Dirt Bikes USA is an independent Off-Road Motorcycle manufacturer base - PDF document

Dirt Bikes USA is an independent Off-Road Motorcycle manufacturer based in s and motorcycle enthusiasts, Dirt Bikes design techniques and combining the top components from manufacturers all over the world. Dirt Bikes USA has been producing high quality race and recreational off-road motorcycles for ers and impressive trophy case from dirt bike races from all over the United States as evidence to our continuing excellence. Dirt Bikes USA strives to continue to grow as a company and to always offer products that will consistently perform at the top levels of competition for years to come. When the Dirt Bike’s founders realized ths on the market were preformed and looked becompetition. Their culture comes from many different factors. They were both very young when they started out with the companed company and maintain their values of family, teamwork, exceptional quality, and attention to detail. Dirt Bike’s offers four different models for customers. Dirt Bikes does not directly sell its products to their customers. It uses a network made up of 40 distributors, mainly located in the Midwest and Western United States. Also there is a small 1 butors that also sell otheand motorcycles. They also heavily promote their business at racing events. Hierarchy Around 120 employees work for Dirt Bikes have 4 people in the parts department and 10 people on the service department to service warrantees and help customers with problems. Five people work in the shipping and receiving department. They also have a marketing manager and 5 sales representatives. The corporate administrative staff has a total of 10 employees. The company’s organizatiflat. All they have is a CEO and a COO with three managers under them. After that are just all of the workers. Department Number of Employees Total Employees 120 Parts Department Service Department Shipping/receiving Marketing/Sales Administration Corporate Basic Employees The kinds of information technologies that would be the most important for Dirt Bikes would be something to track theialso have something to track exactly how many of each bike they sell so they will be able to tell which ones are the best need something to keep track of their employees and how much they make so they will be able to accurately do payroll. 2 Financial Statements For the period from 1999 to 2002, sales at Dirt Bikes USA have grown steadily; an increase of 1.2 million dollars from 1999 to 2000, 1.7 million dollars from 2000 to 2001, and 6 hundred thousand dollars from 2001 to 2002. Hosuffered a drop in sales of 5 hundred thousand dollars. The best selling product from that time Over the five year period, the ratio between Domestic and International Sales has hovered between 8 and 10 percent. Domestic and International sales both increased from 1999 to 2000, and 2000 to 2001. Both decreased from 2002 to 2003. However, from 2001 to 2002, Domestic sales increased, while Intern Sales increased from 2001 to 2002 by 3.5 million dollars, but decreased from 2002 to company have increased every year. The firm is in debt 30 million dollars, almost half of its total assets. Sales by Model Model 1999 2000 Enduro 250 1201 1663 Enduro 550 2832 3290 Moto 300 1755 1932 Moto 450 463 598 TOTAL 6251 7483 Domestic vs. International Sales 1999 2000 Domestic 5723 6843 International 528 640 TOTAL 6251 7483 % International 3 Consolidated Statements of 2001 Revenue Net sales 61,529 Cost of goods sold 41,072 Gross profit/(loss) 20,457 Gross margin Operating expenses Sales and marketing 3,944 Engineering and product development 2,339 General and administrative 1,392 Total operating expenses 7,675 Operating income/loss 12,782 Other income/expense Interest income/expense Other income/(expense) (6,254)(2,914)(3,080) Income before provision for income taxes 9,782 Income taxes 535 Net income/(loss) (1,444)7,310 9,247 Net margin Summary Balance Sheet Data At December 31 2,001 Current assets Cash and cash equivalents 6,891 Accounts receivable Inventories Total current assets 25,606 Property plant, and equipment 32,002 Other assets 1,834 Total assets 59,442 Accounts payable 7,592 Accrued expenses and other liabilities 8,654 16,246 Long-term debt 8,890 25,136 Shareholders' equity 354853511334306 Total liabilities + sh59,442 4 rnational Markets There are several countries that can be eFrance, Spain, Italy, Germany, Portugal, Austria,locations are Taiwan as well as some of the smaller countries in Europe and South America. milar sports are gaining popularity in Asia and South American also. These dirt bikes could alsoneral transportation in use exclusively for entertainment. Sponsoring bikes into other markets. The website would have the same general design, but the primary language would vary site. The site would offer videos of all of the bikes in use, pictures and computer generated 3D al specifications. Accomplishments of any racing team and profiles for the individuals would be included within the site. A public message board Producing dirt bikes as a whole activities at Dirt Bikes USA that make the most value. One example of how Dirt Bikes USA provides value to its customers would be the manufacturing of the four contemporary models of Dirt Bikes with kick and 5 her example of Dirt Bikes USA providing value to its customers wstyles that are suitable for Kawasaki, Suzuki, Yamaha, Honda and KTM are other companies that are major competitors of Dirt Bikes USA. The competitor’s bikes are so much more expensive because you are paying for the name brand also. Dirt Bikes USA $1,200.00 $2,200.00 Kawasaki $4,900.00 $7,000.00 Suzuki $3,100.00 $6,600.00 Yamaha $2,500.00 $7,100.00 Honda $3,150.00 $7,200.00 $6,500.00 $7,800.00 Sales, product advancement and advertising strategies are the competitive forces that can affect the Dirt Bike USA industry. Trying to creatin order to maximize the profits for the company is the competitive strategy that Dirt Bikes USA Dirt Bikes can benefit from e-commerce because it will be ablea broader group. Many people may not have heard of their company before and by creating an e to more people. Dirt Bikes should sell both motorcycles and 6 ng from them over the web. By selling both they will get more customers and therefore more sale to advertise and for customer service. This way people who cannot make it to a distributor right away can get more information and be able to communicate with the company. Cost of a Website A web site would add value to Dirt Bikes because they will be able to make more of a profit with the new customers that they will gain from having therce site. For the first two months it will cost $25.97 plus a 1.5% ing on each month’s sales. It would be a worthwhile investment foxpecting to make at least $5000. the site is not really worth it. Dirt Bikes home page should be a colorfulhaving a good time. Above these pictures should be a menu that will take you to the various they offer, contact information, r. A good example of this is the Honda site. http://powersports.honda.com/motor 7 It is important to collect certain data on our customers and potential customers to ensure marketing efficiency and to increase targeted service to our customers. We need to collect regional and demographic data on potential customersales. For existing customers, we need to collquality of service for our products. The use of cookies on the Dirt Bikes USA website will provide advantages to both the company and the customer. The tracking information gathered by the cookies will help develop a demographically sound marketing plan and provide a streamlined web experience for the customer that is detailed faced with some privacy issues; like that customers may be unaware of information collected by the cookies, consent would be needed from the individuals if that information were to be shared, information gathered byorganizations, like TRUSTe, exist to assure customers of a companies’ dedication to information . Since some customers won’t read the privacy policy on the website, the symbolassuring the customers that their private information will be kept safe; this provides a clear advantage over companies that don’t join an internet organization. Dirt Bikes USA’s site would conform to the standards made by P3P, thus taking another step to remove the uncertainty of the protection offered that some customers may hainformation will give the customers control over sharing their own information, just reducing some of the liability of Dirt Bikes USA. 8 Dirt Bikes U.S.A. Online Privacy PolicyThank you for visiting the Privacy Policy page of Dirt Bikes U.S.A.'s ("DBUSA") website. DBUSA values your right of privacy, and wants you to feel comfortable using its website. This page describes our privacy policy for the Website, and informs you of certain uses and potential disclosures of your personally identifiable information. 1. Your AcceptanceBy using and/or visiting the DBUSA Website, you signify your assent to both the content of this Privacy Policy and are incorporated herein by reference. If you do not agree to any of these terms, you should not use the Website. Should DBUSA make any substantichange to this Privacy Policy, we will publish an amendment, or we may email you if you have opted in for email notifications. 2. Dirt Bikes USA WebsiteThis Privacy Policy applies solely to the DBUSA Website, which may contain links to third party websites that are not owned or controlled by DBUSA. DBUSA has no control over, and assumes no responsibility for, the content, privacy policies, or practices of any third party website, which may collect both passive and personally identifiable information. In addition, DBUSA will not and cacensor or edit the content of any third party site. By using the Website, your expressly relieve DBUSA from any and all liability arising from your use of any third party website. Accordingly, we encourage you to be aware when you leave the DBUSA Website, and to rethe terms and conditions and privacy policy of each other website that you visit. 3. What Type of Information Do We Collect and Use?When you visit the DBUSA Website, we may collect passive information about your visit. Passive information is any form of aggredata, navigational data, tracking data, click-stream data, or historical data, which does not on its own personally identify you. Passive Information includes information collected through cookies. When you register a product, apply for extended service through ourservice program, send us an email, subscribe to one of our newsletters, or otherwise submit any data through and/or to the DBUSWebsite, we may also obtain and collect personally identifiable information. Personally identifiable information is information collected online that personally identifies you, such as by name, email address, or mailing address. DBUSA provides you with the ability to "opt-out" of certain uses of such personally identifiable information. 