Mikes Bikes

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Table of Contents
Overview...............................................................................................................................................2
MikesBikes Business Simulation............................................................................................................2
Common Advice....................................................................................................................................4
To Play Offline....................................................................................................................................4
Perceptual Plan......................................................................................................................................5
Advertising.............................................................................................................................................6
S.W.O.T Analysis....................................................................................................................................6
Strengths:..........................................................................................................................................6
Opportunities:...................................................................................................................................7
Weakness:.........................................................................................................................................7
Threats:.............................................................................................................................................7
Operational Decision-Making................................................................................................................8
Firm result’s...........................................................................................................................................8

Overview

In the last few week have been wonderful for Mikes Bikes. Mikes Bikes have shown

complimentary trade and proven to be our strongest lines this semester. We have been

auspicious enough to establish a innovative product lines and are very competitive in the

market. Mike Bikes had some trouble establishing capacity because of an underestimation of

customer demand, but with before time loan we were able to conquer market difficulties,

decrease our debt, and get through with stable, lucrative growth. Customer confidence has

been reinstate in our product lines and we look to the prospect to purify this line and prove to

investors that we are a key player in the simulation market.

Strategies
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8 weeks ago we fashioned short term and long term goals for us to accomplish to make you,

our depositor, happy and profitable. Our short term goals were to provide services of good

quality and quantity, and our long term goals were to create profit for our investors and

shareholders.

MikesBikes Business Simulation

MikesBikes is an motivating, and very effective way of simulating a number of real-life

management decisions obligatory to run a business. The software is easy-to-use- and allows

the customer to analyze by himself the decisions that were put into operation. The spirited

nature of the program also encourages students to separately gain a enhanced understanding

of their decisions as well as the concepts and strategies involved in business. We most of us

learn from the mistakes that we are through. The MikesBikes simulation is appealing way to

achieve knowledge about the development of a business. It allowed us to enlarge on the

ideas taught in class such as creating a trade strategy and using tools like SWOT. On the full,

we found this work out both stimulating and demanding. Working a replicated bike

manufacturing corporation over a time of eight years was an occasion to increase insights on

a real industrial experience. Our team go through the simulation under many assumptions on

the subject of the nature of business operations but was fast to learn our shortcomings from

beginning to end by inheriting challenges, and many trials and troubles. These skills cannot

be erudite by the usual structure of lecturing. Almost certainly the large engaging feature of

the simulation for our team was the competitiveness. We practiced the Single Player edition

methodically, and mastered every piece of it. We were eager to start playing against other

teams. Now that we have erudite that in bid to be number one in the world you have to:

forecast what your competitors are going away to do, use all of the information provided in

the program, play offline to experiment decisions, build up a strategy, and have outstanding
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team dynamics.The MikesBikes’ erudition experience was enjoyable for all because we were

excited and out team was very flourishing. For every one of us, this was our first inclusive

introduction to many industry management concepts. Every time we countenance a difficult

decision, we would talk about it among ourselves with each person having a different

viewpoint, creating a very educational setting. This setting positively contributed to a

personal, long term indulgent of the business principles and our team’s business success. It is

a great opportunity to learn many vital business skills.

Our team developed a new language that included common business terms that most of us

had not used earlier to this experience. We erudite how to read and understand financial

reports allowing us to decide what areas interrelate and how to poise the effects of decisions.

We were talented enough to learn how to choose out the important variables in business

reports to scrutinize our results in assessment to other teams.

Common Advice
It is at the moment very obvious to us that you cannot run a business unwillingly. Apparent,

good decisions cannot be finished at the last minute; time and power must be put into each

decision in bid to do well in the business .One of the largely important lessons erudite was

never to take for granted you’ve succeeded before the simulation is ended. We obsessed the

highest shareholder worth for all rollovers apart from the final round. Our appointment

dropped to fourth in the final round as a effect of poor distribution of funds due to the

postulation that we couldn’t be beat.When the simulation started, we feel certain in our

team’s vision, goals, and strategic plan. But after the first rollover, we rapidly became alert
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that the victory of a company relies profoundly on the dynamics of the market. The tactical

decisions of competitors ponder heavily on the overall course of a company. Our innovative

plan quickly became out of date in the turbulent bike industry, and we were strained to re-

evaluate our spirited positioning. To this conclusion, we erudite that continuous alteration

and version are required elements for a triumphant business. Divergence from the early

tactical plan were essential as a result of changing market dynamics. Since we learned that it

is very vital to recognize all the mechanism of a company and the effects of each person

decision. Whether the choice concerns consignment size or investor open relations, every

part is significant and should not be left uncharted.

