesign the customer database to allow the company to market more aggressively to its customers and send these customers notices of special racing events and of sales on parts. Management Overview of the Company Objective: Dirt Bike s management wants to prepare a management analysis of the company to help assess the firm s current situation and future plans. They then request that a report is constructed to show the company s history, organization chart, products and services, and sales and marketing. Deliverables: Store No. Weekly Sales 6 $267, $170, $158, $91, $90, $90, $75, $54, Store Performance Figure 1-1: The table above exemplifies the best performing stores by total sales. 4

5 Sales Region Weekly Sales East $529, South $234, North $233, Region Performance Figure 1-2: The following shows the best performing regions by total sales. Item No. Item Description Sum of Units Sold 8500 Desktop CPU Keyboard PC Mouse Monitor 609 Best Selling Products Figure 1-3: The information gathered above shows the best selling products by units sold. Item No Item Description Sum of Units Sold Sales Region Monitor 328 East Monitor 164 South Monitor 117 North Keyboard 385 East Keyboard 309 North Keyboard 223 South 6050 PC Mouse 297 East 6050 PC Mouse 222 North 6050 PC Mouse 151 South 8500 Desktop CPU 522 East 8500 Desktop CPU 234 North 8500 Desktop CPU 225 South Strongest Sales Regions Figure 1-4: The datasheet shows the strongest sales regions by product quantity. 5

6 Item No Item Description Sum of Units Sold Store No Monitor Monitor Monitor Monitor Monitor Monitor Monitor Monitor Keyboard Keyboard Keyboard Keyboard Keyboard Keyboard Keyboard Keyboard PC Mouse PC Mouse PC Mouse PC Mouse PC Mouse PC Mouse PC Mouse PC Mouse Desktop CPU Desktop CPU Desktop CPU Desktop CPU Desktop CPU Desktop CPU Desktop CPU Desktop CPU 56 2 Strongest Stores Figure 1-5: The following shows the strongest stores by product quality. 6

7 Store No Week Ending Sum of Units Sold 1 29-Dec Oct Nov Dec Oct Nov Oct Nov Dec Dec Oct Nov Oct Dec Nov Nov Dec Oct Oct Dec Nov Dec Oct Nov Strongest Selling Period (Store) Figure 1-6: Above shows the strongest selling period by store. Sales Region Week Ending Sum of Units Sold East 29-Dec East 24-Nov East 27-Oct North 29-Dec North 27-Oct North 24-Nov South 27-Oct South 29-Dec South 24-Nov Strongest Selling Period (Region) Figure 1-7: The data gathered above shows the strongest selling period by sales regions. 7

8 Item No Item Description Week Ending Sum of Units Sold Monitor 24-Nov Monitor 27-Oct Monitor 29-Dec Keyboard 29-Dec Keyboard 24-Nov Keyboard 27-Oct PC Mouse 29-Dec PC Mouse 27-Oct PC Mouse 24-Nov Desktop CPU 29-Dec Desktop CPU 24-Nov Desktop CPU 27-Oct Strongest Selling Period (Product) Figure 1-8: The table shown above lists the strongest selling period by products. Analysis: As can be seen from the gathered information from above, Dirt Bike s management will benefit from preparing a management analysis of the company, thus helping it assess the firm s current situation and future plans. With the aid of reports and queries created, the company will be able to prepare a proper management overview of their company allowing them to expand and become more profitable. When asked what the company s goals and culture are, they are able to say that their constant goal of the company is to maintain the high quality standards of all of their models. Another goal could be to have the company gain market share of the Dirt Bike sales. Dirt Bike s culture appears to have a very democratic, employee-friendly culture, emphasizing ongoing learning, quality, attention to detail, and employee contributions. Dirt Bikes specialize in off-road and motocross motorcycles that emphasize racing performance, styling, and the best quality parts from all over the world. The four models sold within the company are: the Enduro 250, the Enduro 550, the Moto 300 and the Moto 450. The two Enduros are endurance racers, where as the Motos are for motocross racing. All four are very modern, with such technology as kick and electric starters, steering stabilizers, and liquid cooling. The company also provides services for the dirt bikes that are under warranty and sells parts for them. Parts and services account for about 15 percent of the company s revenue with the other 85 percent coming directly from dirt bike sales. The business contains about 118 employees, and is currently composed of 3 full-time product designers and 3 engineers. Most of the employees are in production. Many of its departments have less than 10 people. Production is probably the only department that warrants more than 1 manager. Based on the analysis of the company the most appropriate means of information technology that can improve the status of the company is to establish a digital market which is an information system that links together buyers and sellers. 8

