To the Directors of Mike’s Bikes,
Team Awesome, founded in 2008, is a corporation headquartered in Waterloo, Ontario, Canada.
Team Awesome is devoted to supplying high quality bikes to its retailers and consumers in the market.
Throughout our journey in the bike industry, we started off specializing in mountain bikes and eventually,
as we gained experience and knowledge in our competitive world, it allowed us to create a more
sophisticated business strategy amongst our competitors as we were able to expand beyond mountain
bikes and produce road and youth bikes.
The central goal throughout our operation was to incur maximum profit as early as possible.
However, the key fundamental of this strategy was our attention towards the conservation of cash. During
the beginning phases of our business, contrary to our competitors, Team Awesome reserved cash. Our
strategy, unlike many other teams, was keeping this reservation of cash to be used for future expenditures
on higher grade products. Team Awesome intended to focus on road bikes, a bike with higher margins
and lower sales volume, in order to create an extraordinary product and develop a niche market. Due to
this focus on road bikes, when the opportunity presented itself in later rollovers, Team Awesome invested
heavily in development to create road bikes.
Subsequently our original strategy, though reasonable, was ineffective. We did not achieve our
goal to obtain the highest level of profit. Nor did Team Awesome have a high shareholder value. Both
failures were due to a lack of sales. This lack of sales was directly influenced by our low advertising
expenditures in the beginning of our operations. However, further along in our business development the
team realized that advertising expenditures were necessary to increase sales, especially with the rate we
were going at. While our expected results were not ultimately what we hoped to achieve, sales did
increase to a satisfactory level nonetheless.
Overall, we have always been dedicated to providing our customers with high quality bikes. The
basis of all business decisions were carefully considered through effective marketing, operational, and
financial strategies. Although our shareholder value was not the highest amongst our competitors, we