You are responsible for overseeing a bicycle start-up company. You led this company through its first six quarters, making strategic and tactical decisions to create a successful business in a competitive marketplace.
As a leader in your business, you are responsible for reporting to other stakeholders about the performance of your business during its first six quarters. Your report will provide a detailed overview of the financial performance of the business. It should provide a data-driven analysis of your business decisions and the outcomes of those decisions.
A. Submit a spreadsheet exported from the Marketplace Simulations business simulation that contains your final (i.e., Quarter 6) cumulative balanced scorecard report in the simulation with a cumulative total performance score of 0.001 or higher.
B. Upload the final (i.e., covering Quarters 1–6) income statement and final (i.e., covering Quarters 1–6) balance sheet in two separate, unaltered spreadsheets exported from the business simulation with a verification link included in each spreadsheet.
Note: The correct income statement and balance sheet can be accessed using the “Final Income Statement” and “Final Balance Sheet” links in the Web Links section below. You must be in Quarter 7 to view the final income statement and final balance sheet, which include data for Quarters 1–6. Click on the “Export” icon in the upper right-hand portion of the appropriate page to download each spreadsheet. The verification details will be contained within each spreadsheet that you export from the simulation in a tab titled “Verification Details.”
C. Prepare a written report in which you do the following:
Note: It is recommended that you use the attached "Business Performance Report Template" to structure this report.
1. Describe your business briefly, including information about the locations of sales outlets, the products you produce, and how your products are manufactured.
2. Select three different topics from the following list:
• marketing (advertising and internet marketing)
• store expenses and sales force
• pricing (including rebates)
• research and development
• use of loans and cash
a. For each selected topic in part C2, identify a specific decision from the simulation that relates to the chosen topic and explain why you made the decision.
b. For each selected topic in part C2, use supporting data from the final income statement or final balance sheet to explain how each decision affected your company’s financial performance, using the following criteria to cite data:
• For decisions related to marketing, store expenses and sales force, and research and development, cite data from the “Expenses” portion of the income statement.
• For decisions related to pricing (including rebates), cite data from the “Gross Profit” or “Revenue” portion of the income statement.
• For decisions related to use of loans and cash, cite data from the “Debt and/or Cash” portion of the balance sheet and/or the “Expenses and Profitability” section of the income statement.
3. Describe how one business decision you made in the business simulation would have an ethical implication if the simulated business were a real-world business. Focus on at least one of the following topics in your explanation:
• socially responsible business practices
• fair business practices
• rights and well-being of workers
• rights of customers and other stakeholders
• diversity of the workforce
• compliance with laws, regulations, and reporting requirements
Note: The business decision described in part C3 can be one of the decisions identified in part C2 or a different decision from the simulation. These topics have been covered in previous business courses in your degree program. External research is not required. You can access your simulation using the provided “Marketplace Simulations (General)” web link.
D. Acknowledge sources, using in-text citations and references, for content that is quoted, paraphrased, or summarized.
E. Demonstrate professional communication in the content and presentation of your submission.
Awesome Bike’s
C1. Business Overview
" Our mission is to build relationships and empower others in the surrounding communities through bicycles to be more active and live life to the fullness. Here at Awesome Bikes will like to meet every person's needs to find the best fit and quality of bikes. We strive daily to meet our needs. "Our goal is to reach as many customers as possible, that is why we opened our first retail locations in Bangalore, then expanded to Rio de Janeiro, Amsterdam, and New York where we produce a variety of bikes, at many price points, in all major categories, like recreational, mountain, and speed. We produced custom 3D-printed, carbon fiber bikes, using the just-in-time manufacturing method.
C2. Financial Analysis
Awesome Bike’s used marketing, store expenses, force sales, and the use of bank loans.
Topic 1
Marketing –
When it came to our marketing goal at Awesome Bike’s; our goal was to reach as many customers as possible and the most effective way to get the word out in regards of our awesome bikes and new business. Awesome Bikes decided to put a priority on advertising and internet marketing to grab customer interest in our bikes. Using the market research, we carefully selected which channels to use to reach out target customers to expanded our business in marketing efforts to gain as much exposer as possible. When going over our income statement, our advertising and internet marketing expense had increased from $60,283 in Q1 to $111,500 in Q6, but the cost percent of gross profit from Q1had not cumulate profit for this quarter but looking at Q6, indicating that our ads was more effective over time.
Topic 2
Store Expenses and Sales Force –
With the marketing was to reach as many customers as possible, Awesome Bikes took an approach with retail markets and sales expenses. The mission was that if we could expand more in more market this would allow a salary package that is beneficial for both sales team and the business. We wanted reach more customers, market share, and have the best team in place to deliver the best for our customers. From Q1 to Q6, our store and sales expense had a 70%.
Topic 3
Loans –
Although Awesome Bikes was aggressive in reaching as many customers as possible, by expanding into more markets, increasing our sales teams, and adding equipment to production, we decided against using loans to expand. By taking this approach, we increased our cash on hand from $405,910 in Q1 to $5,519,001 in Q6 and our
.