9 Financial Performance Objective: Dirt Bikes needs to have its data on the company s financial performance analyzed. They then require that graphs are constructed exemplifying the firm s sales history from 2001 to 2005 and its domestic versus international sales from 2001 to 2005 using the spreadsheet software provided. With the information gathered, the next task is to then calculate the gross and net margins in Dirt Bike s income statements from 2003 to Deliverables: Model Enduro Enduro Moto Moto TOTAL Model Sales Figure 2-1: Above illustrates the sales of each model with the amount in thousands of dollars. Annual Sales Units sold Year Enduro 250 Enduro 550 Moto 300 Moto 450 Annual Sales Figure 2-2: The following demonstrates the annual sales of the units sold for each year. 9

10 Analysis: The figures collected show the total sales and a five year sales trends. It also shows how much international and domestic sales that make up the total. When asked when the sales dropped, it dipped slightly during 2004 but overall, sales have been increasing. The portion of overall sales represented by international sales has not been impacted by much, but there are indications that there may be opportunities for Dirt Bikes to grow its international sales. The income statement data shows a continuing rise in operating expenses and the cost of goods sold and combined with declines in gross and net margins. Dirt Bikes needs to bring down its costs and by using new information systems it might help accomplish that goal. It can be seen that Dirt Bikes has a sufficient amount of assets, therefore it can afford to invest in new product development and new information systems that can further increase the revenues of the business. Performing a Competitive Analysis Objective: Dirt Bikes s management would like to be sure it is pursuing the right competitive strategy. Therefore, the task is to perform a competitive analysis of the company using the Web to find the information that is needed. Then, prepare a report that analyzes Dirt Bikes using the value chain and competitive forces models. Deliverables: Activities that create the most value: The activities that create the most value for Dirt Bikes USA is merely the manufacturing and selling of dirt bikes. Although, many of the parts are from the United States, they also acquire pieces from other places in the world, such as Austria. Nonetheless, Dirt Bikes is the one whom constructs their bikes frames, which have become a trademark for the company. In addition, the company also offers mechanical services because they believe in backing their products; for instance, they sell what the mechanics can almost certainly repair. In the end, 15% of the total revenue is an achievement of the parts and services. This percentage means that the rest of the profit comes from the bikes, which is mostly sold in the United States of America. The bikes include the Enduro 250 selling for $3250, the Enduro 550 retailing for $7600, the Moto 300 selling for $4295 and the Moto 450 retailing for $8995. Basically, Dirt Bikes s bikes are what make the business possible. 10

11 Value provided to customers: Dirt Bikes has invested in various products in order to fasten the relationship between them and their customers. For instance, many of their employees are dirt bike admirers, who have the same love for this product as many of their customers. A number of their workers are racers, who are endorsed by Dirt Bikes USA in dirt bike racing competitions. Therefore, in order to better please customers, they have established a Dirt Bike s USA Owners Group so that patrons can share their experience. Their brand is also distributed in various ads as well as dirt bike and motorcycle magazines; thus, product enthusiasts will always be kept up to date with advanced and latest merchandise. Major competitors: Dirt Bikes must pay close attention to its competition. In today s society, businesses are constantly thriving to become the best by advancing their products and creating a product or service that will attract the attention of individuals. Therefore, Dirt Bikes must not only pay attention to their own company, but they must also look at their rivals. Some major bike manufacturers and sellers include: the ProSports USA Motorcross sponsors Kawasaki Motorcycles and Yamaha Motor Corporation. Comparison in products: Kawasaki is constantly coming up with new products. Their goods, in addition, are very fairly priced given that their bikes tend to range from $2,999 to $7,999; thus, this company is more affordable than many other bike manufacturers. Also, the Kawasaki Motorcycles also has a Rider s Club (ROK) that offers a number of benefits, such as discounts, ROK clothing, a free ROK magazine membership, and many other benefits. Yamaha bikes tend to lean on the pricier side when compared with Dirt Bikes s and Kawasaki s brands. Nonetheless, the Yamaha s name is well known as well as trustworthy; for instance, they have an extended service program that spares their customers expensive repair bills. In addition, Yamaha has a number of racing teams: the Yamaha Factory Team, the L & M Racing Team, the Joe Gibbs Racing Team, the Yamaha of Troy Racing Team, and many more. Yamaha also sells many more merchandise rather than Dirt Bikes, such as apparel, gifts, parts, services, snowmobiles, accessories, motorcycles, watercrafts, as well as much more. Basically, individuals who are outdoorsy as well as sporty are more inclined to turn to the Yamaha brand. 11

