President of Financial PerspectiveAmanda Forgione President of Customer PerspectiveMeghan Ryan President of Internal ProcessesKeith Bursey President of Learning and GrowthJanine Tomala CEO of Extreme BikesChris Leasor

Financial Goals Achieve Gross Margin of 40% Achieve Gross Margin of 40% Increase Shareholder Value by 10% Annually Increase Shareholder Value by 10% Annually Increase Sales Revenue Increase Sales Revenue Lower Costs of Goods Sold Lower Costs of Goods Sold Increase Net Income Increase Net Income

Hypothesis Decrease cost of goods sold in order to achieve our financial goals. Decrease cost of goods sold in order to achieve our financial goals. By decreasing our advertising we thought we could cut the cost of goods sold and achieve our goals. By decreasing our advertising we thought we could cut the cost of goods sold and achieve our goals.

Shareholder value increased from by 53.3% $5.09-$3.32 x 100 = 53.3% $3.32 Increase caused by the effects we made on our revenue growth Targeting our net profit and cost of goods sold.

 Gross Margin increased as we decreased our cost of goods sold and also as we tried to increase our sales. $1,789,600 X 100 = 31.2% $5,725,740 $3,468,680 X 100 = 43.1% $8,037,450 $3,197,560 X 100 = 42.8% $7,458,550 $3,019,551 X 100 = 43.2% $6,982,101 Period of Year Gross Margin Gross Margin % 2008$1,789, % 2009$3,468, % 2010$3,197, % 2011$3,019, %

Period Year ValuePercentage2008$5,725,740(29.5)% 2009$8,037, % 2010$7,458,550(7)% 2011$6,982,101(6.3)% $6,982,101-$5, 725,740 X 100 = 21.9% $5, 725,740  Our sales revenue growth increased from by 21.%  Increase in revenue growth due to our decrease in cost per goods sold

Road Bike Period Year Advertising Expenditure 2008$870, $525, $525, $525,000 $525,000-$870,000 X 100 = (39.6)% $870,000 Period Year Advertising Expenditure 2008$400, $270, $270, $270,000 $270,000-$400,000 X 100 = (32.5) % $400,000 Mountain Bike

Period Year Net Income 2008 ($1,512,790) 2009 $931, $533, $140,777 $140,777-($1,512,790) X 100 = 90.6% ($1,512,790)  By decreasing our advertising expenditure for both bikes we created a greater gross margin that lead to a greater net income

 Decreased by 1.29% from  Improve efficiency to improve employee performance Production and Efficiency: YearValue X 100 = (1.29%).77

 Increased by 3.65% from  Have high employee skills X 100 = 3.65%.82 Quality Index: YearValue

*Creating a Better Quality Awareness - We only increased the awareness index by a small amount of 3.22%. We should have raised in more. YearPercentage % % % % Calculations: X 100 = 3.32% 9.33

* For the Mountain Bike segment are awareness index decreased by (27.5%) YearPercentage * This is due to our cuts in advertising, we did this to increase our gross margin Calculations 10.8 – 14.9 X 100 = (27.5%) 14.9

Weeks in Demand Mountain Bikes Road Bikes Our Weeks in Demand is too high, due to lack of sales *Delivery Index for both the Mountain Bike segment and the Road Bike segment stayed constant at 1.00.

Internal Processes Period YearValue Road Bike Segment Style and Design Period YearValue Mountain Bike Segment Style and Design

Conclusion We achieved our gross margin goal by achieving 43.2%. We achieved our gross margin goal by achieving 43.2%. We increased our shareholder value by 53% over a four year period. We increased our shareholder value by 53% over a four year period. Our costs of goods sold decreased. Our costs of goods sold decreased. Net profit was significantly increased over the last 4 years. Net profit was significantly increased over the last 4 years.