4. Maintenance & Opt-Out of InformationIf you wish to opt-out of our use and disclosure of your personally identifiable information, other than as expressly permitted in this Privacy Policy, you will have the option to do so when you first submit your personally identifiable information via the DBUSA Website. Simply state your desire to opt-out where indicated. If you wish to amend or delete any personally identifiable information that you have previously provided without opt-out, please send us a message at privacy@dirtbikesusa.com . We will endeavor to provide a simple way to review, correct, update or remove personally identifiable information you have given us. If you wish to stop receiving a DBUSA newsletter or other circulation, please follow the "unsubscribe" instructions contained in each newsletter. 5. How Do We Use Personally Identifiable Information?If you have not opted in for our general use of personally identifiable information, DBUSA will not use or disclose such informexcept as follows: - to communicate directly with you in connection with your specific requests; - to validate credit card numbers; - to permit our website designers to develop features and services that meet your needs; - to tailor your experience on our Website, showing you individually tailored content; - to comply with a lawful subpoena or court order; - to remedy any violation or breach of an agreement between you and DBUSA; and - to prevent harm to the property or rights of DBUSA or its customers. If you have opted in of our use and disclosure of your personally identifiable information, DBUSA may also use such information for its own marketing and survey purposes, and DBUSA may appoint third party agents in connection with such marketing and survey efforts, subject to a confidentiality agreement concerning the information. DBUSA will not, however, disclose any personally identifiablinformation for use in connection with a third party's marketing efforts. 6. Aggregate InformationDBUSA may share aggregate statistical information with business paher third parties, but none of them receive personally identifiable information. For example, we may tell an advertiser that X number of visitors visited a certain area on a website, or that Y number of men and Z number of women applied for extended service, but we would not disclose anything that uniquely identifies those individuals. 9 7. Unsolicited Emails Received by YouDBUSA does not send unsolicited bulk emails to anyone who has requested that we do not contact them. We send newsletters only tthose who have taken affirmative steps to subscribe. If you have inadvertently received one of our newsletters, or if you simply wish to stop receiving them, please follow the "Unsubscribe" instructions contained in each newsletter or send a request to be unsubscribed to privacy@dirtbikesusa.com. 8. CookiesYour browser software includes a feature called "cookies." We may use "cookies" to enhance your experience with our site. If enabled, cookies may store small amounts of data on your computer about your visit to the DBUSA Website, including your page preferencesCookies tell us nothing about you personally, unless you specifically give us additional information. DBUSA does not merge or associate our cookie information with any personally identifiable information obtained by us or from third parties. Cookies simply assisttracking which of our features you like best and what content you may have viewed during past visits. When you re-visit the DBUSA Website, cookies can enable us to customize our content according to your preferences. We may use cookies to: (i) keep count ofreturn visits to the Website; (ii) accumulate anonymous, aggregate, statistical information on website usage; (iii) deliver content specific to your interests or past viewing history; and (iv) save your password so you don't have to re-enter it each time you visit our sites. You can also disable cookies. By modifying your browser preferences, you can accept or reject all cookies, or request a notification when a cookie is set. 9. P3P (Platform for Privacy Preference) ConformanceOur cookies conform to the emerging P3P privacy standard, developed by the World Wide Web Consortium. P3P provides a simple, automated way for users to control the use of personal information. Browsers like Microsoft Internet Explorer 6.0 conform to the P3P standard. At its most basic level, P3P is a standardized set of multiple-choice questions, covering all the major aspects of a privacy policy. Taken together, they present a clear snapshot of how a site handles personal information. P3P-enabled browsers can "read" this snapshot automatically and compare it to the consumer's own set of privacy preferences. P3P places privacy policies where users can find them, in a form users can understand, and, most importantly, enables users to act on what they see. 10. IP AddressesAn Internet Protocol ("IP") address is a number assigned to your computer whenever you access the Internet. An Internet ServiceProvider ("ISP") typically assigns a random dynamic IP address at the time of your dial-up. For local area network ("LAN"), DSLcable modem users, a static IP address may be permanently assigned to a particular computer. DBUSA may record the IP addresses visitors to its Website. While an IP address may reveal your ISP or geographic area, we cannot determine your identity solely based upon your IP address. Other websites you visit have IP addresses, and we may collect the IP addresses of those websites and their pages, but these IP addresses are never associated with Internet users. 