Determine how Bush Bikes can continuously increase their shareholder value (SHV) against the competitor, Mountain Top Bikes.

Bush Bikes Financial Reports- How can Bush Bikes increase revenue and decrease Lost Sales in future years?

Based on the following Market Information, what conditions should Bush Bikes take into consideration to stay ahead of the competition?

Industry Benchmark Report 2021 Spring l: MGT 795 (Parrott) - Deasiray Bush - Period 2019 Bush Bikes MountainTop Cycles Owned By Shareholder Value (SHV) Cumulative Change in SHV $13.16 (6%) $12.32 (12%) Share Price Dividend Per Share $13.16 $0.00 $12.32 $0.00 Retail Sales Wholesale Sales Gross Margin Profit After Tax Economic Value Created $28,077,200 $14,686,022 $6,666,685 $952,781 $430,703 $30,926,000 $ 16,077,864 $5,516,465 $289,409 ($236,797) Number of Shares Earnings per Share Investor PR Index 2,000,000 $0.476 0.98 2,000,000 $0.145 1.00 Plant Current Liabilities Long-term Liabilities Net Assets / Shareholder Funds D/E Ratio (book equity) Market Capitalization Total Shareholder Value Total Economic Value Created $4,000,000 $408,335 $1,800,000 $6,494,629 0.28 $26,321, 102 $26,321,102 $2,686,555 $5,200,000 $124,032 $1,800,000 $5,831,257 0.31 $24,645,330 $24,645,330 $2,019,055 Income Statement History 2021 Spring : MGT 795 (Parrott) - Deasiray Bush - Bush Bikes - Period 2019 2019 2018 $14,686,022 $8,019,337 Sales Revenue Less: Cost of Goods Sold GROSS MARGIN $14,206,536 $7,885,807 $6,320,729 $6,666,685 Selling & Distribution Expenses Salaries Brand Advertising Product Advertising Product PR Distribution Channel Support Warranty Claims Product Development Projects Sales Of Obsolete Stock (income) Cost Of Obsolete Goods Sold $200,000 $100,000 $2,000,000 $2,000,000 $201,410 $184,823 SO (SO) SO $200,000 $100,000 $800,000 $500,000 $197,568 $184,522 SO (50) SO $4,686,233 $1,982,091 Administration Expenses Salaries Finished Goods Warehousing Investor PR Legal Fees Miscellaneous Expense Unallocated Factory Overhead $300,000 $13,650 $300,000 SO SO SO $300,000 $63,650 $300,000 SO SO SO $613,650 $663,650 Financial Expenses Interest on Overdraft Interest on Debt to Owning Company Interest on Long Term Debt Debt to Owned Company Written Off Takeover bids premiums and expenses SO SO $144,000 SO SO SO SO $144,000 SO SO 88888 $144,000 $144,000 TOTAL OTHER EXPENSES $5,443,883 $2,789,741 $100,223 SO SO SO Other Income Interest on Cash in Bank $ 138,314 Interest on Loans to Owned Companies SO Debt o Owning Company Written of SO Miscellaneous Cash Windfall SO TOTAL OTHER INCOME $138,314 Profit Before Taxation $1,361,116 Less: Income Tax $408,335 Het ps://websit.smartins.com:628305526/?action applink&tag=Ad Finance $100,223 $3,631,212 $1,089,363 1/15/2021 Plus: Tax Credit Profit After Taxation Siratsins Mikaskes Advanced Single- $0 $0 $952,781 $2,541,848 SO SO Dividends received from Owned Companies NET INCOME $952,781 $2,541,848 Balance Sheet History 2021 Spring I: MGT 795 (Parrott) - De asiray Bush - Bush Bikes - Period 2019 2019 2018 2,000,000 Equity Number of Shares Outstanding Share Capital Retained Earnings TOTAL EQUITY These funds are represented by: 2,000,000 $2,000,000 $3,541,848 $2,000,000 $4,494,629 $6,494,629 $5,541,848 Current Assets Cash Raw Materials Inventory Finished Goods Inventory $7,347,163 $75,801 SO $6,622,565 $71,997 $136,650 $7,422,964 $6,831,212 Non Current Assets Plant Less: Accumulated Depreciation $4,000,000 $2,720,000 $4,000,000 $2,400,000 $1,600,000 $1,280,000 Investments Equity in Owned Firms Loans To Owned Firms TOTAL ASSETS $0 $0 $0 $0 $8,702,964 $8,431,212 Current Liabilities Overdraft Company Tax To Pay SO $408,335 $0 $1,089,363 $408,335 $1,089,363 Non Current Liabilities Long Term Debt