How Much Year Does Mike’s Bikes Simulation Run Up To?

The MikesBikes Single-Player is a practice version where your challenge is to achieve the highest shareholder value that you can within

10 years

(decision periods). You will then move onto the MikesBikes Multi- Player to compete against other teams within your course.

What is the goal of the Mikes Bikes simulation?

Foundations of Business Simulation. MikesBikes Introduction features a unique structure which

allows students to gradually build confidence

. This is achieved by progressively giving students control over their own company. They will initially determine the price and marketing mix for their only product.

What new decision areas are available from Year 3 of the simulation?

Year 3 New Decisions:

The addition of Operations and Finance (debt)

Year 4 New Decisions: The addition of Product Development, Launch New Product and Finance (equity) Year 5 and Beyond: Additional New Products Available.

Are Mikes Bikes good?

Not only did Mike's have the best prices that I could find, but they ship their bikes. The process they use for shipping makes it so you don't need to be a bike mechanic once your bike arrives.

Mike's has good online customer service and fast response time

. Turn around was relatively quick too even during Covid.

How do I increase my Mike's Bike profit?

1. Decrease inventory.
2. Reduce the Prime Cost of your Product(s).
3. Decrease wastage in production.
4. Focus on your more profitable products.

How is SHV calculated?

SHV = Share Price (the value of one share in your company) + Dividends (all past dividends paid including interest)

. The success of your company will be measured by the amount of SHV you can create in comparison to your competitors. So, the primary goal in MikesBikes is to should be to increase and maximize SHV.

How do you lower the idle time on a Mike's bike?

Excess idle time can be resolved through

increased production (if there is sufficient actual customer demand) or selling SCU

. If you have zero idle time this may indicate you suffered Lost Sales due to insufficient Factory Capacity.

How do you use a mikes bike?

What type of company are you managing in MikesBikes?

MikesBikes gives you the opportunity to run your own

bicycle manufacturing company

while competing against other students in your course. You will form the management team of your own Bicycle Manufacturing Company; making all the key functional decisions involving: Product Marketing.

How much SCU is needed to produce a road bike?

Example: the standard RC_Rockhopper design requires

0.5 SCU

to produce one bike. If we plan to produce 500 units of our RC_Rockhopper bike then 500 units x 0.5 SCU per unit = 250 total SCU required for production. However we also have to allow for the 25% wastage.

What benefit does corporate branding have on your bikes?

1. Branding

increases the effectiveness of your product advertising and results in increased product awareness

. 2. In the next period, consumers “forget” the advertising to some extent, but any new branding adds cumulatively to what is left.

What happened to Mike's Bikes?

Mike's Bikes, a Novato-based company that operates 12 bike stores in Northern California, has been

sold to the Pon Group

, a privately held transport business out of the Netherlands.

How many locations does Mike's bikes have?

We operate

twelve

wildly successful stores in Petaluma, San Rafael, Sausalito, San Francisco, Berkeley, Palo Alto, Los Gatos, Sacramento, Walnut Creek, San Jose, Pleasanton, and Folsom!

Why are bicycles so expensive?

Road bikes cost so much because

their frames are expensive to build, and they feature high-end components

. But still, factors like retail markup, shipping costs, costly overhead, and brand marketing influence their market prices.

Which is the famous bike in India?

How shareholder value is created?

Shareholder value is created

when a company's profits exceed its costs

. But there is more than one way to calculate this. Net profit is a rough measure of shareholder value added, but it does not take into account funding costs or the cost of capital.

What are the drivers of shareholder value?

The value driver model is a comprehensive approach that centers on seven key drivers of shareholder value i.e.

sales growth rate, operating profit margin, cash tax rate, fixed capital needs, working capital needs, cost of capital and planning period or value growth duration

[11].

What is value creation for shareholders?

Put more simply, value is created for shareholders

when the business increases profits

. Since the value of a company and its shares are based on the net present value. of all future cash flows, that value can be increased or decreased by changes in cash flow and changes in the discount rate.

How many bike companies are there in India?