Mike's Bikes

Executive Summary

With regards to the Board of Directors,

Go-Go Bikes is a corporation that is located in Waterloo, Ontario. For the most part, Go-Go Bikes displayed a steady performance. It was when we launched our first new line of bikes when we slightly faltered. We then recovered in the next year, with the help of the youth bikes, our second new line of bikes. However, the following year we did not do as well. The challenges faced by Go-Go Bikes include aggressive pricing by our competitors and large expenditures by our competitors in advertising and branding. The overall marketing strategy implemented by Go-Go Bikes is a cautious type of strategy. We spent small amounts in advertising and branding compared to our competitors. We also increased in small increments the amount spent on advertising and branding. We were not aggressive in advertising and branding compared to our competitors. The marketing strategy implemented for our Road Bike is relatively similar to the marketing strategy implemented for our Mountain Bike at the time we launched our new line of bikes. The similar marketing strategy led to low sales and large amounts of unsold inventory. The marketing strategy for youth bikes was relatively aggressive compared to our marketing strategies for our two other bikes. The more aggressive strategy for youth bikes resulted in high sales and sold out inventory. Our corporation was unable to match the marketing strategy with the appropriate amount of inventory produced to maximize our efficiency. The financing used by Go-Go Bikes to fund its operations is mainly equity financing. This is a good choice since we are not liable to pay dividends until our Board of Directors decides to do so. We lowered our debt financing when we could so that it would be favourable to our shareholders. Overall, we did not rely on debt financing to fund our operations. Overall, Go-Go Bikes performed reasonably well and we will keep the errors to a minimum in the future....