12 Competitive forces: Today, there are a number of competitive forces that have an impact on Dirt Bikes, like the customers, current competitors, the suppliers, and new entrants. Nonetheless, Dirt Bikes must not let these forces divert them from becoming the best that they can be. Dirt Bikes USA has a number of benefits, but what they should do is follow the footsteps of Harley Davidson. In simple terms, they should amplify their products and services as well as form additional customer groups. For example, the company should offer motocross training classes, more Dirt Bikes USA apparel, be advertised more often, and have additional protection plans. Also, they should try to offer more accessories as the Harley Davidson Franchise. In simple terms, for Dirt Bikes to become better and more successful, they should capitalize its name and influence it into motocross racing. Analysis: If Dirt Bikes s management would like to be sure that it is pursuing the right competitive strategy, they need to perform more competitive analysis s similar to the one shown above. A competitive analysis requires the use of the Internet to find information that will analyze Dirt Bikes using the value chain and competitive models. These models exemplify the company s activities that provide the most value, its value to their customers, their major competitors, as well as the competitive forces that can affect their industry. By performing all of these tasks, Dirt Bikes will be able to maintain success without having to worry about their competitors ruining their business thus making them run out of business. Ownership of Desktop Software Assets Objective: Dirt Bikes would like to replace the desktop office productivity software used by its corporate administrative staff. These employees need a suite that has word processing, spreadsheet, database, electronic presentation, and software tools. Occasionally, they would like to use these software tools to publish Web pages or to access data from the Internet. The task at hand is to use the Web to research and compare the pricing and capabilities of either Microsoft Office 2003 or Office XP versus Sun StarOffice. 12

13 Deliverables: Microsoft Office 2003 Microsoft Office XP Sun StarOffice Word Processing Spreadsheet Database Electronic Presentation Software - Price Per Software $ $ $ Total Price for 8 Copies $2, $2, $1, Software Price & Functionality Figure 4-1: The chart above compares the prices of each software suite as well as their functionality. One-Time Installation Fee: initial: $25 per user cost for 8 users = $200 One-Time Training Fee: initial: $100 per user cost for 8 users = $800 Annual Technical Support Fee (30% of initial purchase costs): Microsoft Office 2003 Microsoft Office XP Sun StarOffice $ $ $ Annual Downtime Fee (15% of the purchase costs) Microsoft Office 2003 Microsoft Office XP Sun StarOffice $ $ $ Software Costs Summary Figure 4-2: Above exemplifies the costs summary for additional cost components for each software system. 13

14 Analysis: Dirt Bikes would have to do some research to determine which desktop office productivity software would be best to improve efficiency and organization within the company. Based on the information gathered above, Dirt Bikes would make the wise decision of purchasing Microsoft Office 2003 due to the fact that it performs all the functions that is needed by the employees. Microsoft Office 2003 performs the same tasks as Microsoft Office XP but is of lower price. Sun StarOffice is found to be the least amount of the three and would be considered to be the best choice, but this software does not contain software that would be needed. Along with the initial costs for such things as installation fees and training fees, in the end Microsoft Office 2003 proves to be a better value. Therefore, Microsoft Office 2003 would be the best decision for Dirt Bikes to make in order to further benefit and assist the business. Customer Database Objective: Dirt Bikes sells primarily through its distributors. It maintains a small customer database and the data is then collected by its distributors when they make a sale and are then forwarded to Dirt Bikes. Dirt Bikes would like to be able to market more aggressively to its customers and the Marketing Department would like to be able to send customers notices of special racing events, sales on parts, and of their interests and tastes. The task at hand is to redesign Dirt Bikes s customer database so that it can store and provide the information needed for marketing. Afterwards, develop several reports that would be of great interest to Dirt Bikes s marketing and sales department. Deliverables:. ID No Supplier No. Company Name Street Address City State ZIP Code 1 1 Bicyclist's Choice 1459 Washington Avenue Sioux Falls SD Bike-One 2000 Oceanside Lane San Diego CA Run-Up Bikes 1155 Fifth Avenue Long Branch NJ Simpson's Bike Supply 107 Piedmont Tulsa OK Supplier Figure 5-1: The supplier table above shows each supplier along with their ID number and location 14