To Play Offline
By Playing offline in the MikesBikes simulation is very important to check decisions. We

were competent to try out decisions to perceive how well it worked and make the essential

changes to get the finest outcome. Most of our result strappingly highlight the use of both

offline simulations and the player’s guide in order to be further competitive. When user starts

to disseminate oneself with the MikesBikes program, it is simple to take for granted that skill

with the software would be more imperative than definite business sense. The offline

rollback alternative allows a player to gain precious nearby into the details of the simulation

through numerous iterations. We become aware of it as we steps forward with these trials

that separate business values and strategies begin rising. The decisions we made in

secretarial, sales, operations, administration, and marketing were all intricately associated.

This connection go after definite trends which react to sets of amalgamated decisions that

comprise a particular strategy or plan of hit. As such, it is tough to identify only decisions as

being the medium for success over a given rollover year. In general, the most vital lessons we

erudite were to keep purposeful in terms of creation and marketing, to take note of the moves

of the antagonism, and to do offline rollovers.

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Perceptual Plan

During our study we discovered that one of the explanation to market control was to

repeatedly adjust the bikes to stay in the center of the perceptual plan for each market section.

We were successful at deed this for our kids’ bike; nonetheless we attempted to do this with

our escapade bike too late in the game, and therefore did not have a opening to get the wanted

results.We discovered the perceptual plan was necessary. We learned to incessantly adapt the

specifications on our products in bid to stay in the centre of the perceptual plan. During the

start of the game, many of our competitors bikes were out of series and thus, a lot of their

resources were exhausted because of it.

Advertising
When in the untimely rollovers, our team had complexity with publicity and quality. We

were well under the competition in both of these aspects, which harm our sales. After study

of what the competition was undertaking in these aspects of the game, and appear at the

sections of the Help Files, we were able to decide the amount that should be put into these

decisions. This certified us to stay spirited for second place. Throughout the whole

simulation we used up a lot on advertising and product gratitude. This did not help us though

as our eminence was so low that advertising may well not make up for our poor standing.

(Mikes Bikes , 2012)

S.W.O.T Analysis
A significant insight gained from our familiarity with MikesBikes is the significance of

detailed competitive or SWOT analysis. We were very determined on our own goals, and as
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a result did not consider previous or possible actions of our competitors. We now understand

that as a successful entrepreneur, one must be able to precisely foresee the actions of

competitors, and pertain strategy accordingly. Learning how to analyze and comprehend the

competitors is vital.

Strengths:
 Mike Bikes was competent enough to give quality yield at low cost weigh against to

our competitors.

 Our developed and marketing operating cost are lower than other organization,

facilitate us to make earnings and increase overall investor value.

 We for all time had usual raw material provider for the production, since we have high-

quality relationship with our raw material vendor. We assign standard funds to preserve

our relations with vendors.

 We have approximately 28 % of market share in our zone.

Opportunities:
 There are almost five markets sections to trade our creation in the market, with the

market size of roughly 802000 units. Which allow Mikes Bikes to sell products to a in

each market section.

 There are merely five firms in one world and no new firm can go into that creates the

probability to gain spirited advantage in the world effortlessly.

Weakness:
 Not doing any expenditure enough on allocation, retail periphery and extra support in

contrast to competitors.
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 Prominent to exploit the plant capability correctly.

 Minimum fund allotment to announcement and public relations in comparsion to

competitors.

Threats:
 Competitors initiate new products in the identical market.

 Competitors spend too much amount of money on commercial and PR.

 Change in order of the product in market.

Operational Decision-Making
We sense secure about our marketing and product development ability sets. On the other

hand, it became obvious that we had a flaw in operational and economic decision-making.

Devoid of these basic skills, we were not capable to attain our unique goals. The effective

decisions were vital to make sure that our production measures carry out as powerfully as

possible and precisely met the exact demands of each market. Greater than before production

competence resulted in greater aptitude and profits. Also, precisely meeting order without

over producing supposed that the most favourable numbers of bikes were sold while avoiding

costly inactive time and inventory storage space.

