Kootenay Bicycles Case Summary

ANGEL INVESTOR Improvements | Unresolved Issues | Negative Aspects | * Cash injection * Opportunity to expand | * Business management
(Accounting) * Human resources (Staffing) * Imitability * Production costs | * Control of firm * Restricts him as manager * Potential job loss in future | Owners Preferences
As Kootenay Bicycles does not have a mission and vision statement, the Company’s implied objectives are entrenched in the owner’s preferences and values. * Building frames is his passion, and he intends to keep bending metal into beautiful bikes and make his company a success.

* His goal is to ensure customer satisfaction as each bike is handcrafted to meet needs of its customers. Also, all frames
Although this process has become faster in recent years as they can effectively make changes without compromising product quality. Another time consuming input is the cutting, handling of tubes and clamping them into jigs requires a lot of expertise.

Inspection time: Moreover, Shackelton insists on personally inspecting each bike, even the Entrée model. Bill Cullen is confident inspection is excessive because they are both experienced, and there is almost no waste/ mistakes in his welds and tubing. Moreover, he believes if the company wishes to produce more bikes, the excessive inspection process would have to be reduced and an extra staff should be added to complete the final assembly of the bikes.

Continuity: In the event of unforeseen circumstances, for example, If Shackelton dies, the business would be dissolved. Also, the business seems to be taking a toll on Bill since he has been working in the metal working industry for over 35 years. His health may be a factor to consider with regards to future operations, and he would need to hire more staff if the company
Bill Cullen, his right hand man and vastly experienced in metal working. He and bill are both willing to work long hours because they enjoy their job and they spend about 30-35 hours to building bikes. Usually they can only at least one bike per week. 2. Mrs. Shackelton, who is part time order taker/bookkeeper but lacks the expertise and managerial skill to manage the business, and cannot effectively create financial statements.
The company currently has three bike models; The Entrée, Dlux, and Ultra models. The material used for the entrée and Dlux offers affordable custom frame of good quality and the Ultra models are made with the best bicycle components. The bikes have extremely light tubing that supports up to 275 pounds; have wider tires than average bikes, and a unique frame geometry that is stable on slippery and unstable riding surfaces. Hence, the bikes can be driven on slippery and unstable riding surfaces.

Moreover, Kootenay Bicycles was able to sell 160 bikes in the past year with the current facility, and can build an additional 50 bikes within the next year. Nevertheless, this would not satisfy the market demand, and Bill believes they can do much more with less inspection time, and someone else handling final assembly of bikes. Also, Kootenay bicycles website is mainly informational, as he does little or no marketing since he believes the bikes sell