11. Web BeaconsThe Website may contain web beacons, which are electronic images (sometimes called "single-pixel gifs") that allow us to count page views, or to access cookies. We may also include web beacons in HTML-formatted newsletters containing graphics that we may send to opt-in subscribers, to count the number of newsletters that have been opened and read. Our web beacons do not collect, gather, monitor, or share any personal information about our website visitors. They are used only to compile our anonymous, aggregate statistics about website usage. 12. Computer ProfilesDBUSA may also collect and accumulate other anonymous data that helps us understand and analyze the Internet experience of our visitors. For example, we may accumulate visitor data relating to referring domain names, the type of browsers used, operating system software, screen resolutions, color capabilities, browser plug-ins, language settings, cookie preferences, search engine keywords and JavaScript enablement. None of this information is personally identifiable and we only share this information in the aggregate, reflecting overall website or Internet usage trends, as outlined in this Privacy Policy. 13. Chat Rooms and ForumsThe DBUSA Website may in the future include chat rooms, forums, message boards, and/or news groups. If so, DBUSA as a passive conduit will not be liable for any of the transmitted information. Any information that is disclosed in these areas becomes public information. You should exercise caution before disclosing your personal information via these public venues, which you do at yrisk. If you do so, you may receive unsolicited emails or "spam." DBUSA cannot safeguard the privacy of personally identifiableinformation that is disclosed and can be viewed or accessed online in this manner. 14. SecuritySome pages of the DBUSA Website use security measures to protect the loss, misuse and alteration of information that is transmitted through the Website. These pages use Secure Socket Layer ("SSL") connections with 128-bit encryption for certain transactions and confidential data. When you use a secure browser, all information you submit comes to us over the Internet in an encrypted form, with a digital certificate issued by a third-party certification authority such as TrustE®. To view this certificate, click on the image of the 10 closed lock or the solid key on the bottom bar of your browser window. We also maintain our servers in locked facilities with secure access. Unfortunately, no data transmission over the Internet or any wireless network can be guaranteed to be 100% secure. As aresult, while we strive to protect your personally identifiable information, we the security of any information you transmit, and you do so at your own risk. Once we receive your transmission, we make our best effort to ensure its security on our systems. You can report network abuse and any risk of security violations to us by emailing privacy@dirtbikesusa.com. 15. Children's Online Privacy ProtectionThe DBUSA Website complies with the Children's Online Privacy Protection Act of 1998 (COPPA). COPPA and its accompanying FTC regulation protects the privacy of children using the Internet. DBUSA does not knowingly collect contact or personally identifiable information from children under 13. The DBUSA Website is not intended to solicit information of any kind from children under 13, and is designed to block our knowing acceptance of any such information, wherever age related information is requested. It is possible that by fraud or deception we may receive information pertaining to children under 13. If we are notified of this, as soon as we verify the information, we will immediately obtain parental consent or otherwise delete the information from our servers. If you want to notify us of our receipt of information by children under 13, please do so by emailing us at privacy@dirtbikesusa.com. Cost of Software OwnershipMS Office 2007 Word Processor Word Writer Spreadsheet Calc Database Access Base Electronic Presentation PowerPoint Impress E-mail software Publish Web pages FrontPage Price $400 $70 Although Sun StarOffice has a lower cost, the products offered do not fill all of Dirt Bikes USA’s requirements. The better choice, at Office also has the ability for the system to beSoftware Cost $400.00 Installation fee $100.00 Training fee Cost Per User $525.00 Total Users $8.00 $4,200.00 Annual Tech Support $1,260.00 Annual Downtime $630.00 Annual Cost $1,890.00 (Annual) Cost over 3 years $5,670.00 Grand Total $9,870.00 11 12 13 14 Since the Senior Managers of Dirt Bikes USexpenses, they believe that the use of telecommunications should be practiced more. Commercial online services, e-mailing, and video-conferencing on interactive TVs are examples of modern useful to help Dirt Bikes cut down on travel that could benefit from the telecommunication application of emailing. Teleconferencing between conference locations of corporations during meetings is a specific work activity that could benefit from the telecommunication application of videoconferencing on interactive TVs. reen monitors to use for video-conferencing purposes cost roughly $1000 or over, and the web-cams that would be used to capture the images would cost The various Internet tools could help the employees at Dirt Bikes because they could start communicating through e-mail rather than on the phone. This will save Dirt Bikes money because all of their employees are equipped with internet service already, so e-mail will not have any extra charges attached to it. All Employees Marketing Personnel E-mail Free communication Search engines Look up information on competitors for free All of these departments could benefit from intranets because each department could be formation. The sales and marketing department would greatly benefit from the creation of an intranet. The type of 15 