• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15
  16. 16
  17. 17
  18. 18
  19. 19
  20. 20

Financial And Other Problems Faced By Cyclermate Bicycle Manufacturers.

Extracts from this document...


EXECUTIVE SUMMARY Cyclermate is bicycle manufacturing company established in late 1988 in United Kingdom. The firm was set up by Lewis Llewellyn and Dai Armstrong, the two close friends in a local cycle touring club. As the prospects for continued local employment were poor, they decided to use their savings to set up a bicycle manufacturing business – an obvious choice, given their shared interest, and combined expertise. Business/Product The product that the company selected was a “traditional” upright cycle, following a design typical of the 1940’s and 1950’s. They believed that there would be a strong “niche” market for such a product, given the upsurge in interest in cycling, and increasing consumer interest in “retro” styles. The market The company defines their market as traditional bicycle. The total market size was approximately £1.28b in 2009 and is expected to grow by 28% in 2010. Cyclermate’s total revenue was £1.6 m – a very small amount in 2009. However, the product they selected was a “traditional” upright cycle, following a design typical of the 1940’s and 1950’s which created a strong niche market for this such product and would be given the upsurge in interest in cycling and the increasing consumer interest in “retro” styles. Competition Cyclermate compete directly with other bicycle manufacturing company in the UK like Carrera, Charter Lea.. and alternatives to their product include electric bicycle. The high quality hand- made bikes brought them good reputation and maintained high sales though they did not advertise much. Risk/Opportunity The greatest risks associated with company today are facing is their bad credits toward the bank. In 2010, the business is in trouble, the demand keeps going down despite the price reduction. The biggest recognized opportunities for the company include the product they selected was a “traditional” upright cycle, following a design typical of the 1940’s and 1950’s which created a strong niche market for this such product and there would be a strong growth in their business because of the decrease in the number of people using cars in UK. ...read more.


The opportunity created from the meeting between Amstrong and Owen helps him to have some expertise in new technologies that might be an interesting way to develop product. The upcoming changes in human resource, followed by Mr Jones who interjected that the quality problems could probably all be solved if the directors would allow the employment of more staffs in the factory and the plans for future directions, including development of the product range, and the introduction of new ways of working, new materials and possible outsourcing of manufacture parts of the product manufacture point out the new development of their business. * Threats It can be seen that the biggest trouble Cyclermate is facing is their bad credits toward the bank. In 2010, the business is in trouble, the demand keeps going down despite the price reduction. This significant decrease in sales together with the increase in costs may last for the coming year. Therefore, Cyclermate?s overdraft is now becoming the major concern of the bank manager. So far, it is not easy for them to borrow money and this cause a lot of problem especially when they really need money to save their business. Besides, they also need to deal with their sales. Their customers demand high quality products and to meet this, they have to upgrade their producing system which will cost a lot. But, as the fact that they almost depend on their world-of-mouth reputation so it may be completely strange and challenging for them at first. 2.4. SOLUTIONS FOR CYLERMATE?S SITUATION 1. MANUFACTURING PROCEDURE AND IMPROVEMENTS Improper workforce in manufacturing Unreasonable workforce division is one of the most serious problems of Cyclermate Ltd. Besides, lack of experienced employees and the aging workforce are worrying the production process and raising a big question for a more effective training system. First of all, the inappropriate division of duties obviously had made such a burden on many workers. ...read more.


Cyclermate will use newspapers, internet and radio to promote their product across the world. Company is planning to launch their website which will have all the detail about them and their product. Cyclermate will also be trading on line, and it will have all the detail about their product and prices. 1. CONCLUSION To improve the quality is should adopt proper methods of quality management which will possibly help in reducing the costs and increase the quality of the products. The products with low quality should not be brought in the market as once the reputation of the company goes down due to poor quality issues its very difficult for it to get over it. Cyclermate should appoint right person at the right position. As of now management is also involving in the production of the goods as a result of which they are losing focus on the managerial activities. Financial difficulties at the moment can be just resolved with immediate cash which can be only done through mortgaging assets and selling the lying stock in the warehouse. To be up to the standards of the competitors the cyclermate needs to produce cheap products at higher quality and for that it needs to revise its budget and take necessary cost cutting measures and quality management measures. Costs should be allocated appropriately, i.e. there should be proper budgeting. The company should introduce batch manufacturing of products, i.e. relating a group of components at a workstation before moving the group to the next step in production. Overall I think that Cyclermate will have a better future if they operate their business in slightly different ways. Cyclermate products were famous for its quality and price, if the company still provide what the consumer wants than it would be no harm to the company. But there few changes needs to be changed and once the new rules and regulation apply into the business than it would be a great opportunity for Cyclermate to operate their services. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. Balfour Beatty. The purpose of this report is to identify and select a UK ...

    A Balfour Beatty company was also registered in Toronto to undertake marine projects in the Great Lakes in 1954. 1957 Nuclear power was an exciting new challenge and in 1957 work began on a power station at Berkeley.

  2. Investigation Recruitment and selection process.

    and experiences you will look for in the recruitment and selection process. The criteria you decided should relate directly to the duties of the job description and contain the minimum requirements essential to do the job effectively. These criteria should then form the basis of the advert in order to

  1. Leadership styles and different communication styles.

    The vice president reports to the head of the department who manages on or more Vice presidents. The manger communicates and relays all information he gets from his boss to the employees who report to him directly. If the information is coming from the senior vice president it goes to

  2. Challenges faced by management at U-Fone Pakistan.

    human talent in some professional areas and in diverse managerial disciplines due to the beginning of the retirement with no enough replacements of the baby boomers? workforce; economical growth and resurgence of energy market firms due to record crude oil prices has motivated a fierce competence to hire, train and retain the already scarce talent available in the job market.

  1. The purpose of writing this report is to find a solution for Trump Entertainment ...

    They must give half of the ownership of the casino to bondholders in exchange for lower interest payments. In March 1992, the organization had to file for Chapter 11 for Trump Plaza Hotel & Casino and Trump?s Castle, which is now known as Trump Marina Hotel Casino.

  2. Enterprise rent-a-car total quality management

    Determining activities and steps of the process. 3. Arranging the order for the process. 4. Drawing out the diagram. The symbols used in the drawing process are: 1. Oval ? showing the start and end of a process. 2.

  1. IT and the Workplace. The problems faced by the Avtovaz company are said ...

    Three main areas will be examined here in reference to the issue in question. The way in which this system would have an impact on the productivity and performance of the organisation would also be examined and then the functionality of the system, its advantages, its disadvantages, and the effect that it has on the organisation is examined as well.

  2. This Report gathers data reviews analyzes and highlights the strengths weaknesses threats and opportunities ...

    2 India?s Export of Leather & Leather Products to Spain Product 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Finished Leather 38.76 35.94 30.31 22.54 22.02 28.22 23.46 Footwear 20.11 38.06 46.86 63.70 64.57 76.69 91.86 Leather Garments 25.55 45.33 54.92 60.21 42.95 47.69 48.47 Leather Goods & Accessories 24.37

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work