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ACCT1014 Accounting, Behaviour and Organisations

Semester 1, 2014

Assessment 1 - Case Study Analysis

DYLAN SPECIALTY BICYCLES CASE

Introduction

Dylan Lee began buying and selling second-hand bicycles at outdoor markets in Melbourne, Victoria, when he was still in his teens. After considerable success with this venture he was able to lease his first store in a busy shopping strip in Doncaster, a suburb of Melbourne, Australia, where he began to buy and sell new bicycles and spare parts. He named his business Dylan Customised Bicycles (DCB).

Dylan’s business has traditionally not competed with large bicycle shops or department stores. Instead Dylan developed his niche in the bicycle market through the provision of customised, made-to-order bicycles, sold to the committed cycling enthusiast. Each bicycle is assembled to the customer’s specifications, with appropriate sizing and gears, etc.

The growth in bike paths around Melbourne in recent years, along with a strong environmental push to reduce the use of cars, has resulted in continued growth in the market for bicycles. Dylan has enjoyed the benefits of this increase in demand to such an extent that he has recently been able to open two new stores; one in Black Rock, another suburb of Melbourne, and one in Geelong, a city to the south-west of Melbourne. These stores are approximately a 1½ hour and 2½ hour drive respectively from his Doncaster store.

Dylan Lee

Dylan has always been the face behind his business, spending everyday at his Doncaster store, engaging directly with customers and keeping an eye on the four sales assistants as well as the store’s day-to-day operations. He has also taken on the responsibility of assembling the customised bicycles, working after hours if necessary. Only when demand increased substantially did he agree to hire another bicycle assembler. Dylan has traditionally undertaken all other roles at the Doncaster store, essentially running the...