information that could be provided by an intranet for that department would be information about how their marketing campaigns are working out. It will also allow them to have accurate information on how many bikes they are sellreceiving this information the people that are inhave more information about what is working and what is not working. This will help them to develop new campaigns that will be successful. It will also allow them to see what bikes are selling and which ones are not as popular. This will allow them to decide models or what bikes they should advertise morethe sales and marketing department work to a higher capacity and make more accurate decisions. RidingGear.com sells a variety of fuel tank$15.99. For each additional fuel tank, the shipping fee; except ground which remains free, Orange County Choppers sell a few fuel tank$600.00. All shipping, however, is free; from 2-7 handling fee. Therefore, the total cost is just that of the fuel Although orange County Choppers offer a better deal when it comes to shipping, Dirt Bikes should consider using RidingGear.com for 16 lower cost. Riding Gear also offers more methods Logility’s Voyager provides solutions for supply and demand planning, manufacturing planning, and management of both warehouses and transportation. The demand planning software will give Dirt Bikes the ability to it margins, reduce their market faster through more efficient planning. Supply planning will help reduce costs when it comes to shipping products, reducing costs by met, so changes can be made to meet the orders. The supply execution portion of the program will increase pe. The efficiency of shipping can be drastically improved, while the shipping cost is cut. Cadre’s Supply Chain Execution Software everything with a single program. Itng at the same time, in real-time; products in Logility provides a better system that will suit Dirt Bike’s needs more completely as the company continues to grow. The Logility system works with more then just supply chains, so Dirt Bikes won’t need to purchase another system for other departments. Having a single system will also allow the information to be shared between departments very easily since all of the file types will be the same. 17 efficiency, it is important to incorporate nd enhance our competitive advantage, primarily our unique products and business procedures. Our most important knowledge assetsdesigns, our customer relations management, and our sales/marketing processes. We can document much of this knowledge, as the engineers can draft their designs, and our customer and sales personnel can develop SOP documents. However, a good deal will remain tacit. Our and many techniques for dealing with people, cannot be recorded in any traditional fashion, the “tricks of the trade” as they may be known as. There also elements of knowledge outside the company that will not only enhance our nal. Since Dirt Bikes USA uses outside engine manufacturers, we must be knowledgeable abou market continues to expand, our marketing staff can use outside media to increas trends. Any company requires knowledge on economic trends; this cocompensation and benefits for employees. Knowledge management systems can provide benefits to all the functional areas of the Work Systems to assist in turning their ideas inmay use computer aided design to create a new motorcycle frame to work with a new motor from 18 Our marketing and sales teams can use IntellSystems to analyze patterns in their functional areas. Marketing can use internal and external ising campaigns based on trends extracted from data analysis. Our sales team can analyze annual sales figures to determine periods when extra incentives or specific financing plans may be necessary. Our managers, for both the functional areas and the executives would employ an Enterprise Knowledge Management System. This system would contain as much information as possible that can be documented and organized, fromour managers to make the most informed decisicessive as managers can personally interface with the small number of employees for an opinion or other form or tacit knowledge. By using the internet, Dirt Bikes USA can By maintaining a visible internet presence, we can acquire information for marketing purposes team can link into rs to work out design issues. The company as a whole will benefit from using dirt bike enthusiast sites, message boards, and forums because in touch with the current trends in the market and the needs and wants of the customer. Enterprise Information Portalresources to our employees to aid them in completing their objectives. For example, a portal designed for our sales team would link to in depth sales information. This would include the database of raw sales data for the past and present, and forecasting for the future. Sales trends lable. Sales team members would be able to post to a message 19 board to provide semi structured documentation for tacit knowledge. This portal would resemble a typical internet interface. It would require a secure login to protect our sensitive financial data. The homepage would have a constantly updated news section from both the dirt bike and to all of the information previously mentioned. In conclusion, knowledge management is an important aspect of ensuring our company’s success for the future. We are continually seeking to employ the best technology to exploit our competitive advantages and knowledge management knowledge that will allow us to accomplish that. Dirt Bikes USA has great potential as a company to continueming the best company that it can be. The future to this company.