* Our quality index objective was

1
Extreme Bikes
President of Financial Perspective Amanda
Forgione President of Customer Perspective Megha
n Ryan President of Internal Processes Keith
Bursey President of Learning and Growth Janine
Tomala CEO of Extreme Bikes Chris Leasor
2
Financial Goals

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

3
Hypothesis

• 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.

4
Shareholder Value

• 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
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 1,789,600 31.2
2009 3,468,680 43.1
2010 3,197,560 42.8
2011 3,019,551 43.2

• Gross Margin increased as we decreased our cost
  of goods sold and also as we tried to increase
  our sales.

6
Sales Revenue
Period Year Value Percentage
2008 5,725,740 (29.5)
2009 8,037,450 40.3
2010 7,458,550 (7)
2011 6,982,101 (6.3)

• Our sales revenue growth increased from
  2008-2011 by 21.
• Increase in revenue growth due to our decrease
  in cost per goods sold

6,982,101-5, 725,740 X 100 21.9 5, 725,740
7

Advertising
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
Mountain Bike
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
8
Net Income
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
Growth and Learning Perspective

• Decreased by 1.29 from 2008-2011
• Improve efficiency to improve employee performance

Production and Efficiency Year Value 2008 .77 200
9 .70 2010 .73 2011 .76
.76 - .77 X 100 (1.29) .77
10
Growth and Learning Perspective Cont ...

• Increased by 3.65 from 2008-2011
• Have high employee skills

.85-.82 X 100 3.65 .82
Quality Index Year Value 2008 .82 2009 .80 2010 .
83 2011 .85
11
Customer Perspective
Road Bike Segment
Creating a Better Quality Awareness - We only
increased the awareness index by a small amount
of 3.22. We should have raised in more.
Year Percentage 2008 9.33 2009
9.61 2010 9.69 2011 9.64
Calculations 9.64 - 9.33 X 100 3.32 9.33
12
Customer Perspective Cont...
Mountain Bike Segment
For the Mountain Bike segment are awareness
index decreased by (27.5)
This is due to our cuts in advertising, we did
this to increase our gross margin
Year Percentage 2008 14.96 2009
12.15 2010 11.30 2011 10.82
Calculations 10.8 14.9 X 100 (27.5)
14.9
13
Customer Perspective Cont...
Delivery Index for both the Mountain Bike
segment and the Road Bike segment stayed constant
at 1.00.
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
14
Internal Processes
Road Bike Segment Style and Design
Mountain Bike Segment Style and Design
Period Year Value
Period Year Value
2008 18.74
2009 18.74
2010 18.74
2011 18.74
2008 44.00
2009 44.00
2010 44.00
2011 44.00
15
Conclusion

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