15 Product No. Product Name Selling Price Quantity on Hand Profit Margin 20 Twist & Shout $ % 18 Runroad 4000 $ % 6 Eagle 1 $ % 5 Eagle 2 $ % 19 Runroad 5000 $ % Most Expensive Bicycles Figure 5-2: The five most expensive bicycles can be seen from the table above. Product Purchase Name Cost Selling Price Markup Percent Red Rider $15.00 $ % Supreme 350 $50.00 $ % Runkidder 100 $50.95 $ % Coolest 100 $69.99 $ % Blue Moon $75.29 $ % Least Expensive Bicycles Figure 5-3: The five least expensive bicycles can be seen from the table above. ID Product Product Product Purchase Selling Supplier Quantity on Reorder No. Category Name Cost Price No. Hand Level 1 1 Road Classic 109 $ $ Road Elegant 210 $ $ Road Runroad 1000 $ $ Mtn. Eagle 3 $ $ Mtn. Eagle 2 $ $ Mtn. Eagle 1 $ $ Hybrid Runblend 2000 $ $ Hybrid Eagle 7 $ $ Hybrid Tea for Two $ $ Leisure Runcool 3000 $85.95 $ Leisure Starlight $ $ Leisure Supreme 350 $50.00 $ Leisure Blue Moon $75.29 $ Children Runkidder 100 $50.95 $ Children Red Rider $15.00 $

16 16 16 Children Children Road Road Road Coolest 100 Green Rider Runroad 4000 Runroad 5000 Twist & Shout $69.99 $ $95.47 $ $ $ $ $ $ $ Product Information Figure 5-4: The table above lists each product as well as additional details about that product. Company Name Product Name Product No. Quantity on Hand Reorder Level Bicyclist's Choice Classic Bicyclist's Choice Coolest Bicyclist's Choice Elegant Bicyclist's Choice Supreme Bike-One Eagle Bike-One Eagle Bike-One Eagle Bike-One Eagle Run-Up Bikes Runblend Run-Up Bikes Runcool Run-Up Bikes Runkidder Run-Up Bikes Runroad Run-Up Bikes Runroad Run-Up Bikes Runroad Simpson's Bike Supply Blue Moon Simpson's Bike Supply Green Rider Simpson's Bike Supply Red Rider Simpson's Bike Supply Starlight Simpson's Bike Supply Tea for Two Simpson's Bike Supply Twist & Shout Products & Suppliers Figure 5-5: The chart above illustrates the products as well as the suppliers. 16

17 Product Name Product No. Supplier No. Company Name Eagle Bike-One Runblend 2000 Starlight 11 4 Supreme 350 Green Rider Twist & Shout 7 3 Run-Up Bikes Simpson's Bike Supply Bicyclist's Choice Simpson's Bike Supply Simpson's Bike Supply Street Address 2000 Oceanside Lane 1155 Fifth Avenue City San Diego Long Branch State ZIP Code Quantity on Hand Reorder Level CA NJ Piedmont Tulsa OK Washington Avenue Sioux Falls SD Piedmont Tulsa OK Piedmont Tulsa OK Bicycles Low In Stock Figure 5-6: The following provides the bicycles that are low in stock and in need of reorder. Customer Last First Date of Street City State Zip ID Name Name Birth Sport Racing 1 Mann Dwight 23 Colby Lane Tacoma WA Aug-80 Hunting 2 Porter William 3 Pinehill Rd. Logan UT Nov-71 Skiing 3 Higgins Daniel 38 Ryder Rd. Lincoln NE Dec-67 Fishing - 4 Langan Howard 8 Belle Ave. Flagstaff AZ Jun-66 Hunting 5 Delgado Luis 66 Skyview Las Terrace Cruces NM Jul-61 Football 6 Stratman Philip 722 Donald Dr. Hayward CA Feb-74 Tennis - 7 Yates Gerry 11 Buena Vista Dr. Ventura CA Jun-79 Skiing - 8 Michel Paul 523 Grant St. Norman OK Apr-78 Hunting 9 Podell James 68 Clinton St. Pocatello ID Mar-72 Tennis - 10 Lowe Mark 95 Canyon Dr. Pomona CA Oct-69 Skiing - Customer Information Figure 5-7: The above data contains the customers along with their information. 17

