Will Calvert Emily Ewart Nick Mancuso Kyra Stevenson Final Results and Analytical Overview

Overview of DECK Industries 2017 financial results include: Sales of $29,205,632 Costs of Goods Sold at $11,143,571 Shareholder Value of $78.78 Profits of over $6,500,000 Dividends per Share of $3.10 Earnings per Share of $9.66

Sales Volume Sales (Mountain) Below industry average of 29,346 in sales Competitors Mission Cycle generated 31,814 in sales Sales volume decreased by 12,89% over the past year Sales (Youth) Above industry average of 63,849 Mission Cycle generated 66,700 in sales Highest sales volume in the industry

Sales Volume FIRMSales (Mountain) 2017%2016%2015 DECK Industries27, %31, %26,000 Mission Cycle31, %30, %24,000 The Daily Grind Ltd.37, %29, %23,000 Vandelay Industries36, %36, %32,772 Firm 621, %22, %20,088 Firm 721, %22, %20,088 Average29, %28, %24,325 FIRMSales (Youth) 2017%2016%2015 DECK Industries83, %86, %89,700 Mission Cycle66, %68, %77,000 Vandelay Industries41, %29,000 Average63,84912%61, % 83,350

Marketing Strategy Awareness Declined by 13.04% in mountain bikes and 2.94% in youth bikes Awareness in mountain bikes is below both the industry average and competitor Mission Cycle Above industry target of 0.30 in youth bikes Public Relations Low PR, below the target and industry average Competitor Mission Cycle also has low PR rating Distribution Reduced distribution by 35.14% in mountain bikes and 24.62% in youth bikes Below target rating of 0.50 and below competitors Mission Cycle at 0.38 in the mountain bike industry Approaches target rating of 0.50 in youth sector Below Mission Cycle at a rating of 0.62

Marketing Strategy (Awareness) FIRMAwareness Rating (Mountain) 2017%2016%2015Target DECK Industries % %0.22 Mission Cycle % %0.23 The Daily Grind Ltd % %0.29 Vandelay Industries % %0.25 Firm % %0.16 Firm % %0.16 Average % % FIRMAwareness Rating (Youth) 2017%2016%2015Target DECK Industries % %0.29 Mission Cycle % %0.28 Vandelay Industries %0.11 Average0.3044% %

Marketing Strategy (Distribution) FIRMDistribution Rating (Mountain) 2017%2016%2015Target DECK Industries %0.3723%0.3 Mission Cycle % %0.37 The Daily Grind Ltd %0.3-6%0.32 Vandelay Industries %0.4820%0.4 Firm %0.080%0.08 Firm %0.080%0.08 Average % % FIRMDistribution Rating (Youth) 2017%2016%2015Target DECK Industries % %0.56 Mission Cycle % %0.66 Vandelay Industries %0.34 Average % %

Operation Results (COGS) FIRMCosts of Goods Sold % 2017%2016%2015 DECK Industries38%-21%48%-2%49% Pistol Cycle39%-20%49%0%49% Mission Cycle57%0%57%-5%60% The Daily Grind Ltd.64%-14%74%1%73% Vandelay Industries42%-24%55%0%55% Firm 651%-2%52%0%52% Firm 751%-2%52%0%52% Average49%-12%55%-1%56% Costs of Goods Sold as a Percentage of Sales Decreased by 21% Lowest in the industry in 2017 Below rival Mission Cycle at 57%

FIRMCapacity (SCU) 2017%2016%2015Limit DECK Industries80, %84, %69,984 Pistol Cycle9, %9, %9,997 Mission Cycle39, %48, %40,000 The Daily Grind Ltd.33, %40, %24,500 Vandelay Industries48, %47, %26,500 Firm 620, %20, %20,000 Firm 720, %20, %20,000 Average35, %38, %30,14084,000 Standard Capacity Units High SCU at 80,000 units Above competitors Mission Cycle at 39,000 Above industry average of 35,745 Operation Results (SCU)

Operation Results (Wastage) FIRMWastage 2017%2016%2015Target DECK Industries48%-4.00%50%2.04%49% Pistol Cycle9%-10.00%10%-33.33%15% Mission Cycle12%-36.84%19%0.00%19% The Daily Grind Ltd.26%-21.21%33%17.86%28% Vandelay Industries24%-22.58%31%63.16%19% Firm 617%0.00%17%0.00%17% Firm 717%0.00%17%0.00%17% Average22%-14%25%7%23%1%-10% Wastage Extremely high at 48% Above industry average of 22% Above target rating of 0-10%

Operation Results Quality Rating DECK Industries and Mission Cycle both are below target of 0.75 Quality rating of 0.52 Idle Time In the target range of 0-10% 3% idle time Inventory Decreased finished good warehousing costs 2015 and 2016 zero inventory in mountain bikes mountain bikes, 16,924 youth bikes

SWOT Analysis Strengths Maintaining a low cost of goods sold as a percentage of sales Cost effectiveness High levels of standard capacity units Weaknesses Inaccurate management of demand forecasting Low awareness levels Production inefficiency

SWOT Analysis Opportunities Tap into new markets Increase market share Capitalize on sales Threats Youth bike launch byVandelay Industries Cluttering of competitors Similar pricing strategies Competitors in all three markets

SWOT Analysis Positioning map:

Recommendations for the Future Financial  DECK Industries plans to increase profits by 40% in 2018 Marketing  DECK Industries wants to achieve an increase in sales volume by 8% in 2018 Operations  DECK Industries plans to increase efficiency expenditure from 600,000 to 800,000 in 2018