Emma Harlow Graham Haynes Neil McCabe Matt Sawler reamTeam Corporation Board of Directors: Reports and Presentations

reamTeam  Medium Price/Medium Production At Induction  Low Price/High Production Strategy future

 High production needed  3 cost developments ◦ Highest Gross Margin/Lowest COGS  Highest SCUs

 High opportunity costs ◦  Upward trend shown ◦ 2018 Anomaly Profit After Tax

 Shift in marketing funds during the introduction of youth bike  Positive results from financing product and branding  Leveraging media sensitivity (Ad/Pricing)  Large product demand created by our marketing strategy

 Failure to accurately plan for production and capacity ◦ Did not produce enough bikes for demand – loss of sales ◦ Wastage too high (35%) ◦ Idle time too low (0%)

Strengths  Highest Industry Product Developments ◦ Cause for an ever-increasing and highest industry profitability (ratios) ◦ Highest Gross Margin (54.2%)  Highest Capacity at SCU (Average of 28,800)  Above High Sensitivity Indexes ◦ Advertising and Pricing for both bikes Weaknesses  Lowest SHV at $15.72  Poor Operations Decisions ◦ 0 Idle Time for 2018; Always Low ◦ 35% Wastage for 2018; Always High ◦ Lowest Quality Rating of 0.58 (Average 0.76)  Lowest Cash Holdings in World ◦ Future Developments may require financing

Opportunities  Unmet demand in both markets  10,000-20,000 lost sales  Price Drop Possible (Developments)  Increased demand, more sales  Market Space Still Available  Youth and Mountain segments Threats  Market share could be stolen  Youth Bike Market Entries  JJRG - 50,000 units sold  Developments made to increase Market Share  Niche Market unavailable to strategy

 Sell 15,000 additional youth bikes  Operations overhaul – get wastage at or below 25%  Keep expenses manageable and sales high – maintain a 50% gross margin  Sell 5,000 additional mountain bikes

reamTeam Corporation