18 Model ID Model Manufacturer Dist. ID Distributor 1 DRZ400 Suzuki 1 Ben's Cycles 2 RM250 Suzuki 2 J & J Cycle 3 Moto 300 Dirt Bikes 3 KB Racing 4 Enduro 250 Dirt Bikes 4 Don's Off Road 5 Enduro 550 Dirt Bikes 5 WX Cycle 6 KDX200 Kawasaki 6 Performance Cycles 7 Moto 450 Dirt Bikes 7 Lightning Cycles 8 XR200R Honda 8 All-Terrain Cycle 9 CR250 Honda 9 Cycle World Motorcycle Model & Distributor Figure 5-8: The chart shown above provides information on the customer s motorcycle by model and distributer. Trans ID Customer ID Model ID Date DistID /11/ /12/ /2/ /27/ /7/ /11/ /12/ /5/ /22/ /21/ /16/ /17/ /18/ /28/ /5/ Motorcycle Purchases Figure 5-9: Above demonstrates the purchases of motorcycles by customers. 18

19 Customer ID Last Name First Name Model Manufacturer Distributor Date 1 Mann Dwight Enduro 250 Dirt Bikes J & J Cycle 2/12/ Mann Dwight Enduro 550 Dirt Bikes J & J Cycle 8/11/ Porter William CR250 Honda WX Cycle 3/27/ Porter William Enduro 250 Dirt Bikes WX Cycle 11/2/ Higgins Daniel Moto 450 Dirt Bikes All-Terrain Cycle 7/11/ Higgins Daniel Moto 300 Dirt Bikes Lightning Cycles 6/7/ Langan Howard Moto 450 Dirt Bikes Cycle World 1/12/ Delgado Luis Moto 300 Dirt Bikes Ben's Cycles 10/5/ Stratman Philip Moto 450 Dirt Bikes Don's Off Road 3/21/ Stratman Philip RM250 Suzuki KB Racing 9/22/ Yates Gerry Enduro 250 Dirt Bikes Lightning Cycles 5/16/ Michel Paul Moto 300 Dirt Bikes WX Cycle 4/17/ Podell James XR200R Honda Lightning Cycles 6/28/ Podell James Enduro 550 Dirt Bikes Performance Cycles 5/18/ Lowe Mark Moto 300 Dirt Bikes KB Racing 12/5/2004 Customer Purchases Figure 5-10: The data gathered shows the information of each customer that has made a purchase. Last Name Delgado Langan Michel Porter First Name Luis Howard Paul William Street State Zip Racing 66 Skyview Terrace 8 Belle Ave. 523 Grant St. 3 Pinehill Rd. Customer ID NM AZ OK UT Phone (505) (928) (405) (435) [email protected] - [email protected] Customers Attending Races Figure 5-11: The table above expresses the customers that attend racing events. Analysis: If Dirt Bikes wishes to be able to market more aggressively to its customers and have the Marketing Department be able to send these customers notices of special racing events and of sales on parts, then they would have to review the above information gathered. By taking all of the proper precautions, Dirt Bikes will be able to obtain a better understanding of its customer s interests and tastes. By building a better relationship with their customers, the business will be able to function better and be able to fulfill the wants and needs of all customers. This will then persuade customers to 19

20 further continue their business with Dirt Bikes thus increasing revenues and making the company more profitable. Summary: In conclusion, Dirt Bikes has been proven to be an exceptional assignment in obtaining a better idea of what it takes to perform research and construct a report that summarizes the findings for management. One of the most common and important lessons learned was that the Internet is a valuable resource that can be used to gather data and information that will aid in making a decision that will have an impact on the business. Making decisions plays a key role in being able to manage and maintain a company or firm, and without doing research and then using critical thinking, that business will surely fail. Thus, it is important to know all the facts before making any decisions because the company depends on it and will either become more successful and expand, or it will fail and eventually go out of business. 20