C3. Ethical Decision-Making
Rights and well-being of workers –
Awesome Bikes understands that our employees are vital to our success and worked hard to provide best-in-class salaries and benefits. Our overall compensation package per employee went from $19,310 in Q1 to $23,898 with an overall satisfaction rate of 80.9%.
,
Cumulative Results for Quarter
| Cumulative Results for Quarter 6 | ||||
| Indicator | Minimum | Maximum | Average | Awesome Bike's |
| Cumulative Total Performance | 0.211 | 14.420 | 5.048 | 0.587 |
| Cumulative Financial Performance | 6.090 | 32.798 | 17.306 | 7.524 |
| Cumulative Market Performance | 0.096 | 0.305 | 0.204 | 0.133 |
| Cumulative Marketing Effectiveness | 0.696 | 0.766 | 0.742 | 0.730 |
| Cumulative Investment in Future | 3.742 | 7.664 | 5.639 | 6.281 |
| Cumulative Wealth | 0.582 | 1.172 | 0.887 | 0.582 |
| Cumulative Human Resource Management | 0.745 | 0.769 | 0.761 | 0.769 |
| Cumulative Asset Management | 0.170 | 0.592 | 0.398 | 0.351 |
| Cumulative Manufacturing Productivity | 0.703 | 0.929 | 0.828 | 0.844 |
| Cumulative Financial Risk | 0.963 | 1.000 | 0.993 | 0.963 |
| End of Worksheet |
Verification Details
| Verification Details | For internal use only |
| External ID | 000856902 |
| Verification Link | https://game.ilsworld.com/mpl/web7/export.php?token=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJpc3MiOiJodHRwczovL2dhbWUuaWxzd29ybGQuY29tL21wbC93ZWI3L2V4cG9ydC5waHAiLCJhdWQiOiJBTlkiLCJzdWIiOjExNDIwOTU3LCJpYXQiOjE3MDAyNDY5ODcsImV4cCI6MTcxNTk3MTc4NywianRpIjoiNTI2NGVjZDFlOGQ2MjM4NmY1M2YyZTQ4NmExMzA5MzgiLCJyZWFsR2FtZUlkIjo0MzcyMjgsInRlYW0iOjE3OCwicXVhcnRlciI6NiwiZGVjaXNpb24iOiJDdW11bGF0aXZlQmFsYW5jZWRTY29yZWNhcmQifQ.yjySHVsoQsRlZeL706yWfdrwejsqH3HgrP65H4aOldI |
| End of Worksheet |
,
Income Statement
| Income Statement | ||||||
| Report Item | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Quarter 5 | Quarter 6 |
| Gross Profit | ||||||
| Revenues | 0 | 581,965 | 735,405 | 901,830 | 1,317,650 | 1,362,100 |
| – Rebates | 0 | 0 | 0 | 8,150 | 6,950 | 7,700 |
| – Cost of Goods Sold | 0 | 330,492 | 382,626 | 453,028 | 677,547 | 670,651 |
| = Gross Profit | 0 | 251,473 | 352,779 | 440,652 | 633,153 | 683,749 |
| Expenses | ||||||
| Research and Development | 60,000 | 150,000 | 150,000 | 954,141 | 180,000 | 210,962 |
| + Advertising | 0 | 96,283 | 84,000 | 110,000 | 83,500 | 141,500 |
| + Internet Marketing Expenses | 0 | 0 | 9,000 | 33,000 | 45,547 | 75,674 |
| + Sales Force Expense | 0 | 44,107 | 89,214 | 146,481 | 176,054 | 177,857 |
| + Store Expense | 84,000 | 103,000 | 166,000 | 274,000 | 136,000 | 136,000 |
| + Marketing Research | 0 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 |
| + Shipping | 0 | 7,443 | 8,998 | 10,874 | 13,890 | 13,987 |
| + Excess Capacity Cost | 0 | 0 | 0 | 0 | 0 | 0 |
| + Depreciation | 0 | 10,000 | 40,000 | 70,000 | 110,000 | 130,000 |
| = Total Expenses | 144,000 | 430,833 | 567,212 | 1,618,496 | 764,991 | 905,980 |
| Operating Profit | -144,000 | -179,360 | -214,433 | -1,177,844 | -131,838 | -222,231 |
| Miscellaneous Income and Expenses | ||||||
| + Other Income | 0 | 0 | 0 | 0 | 0 | 0 |
| – Other Expenses | 0 | 0 | 0 | 0 | 0 | 0 |
| = Earnings Before Interest and Taxes | -144,000 | -179,360 | -214,433 | -1,177,844 | -131,838 | -222,231 |
| + Interest Income | 450 | 0 | 0 | 0 | 0 | 0 |
| – Interest Charges | 0 | 0 | 0 | 0 | 9,765 | 9,936 |
| = Income Before Taxes | -143,550 | -179,360 | -214,433 | -1,177,844 | -141,603 | -232,167 |
| – Loss Carry Forward | 0 | 0 | 0 | 0 | 0 | 0 |
| = Taxable Income | 0 | 0 | 0 | 0 | 0 | 0 |
| – Income Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| = Net Income | -143,550 | -179,360 | -214,433 | -1,177,844 | -141,603 | -232,167 |
| Earnings per Share | -10 | -9 | -9 | -24 | -3 | -5 |
| End of Worksheet |
Verification Details
| Verification Details | For internal use only |
| External ID | 000856902 |