Loans From Owner $1,800,000 SO $1,800,000 SO $1,800,000 $1,800,000 TOTAL LIABILITIES TOTAL NET ASSETS $2,208,335 $6,494,629 $2,889,363 $5,541,848 Market Information 2021 Spring l: MGT 795 (Parrott) - Deasiray Bush - Period 2019 Segment Size and Price Range The table below outlines the estimated market size (total retail sales value) of the various market segments. Segment Actual Demand (2019) Forecast Demand (2020)* Minimum Retail Price Adventurers 43,482 units 49,000 units $1,000 Leisure 42,000 units $100 Maximum Retail Price $3,000 $700 Recommended $1,700 $425 Notes: 1. The Forecast Demand is an ESTIMATE of the likely size of each market segment for next year. 2. The Retail Price Range indicates the EXTREMES. You are advised to stay near the middle of the range. Customer Preferences by Market Segment Customer responsiveness to product attributes for each market segment (low, medium or high). Segment Price Advertising PR Quality Distribution Product Specs Adventurers Med Med Med High Med Med Leisure Med High Low Low Med Low Product Dimension Preferences The estimated preferences for product dimensions in each segment is given below. Attaining index values close to or exceeding these targets is important to maximize sales in these segments. This table represents a reference point against which to measure how successfully positioned your product is in each segment. Refer to the 'Market Summary Report' to observe your current product performance under all these dimensions. Check competing products also. Segment Retail Price Awareness PR Quality Distribution Adventurers $1,700 0.40 0.35 0.85 0.55 Leisure $425 0.50 0.15 0.50 0.50 Product Specs 0.90 0.75 Media Channels Media Viewing Habits The proportion of each market segment that can be reached through the different media channels. Each row will add to more than 100% as people watch multiple media channels. Segment TV Inte met Magazines Adventurers 40% 30% 50% Leisure 60% 30% 20% Max Advertising $5,000,000 $5,000,000 $5,000,000 Max PR $5,000,000 $5,000,000 $5,000,000 Industry Benchmark Report 2021 Spring l: MGT 795 (Parrott) - Deasiray Bush - Period 2019 Bush Bikes MountainTop Cycles Owned By Shareholder Value (SHV) Cumulative Change in SHV $13.16 (6%) $12.32 (12%) Share Price Dividend Per Share $13.16 $0.00 $12.32 $0.00 Retail Sales Wholesale Sales Gross Margin Profit After Tax Economic Value Created $28,077,200 $14,686,022 $6,666,685 $952,781 $430,703 $30,926,000 $ 16,077,864 $5,516,465 $289,409 ($236,797) Number of Shares Earnings per Share Investor PR Index 2,000,000 $0.476 0.98 2,000,000 $0.145 1.00 Plant Current Liabilities Long-term Liabilities Net Assets / Shareholder Funds D/E Ratio (book equity) Market Capitalization Total Shareholder Value Total Economic Value Created $4,000,000 $408,335 $1,800,000 $6,494,629 0.28 $26,321, 102 $26,321,102 $2,686,555 $5,200,000 $124,032 $1,800,000 $5,831,257 0.31 $24,645,330 $24,645,330 $2,019,055 Income Statement History 2021 Spring : MGT 795 (Parrott) - Deasiray Bush - Bush Bikes - Period 2019 2019 2018 $14,686,022 $8,019,337 Sales Revenue Less: Cost of Goods Sold GROSS MARGIN $14,206,536 $7,885,807 $6,320,729 $6,666,685 Selling & Distribution Expenses Salaries Brand Advertising Product Advertising Product PR Distribution Channel Support Warranty Claims Product Development Projects Sales Of Obsolete Stock (income) Cost Of Obsolete Goods Sold $200,000 $100,000 $2,000,000 $2,000,000 $201,410 $184,823 SO (SO) SO $200,000 $100,000 $800,000 $500,000 $197,568 $184,522 SO (50) SO $4,686,233 $1,982,091 Administration Expenses Salaries Finished Goods Warehousing Investor PR Legal Fees Miscellaneous Expense Unallocated Factory Overhead $300,000 $13,650 $300,000 SO SO SO $300,000 $63,650 $300,000 SO SO SO $613,650 $663,650 Financial Expenses Interest on Overdraft Interest on Debt to Owning Company Interest on Long Term Debt Debt to Owned Company Written Off Takeover bids premiums and expenses SO SO $144,000 SO SO SO SO $144,000 SO SO 88888 $144,000 $144,000 TOTAL OTHER EXPENSES $5,443,883 $2,789,741 $100,223 SO SO SO Other Income Interest on Cash in Bank $ 138,314 Interest on Loans to Owned Companies SO Debt o Owning Company Written of SO Miscellaneous Cash Windfall SO TOTAL OTHER INCOME $138,314 Profit Before Taxation $1,361,116 Less: Income Tax $408,335 Het ps://websit.smartins.com:628305526/?action applink&tag=Ad Finance $100,223 $3,631,212 $1,089,363 1/15/2021 Plus: Tax Credit Profit After Taxation Siratsins Mikaskes Advanced Single- $0 $0 $952,781 $2,541,848 SO SO Dividends received from Owned Companies NET INCOME $952,781 $2,541,848 Balance Sheet History 2021 Spring I: MGT 795 (Parrott) - De asiray Bush - Bush Bikes - Period 2019 2019 2018 2,000,000 Equity Number of Shares Outstanding Share Capital Retained Earnings TOTAL EQUITY These funds are represented by: 2,000,000 $2,000,000 $3,541,848 $2,000,000 $4,494,629 $6,494,629 $5,541,848 Current Assets Cash Raw Materials Inventory Finished Goods Inventory $7,347,163 $75,801 SO $6,622,565 $71,997 $136,650 $7,422,964 $6,831,212 Non Current Assets Plant Less: Accumulated Depreciation $4,000,000 $2,720,000 $4,000,000 $2,400,000 $1,600,000 $1,280,000 Investments Equity in Owned Firms Loans To Owned Firms TOTAL ASSETS $0 $0 $0 $0 $8,702,964 $8,431,212 Current Liabilities Overdraft Company Tax To Pay SO $408,335 $0 $1,089,363 $408,335 $1,089,363 Non Current Liabilities Long Term Debt Loans From Owner $1,800,000 SO $1,800,000 SO $1,800,000 $1,800,000 TOTAL LIABILITIES TOTAL NET ASSETS $2,208,335 $6,494,629 $2,889,363 $5,541,848 Market Information 2021 Spring l: MGT 795 (Parrott) - Deasiray Bush - Period 2019 Segment Size and Price Range The table below outlines the estimated market size (total retail sales value) of the various market segments. Segment Actual Demand (2019) Forecast Demand (2020)* Minimum Retail Price Adventurers 43,482 units 49,000 units $1,000 Leisure 42,000 units $100 Maximum Retail Price $3,000 $700 Recommended $1,700 $425 Notes: 1. The Forecast Demand is an ESTIMATE of the likely size of each market segment for next year. 2. The Retail Price Range indicates the EXTREMES. You are advised to stay near the middle of the range. Customer Preferences by Market Segment Customer responsiveness to product attributes for each market segment (low, medium or high). Segment Price Advertising PR Quality Distribution Product Specs Adventurers Med Med Med High Med Med Leisure Med High Low Low Med Low Product Dimension Preferences The estimated preferences for product dimensions in each segment is given below. Attaining index values close to or exceeding these targets is important to maximize sales in these segments. This table represents a reference point against which to measure how successfully positioned your product is in each segment. Refer to the 'Market Summary Report' to observe your current product performance under all these dimensions. Check competing products also. Segment Retail Price Awareness PR Quality Distribution Adventurers $1,700 0.40 0.35 0.85 0.55 Leisure $425 0.50 0.15 0.50 0.50 Product Specs 0.90 0.75 Media Channels Media Viewing Habits The proportion of each market segment that can be reached through the different media channels. Each row will add to more than 100% as people watch multiple media channels. Segment TV Inte met Magazines Adventurers 40% 30% 50% Leisure 60% 30% 20% Max Advertising $5,000,000 $5,000,000 $5,000,000 Max PR $5,000,000 $5,000,000 $5,000,000