1. 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

2. 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

3. 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.

4. Shareholder value increased from 2008-2011 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.

5.  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$1,789,60031.2% 2009$3,468,68043.1% 2010$3,197,56042.8% 2011$3,019,55143.2%

6. Period Year ValuePercentage2008$5,725,740(29.5)% 2009$8,037,45040.3% 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 2008-2011 by 21.%  Increase in revenue growth due to our decrease in cost per goods sold

7. Road Bike Period Year Advertising Expenditure 2008$870,000 2009$525,000 2010$525,000 2011$525,000 $525,000-$870,000 X 100 = (39.6)% $870,000 Period Year Advertising Expenditure 2008$400,000 2009$270,000 2010$270,000 2011$270,000 $270,000-$400,000 X 100 = (32.5) % $400,000 Mountain Bike

8. Period Year Net Income 2008 ($1,512,790) 2009 $931,554 2010 $533,512 2011 $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

9.  Decreased by 1.29% from 2008-2011  Improve efficiency to improve employee performance Production and Efficiency: YearValue 2008.77 2009.70 2010.73 2011.76.76 -.77 X 100 = (1.29%).77

10.  Increased by 3.65% from 2008-2011  Have high employee skills.85-.82 X 100 = 3.65%.82 Quality Index: YearValue 2008.82 2009.80 2010.83 2011.85

11. *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 2008 9.33% 2009 9.61% 2010 9.69% 2011 9.64% Calculations: 9.64 - 9.33 X 100 = 3.32% 9.33

12. * For the Mountain Bike segment are awareness index decreased by (27.5%) YearPercentage 2008 14.96 2009 12.15 2010 11.30 2011 10.82 * 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

13. Weeks in Demand 2008 2009 2010 2011 Mountain Bikes 0 8 22 38 Road Bikes 20 12 11 20 -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.

14. Internal Processes 200818.74 200918.74 201018.74 201118.74 Period YearValue Road Bike Segment Style and Design200844.00200944.00 201044.00 201144.00 Period YearValue Mountain Bike Segment Style and Design

15. 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.