| Verification Link | https://game.ilsworld.com/mpl/web7/export.php?token=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJpc3MiOiJodHRwczovL2dhbWUuaWxzd29ybGQuY29tL21wbC93ZWI3L2V4cG9ydC5waHAiLCJhdWQiOiJBTlkiLCJzdWIiOjExNDIwOTU3LCJpYXQiOjE3MDAyNDcyMjAsImV4cCI6MTcxNTk3MjAyMCwianRpIjoiYTQyZGY1MGI3ZjVhN2UzY2M0YTUxMjVmOWRmM2JkY2IiLCJyZWFsR2FtZUlkIjo0MzcyMjgsInRlYW0iOjE3OCwicXVhcnRlciI6NiwiZGVjaXNpb24iOiJJbmNvbWVTdGF0ZW1lbnQifQ.84aVOhUWpc5Lxam96rbwEvI9bhO92Os77mSpeJrwkLw |
| End of Worksheet |
,
Balance Sheet
| Balance Sheet | ||||||
| Report Item | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Quarter 5 | Quarter 6 |
| Current Assets | ||||||
| Cash | 1,086,450 | 727,090 | 332,657 | 764,813 | 753,210 | 411,043 |
| + 3 Month Certificate of Deposit | 30,000 | 0 | 0 | 0 | 0 | 0 |
| Long Term Assets | ||||||
| + Net Fixed Assets | 240,000 | 950,000 | 1,630,000 | 2,520,000 | 2,890,000 | 3,000,000 |
| = Total Assets | 1,356,450 | 1,677,090 | 1,962,657 | 3,284,813 | 3,643,210 | 3,411,043 |
| Debt | ||||||
| Conventional Bank Loan | 0 | 0 | 0 | 0 | 500,000 | 500,000 |
| + Emergency Loan | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity | ||||||
| + Common Stock | 1,500,000 | 2,000,000 | 2,500,000 | 5,000,000 | 5,000,000 | 5,000,000 |
| + Retained Earnings | -143,550 | -322,910 | -537,343 | -1,715,187 | -1,856,790 | -2,088,957 |
| = Total Debt and Equity | 1,356,450 | 1,677,090 | 1,962,657 | 3,284,813 | 3,643,210 | 3,411,043 |
| End of Worksheet |
Verification Details
| Verification Details | For internal use only |
| External ID | 000856902 |
| Verification Link | https://game.ilsworld.com/mpl/web7/export.php?token=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJpc3MiOiJodHRwczovL2dhbWUuaWxzd29ybGQuY29tL21wbC93ZWI3L2V4cG9ydC5waHAiLCJhdWQiOiJBTlkiLCJzdWIiOjExNDIwOTU3LCJpYXQiOjE3MDAyNDk1ODQsImV4cCI6MTcxNTk3NDM4NCwianRpIjoiNDYzN2U3MjBkYjZhNGEyMTc4ODhhN2MyNDUzZTM4MTkiLCJyZWFsR2FtZUlkIjo0MzcyMjgsInRlYW0iOjE3OCwicXVhcnRlciI6NiwiZGVjaXNpb24iOiJCYWxhbmNlU2hlZXQifQ.uJEDi8Aqndd_cWZqlyTRcTk60H4PT10GZThbWK21nKY |
| End of Worksheet |
,
RUBRIC TASK 1
A: CUMULATIVE BALANCED SCORECARD
|
NOT EVIDENT A spreadsheet exported from the business simulation is not provided. APPROACHING COMPETENCE The spreadsheet exported from the business simulation does not contain the final cumulative balanced scorecard and verification details, or the cumulative total performance score is not at or above the minimum score of 0.001. |
COMPETENT
The spreadsheet exported from the business simulation contains the final cumulative balanced scorecard and verification details, and the cumulative total performance score is at or above the minimum score of 0.001.
|
NOT EVIDENT Neither the final income statement nor the final balance sheet is provided. |
or final balance sheet are incomplete. |
APPROACHING COMPETENCE
Either the final income statement or final balance sheet is not provided as part of 2 separate, unaltered spreadsheets, or a verification link is not provided in each submitted spreadsheet, or the final income statement or final balance sheet are incomplete.
COMPETENT
The complete final income statement and final balance sheet are provided in 2 separate, unaltered spreadsheets with a verification link in each spreadsheet.
|
NOT EVIDENT The submission does not describe the business from the simulation. |
APPROACHING COMPETENCE
The submission provides a description of the business, but the description is not accurately based on the business in the simulation, or the description of the sales outlet locations, the products produced, or how the product is manufactured is not accurate or is incomplete.
COMPETENT
The submission provides a description of the business that is accurately based on the business in the simulation, including information about the sales outlet locations, the products produced, and how the product is manufactured.