In production on your own, there are a enormous number of variables that require to be

accustomed to attain best levels of manufacture and eminence. The numeral of workers and

plant dimension are calculate simple enough to get the correct result; on the other hand,

manufacturing procedure become much more complex. Decisive what group size was

needed, how much unit time needed to be abridged, or how much raw material record was

needed ,be the new concepts to learn about and consider. Big investments in quality systems
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technology united with a reasonable examination rate endorsed us to reach a high class

directory.

Firm result’s
Week 1(2013)

1- We have decided to product 30,000 units for next year “next decision”

2- We will decrease the number of employees as the idle time for last year was high.

3- We need to spend more money in manufacturing, breakdown, raw materials and setup

time because they were high percentage in last year period.

Week2(2014)

1- We will repurchased equity by 1,500,000

2- We will increase the number of dividends by 20 cents per share.

3- We have decided to design and develop a new style of bike “super bike” in a new

target segment to be more various and target a new segment and try to increase our

profitability.

4- We have decided to decrease the funds that we used to pay for investor relations from

1,000,999 to 500,000 this because we have realised that we spent more money on it in

the last period and did not work.

5- We will decrease a little amount of our spending on advertising expenditure and

public relations.

Week3(2015)

1- we will open a new target segment called “kids style”

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2- We have decided to design and develop new style of bikes one is “super race” and

“super leisure”.

3- We will spend more money on manufacturing.

4- We will increase the amount that we used to pay on advertising expenditure and

decrease the Public Relation expenditure in adventure market segment.

5- We will give extra support to our retailers

6- We will increase our spending on Branding Advertising from 1.200.000 to 1.499.999.

Week4(2016)

1- We have decided to design and develop a new target of bike “Commuters Bike” to be

more various and increase our profitability.

2- We will increase our spending on investor relations from 1.000.000 to 1.200.999$.

3- We will decrease the Dividend from 23 to 15 cents per share.

4- We will spend more money in Advertising expenditure and Public relations in

Adventure and Kids style market segments.

5- We will increase the number of employees by 100 because our factory is becoming

wider and have 4 different market segments. As well As we will spend more money

Average salary.

6- We will increase the planned Production units for the 4 market segments.

7- We will spend more money on Branding Advertising from 1.499.999$

Week5(2017)

1- We will increase the Retail prices for all markets segments.

2- We will increase the Planned of Production Units for all market segments.

3- We will have a new target product called “Commuters style”

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4- We will decrease investor relation from 1.200.999$ to 500.000$.

5- We will sell 10.000 of our plant size and decrease the number of employees that we

have by 150 employees.

6- We will try to increase our shareholders value in next period.

Week6(2018)

1- We will try to increase the shareholders because we have being in lost.

2- We will spend more money on Advertising Expenditure and Public Relations

Expenditure for all market segments.

3- Not produce more products for all markets segments because we already have in our

stock and being unsold.

4- Decrease our spending on Branding Advertising from 2.000.000 to 1.500.000$.

5- We will ask ‘Smartsims’ for Emergency Equity Injection.

6- We will spend more money on investor relations.

Week(2019)

1- We should look at the market summary of the competitors that in our world1 and get

the average of planned production.

2- We will increase the plan of productions.

3- Increase the number of employees by 113 and purchase more plant by 2.000$.

4- Try to increase our shareholders, profit and cash.

Week(2020)

1- Will increase the productivity in all market segments.

2- Will decrease retails price in “Adventure” ,”Race” and “Commuters” market

segments.
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3- Will increase the number of employees by 25 employees.

4- Dividends will be given at 17.00$ per share

5- Increase investor relations.

Week(2021)

1- Increase planned productions and decrease the prices of the products

2- Decrease the retail margin

3- Spending more money on branding

4- Increase the numbers of employees by 160 to produce more.

References:

1. Mike Bike Project Simulation, 2013, retrieved from

http://www.studymode.com/essays/Mike%27s-Bike-Project-Simulation-479087.html

2. Mikes Bikes, 2012,

mikesbrownies.wikispaces.com/file/view/Mikes+Bikes+Final+Report.docx