Bicycle Outline Plan

Topics: Bicycle, Balance sheet, Revenue Pages: 19 (4848 words) Published: May 28, 2013
IP-4 BikeSmith Annual Report
Ian Blanken & Wishaal Sewambar

Table of Content
1.0 Letter to Shareholders2
2.0Financial Summary3
2.1 BikeSmith in 20073
2.2BikeSmith in 20083
2.3BikeSmith in 20094
3.0 Company Operations5
3.1 Competitors5
3.2 Growth Strategy5
3.3 Future Strategy5
3.4 Goals & Mission5
3.5 Company Structure5
3.5.1 Autonomous8
3.6 Marketing Strategy9
3.7 Marketing campaign10
3.7.1 Press release11
3.7.2 Market Share12
3.8 Sustainability13
3.9 Main events14
4.0 Financial Statement15
4.1 Statement of Financial Position15
4.2 Statement of income16
4.3 Statement of change in equity17
4.4 Cash flow statement17
4.5 Sales of 200918
4.6 Production in 200920
4.7 Ratios21
5.0 Biography of the Company Officers22

Figure 1: Vertical Integration6
Figure 2: Corporate Structure7

1.0 Letter to Shareholders

Dear Shareholders
As you know we started off with a huge debt and a couple of years with huge losses. But times have change for BikeSmith, good times are coming. Despite the crisis 2009 was a good year for BikeSmith, we as a company grew with 33.5%. Nobody grew that fast in 2009. During these hard times we achieved to make a profit. The profit for the first halve of 2009 is €9,066,790. We now see a big grow in our income compared to the €2,562,954 in the first halve of 2008. 2009 will be seen as a turning point for our company. We now see that we keep growing and that it is not a one-time thing. We know that the our debts will be gone in a couple of years , if we keep continuing like this and keep exploring new markets. The reason that we have such a success is, we have cut on prices and we have changed our production. We cut prices for some market research, because a lot of markets are already known, and we changed the production by producing the same amount that is needed. During 2009 we produced 172,157 normal bicycles, 196,750 racing bicycles and 79,139 delivery bicycles. The demands of 2009 are 172,157 for the normal bicycle, 247,283 for racing bicycles and 107,845 for the delivery bicycles. As you can see we missed two demands for the first quarter but we sold everything that we had. We have total sales of 448,046 bicycles. We have 46,649 normal bikes left in our inventory. We have a market share of 12.86% during the first halve of 2009, this is thing that we need to improve. We want to do this by starting of some marketing campaigns, and to build a brand new website to provide the customer with all the information about our products. You can see that we did a lot of good things in the past year, but there all still a lot of things that can be improved. We as managers of BikeSmith would like to thank you for all the effort that you have done for the company, and we would like to continue seeing you in the future. Yours sincerely,

Wishaal Sewambar & Ian Blanken

2.0Financial Summary

2.1 BikeSmith in 2007
We sold in deferent countries during 2007. The countries in which we sold are products were: * The Netherlands
* Australia
* China
* United Kingdom
* Denmark
* Brazil
* France
* Germany
We made a profit in most countries, except Germany (-€121,294), France (-€106,502) and Denmark (-€1,077,048). But we had a net income of €4,312,254 at the end of 2007. This was a huge profit for us compared with the -€9,089,282 loss in 2006.

The €4,312,254 consists out of:
Gross Sales Margin €16,287,584
Total Costs €9,459,593
Operating income€6,827,991
Financial result-€2,515,737
earnings before tax€4,312,254
Earnings after tax€4,312,254
We are not in any financial position to pay out dividends.

2.2BikeSmith in 2008
The only new county in which we sold in 2008 was Japan. The others stayed the same. We only made a loss in Denmark of -€368,347 during 2008, but we had an overall net...
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