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RXM1: Business Performance Report

XXX Business Performance Report Student ID: 00000000 Date: 09/14/2021

C1. Business Overview XXX is an emerging business that specialize in the manufacturing and sales of carbon fiber bikes using 3D printing. With a sales outlet located in New York City, we provide customized bikes that cater to three distinct consumer demographics. We focused our manufacturing to three segments of the market, which were recreation, mountain, and speed. Kruse Kontrol is our first model, which caters to the recreational bike rider. Our second is the Hightop, which is manufactured with our mountain riders in mind. Lastly is the Hummingbird, designed for those with a need for speed. Our products are produced with 3D printers. The use of 3D printers allows us to be free of inventory, as products are custom made. In Quarter 1, we had a fixed capacity of two 3D printers. This capacity allowed to produce 16 units/day. While New York’s demand for 3D bikes were high, this was a new market for us. Therefore, deciding upon a conservative start, with sales determining the future increase, was implemented. XXX manufacturing approach was solely based on demand. The projected demand for New York was high for each market segment, which prompted us to produce all three.

C2. Financial Analysis Pricing (including rebates) Our product pricing was strategic and competitive, while remaining within the price range each consumer was willing to pay. Quarter 2 pricing were set slightly higher than the “willing to pay” threshold, to offset production costs. With slightly higher pricing, rebates were offered to reduce the price withing range of what the customer was willing to spend. By Quarter 3, we were operating in the black. This led to the lowering of prices, with rebates, to bring the price to what the customer was willing to pay. The decision to do so resulted in a gross profit almost five times greater than Quarter 1.

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RXM1: Business Performance ReportBusiness Performance Report Template

Income Statement Report Item

Quarter 1

Quarter 2

Quarter 3

Gross Profit Revenues - Rebates - Cost of Goods Sold = Gross Profit

0 0 0 0

424,900 14,200 250,819 159,881

970,840 34,400 426,239 510,201

Hiring Sales and Service People Our main goal was to provide customer satisfaction. Accomplishing this would increase our referral sales tremendously. This led to the decision of hiring staff with our highest concentration being in the service department. In Quarter 2, we hired a total of 6 sales and service people. Three designated to our service area, and one to each market segment. This resulted in a minor loss of sales due to production. This led to the decision to hire one additional worker. The addition was placed in our Speed segment, which was our highest grossing product. These changes increased our Sales Force expense, from Quarter 2 to 3, by $7,804.

Income Statement Report Item

Quarter 1

Quarter 2

Quarter 3

Expenses Research and Development + Advertising + Internet Marketing Expenses + Sales Force Expense + Store Expense + Marketing Research + Shipping + Excess Capacity Cost + Depreciation = Total Expenses Operating Profit

90,000 0 0 0 200,000 0 0 0 0 290,000 -290,000

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0 18,500 0 31,171 62,000 20,000 4,516 0 20,000 156,187 3,694

30,000 20,500 3,000 38,975 62,000 20,000 10,328 0 20,000 204,803 305,399

RXM1: Business Performance ReportBusiness Performance Report Template

Use of Loans and Cash The starting goal was to get established within the market without acquiring any additional debt. Because of this, we chose to utilize cash only and not loans. By not acquiring the additional debt, we were able to direct money into other areas of the business. Lowering our debt-to-income ratio, increased our common stock and retained earnings from Quarter 1 to Quarter 3.

Balance Sheet Report Item Cash + 3 Month Certificate of Deposit + Net Fixed Assets = Total Conventional Bank Loan + Emergency Loan + Common Stock + Retained Earnings = Total

Quarter 1 Current Assets 730,000 0 Long Term Assets 480,000 1,210,000 Debt 0 0 Equity 1,500,000 -290,000 1,210,000

Quarter 2

Quarter 3

1,253,694 0

1,831,455 0

460,000 1,713,694

680,000 2,511,455

0 0

0 0

2,000,000 -286,306 1,713,694

2,500,000 11,455 2,511,455

C3. Ethical Decision-Making Rights and well-being of workers Our ethical decision making focused on the well-being of our employees. This was a stepby-step process, beginning in Quarter 2. We initially kept with the industry average for salary, health benefits, and vacation. However, we chose to lead the industry in pension, at 2%. This resulted in Signature Rides being recognized as one of the best places to work. At each quarter, we increased a specific area of compensation, that put us ahead of the industry. Paying close attention to provide ample vacation and personal time, to prevent burnout. We also hired local employees, placing focus on diversity within the workplace. A decentralized organizational structure allowed every employee to take part in all decisions pertaining to design, manufacturing, and sales.

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