Giro

1. What has Jim done well? Poorly?

Well: kept lean operation, went to races to give out free helmets for publicity

Poorly: growing too slowly, Trying to do too many things but needs to focus,

2. Which of the issues listed by Gertes is most pressing? How should he allocate his time between these challenges?

Production and operations: There is no inventory control or accurate forecasting system. Growth has strained physical facilities and we are only using 1 facility for manufacturing. Because of this, He is growing too slow. He has a hot product that needs to be scaled before copy catters take over the market. Top priority is to expand capacity, finance and market.

3. Should Gertes hire Pat Ament? Why or why not?

No he shouldn’t hire Pat. Pat wants a $50,000 salary, which is higher than his previous job. We are a startup with limited resources. He has an MBA with experience in management and marketing, but isn’t worth to give up 25%

Growth Goals

We currently are at 1.3% market share in March and will need to grow to 3% market share in by ear end, 8% in Y2, 15% in Y3. Growth will be based on units sold as it will show the demand of our products and market share percentage. We can jump to the next level of growth by expanding to less premier bike stores, and have sales reps go to these stores and races. I will not focus on any other product except gaining market share of helmets.

Process Design

KSF: Lightweight(50% lighter than competitors), passed both safety standard tests(rare), no plastic outer shell, colorful fabric cap for fashion riders, unique vent system to keep riders cool. Gives more comfort and more protection(pg 14).

Growth Assets: Sales force, Bicycle shops and races

Growth Barriers: Cheap Clones

Future Growth Assets: International Market, Less premier market

Future Growth Barriers: Competition

Setting/Executing Growth Priorities

To do list:

1) Negotiate terms to 10% up front equity with $36k salary for Pat. If he...