View the step-by-step solution to:


Question :

In the case study below

1.What is the management decision problem


2.What is the market research question (MRQ)

3.List two research objectives that address the construct of interest in the MRQ

Case Study :



Lime is the brand name used by San Fransisco-based company Neutron Holdings for its
electric scooter and electric bike rentals. After successfully operating Lime in almost 100
cities in the USA, Lime launched their electric bikes in Australia in late 2018. Initially 300
electric bikes were deployed in Sydney, with plans to expand to Melbourne and Brisbane.
Lime’s electric bikes use a lithium battery, which needs to be recharged every two days. In
Sydney around 50 operational staff collect and recharge the bikes. Lime's electric scooters have become very popular in Australia, as an inner city commute
option, and so the brand extension into electric bikes seems a logical strategy. However, the
history of dockless bike sharing services in Australia has not been positive. Dockless bike
sharing services enable customers to unlock a bike using a mobile app, and then to leave the
bike wherever they like. Initially these services were promoted as an environmentally
friendly and cheap alternative to other commuting options such as taxis and buses for
example, although there is little data available to analyse any impact on traffic congestion
levels. A number of businesses promoting dockless bike sharing services in Australia have
already failed, such as Chinese company Ofo and Singapore company oBike. Based on their
electric scooter hire success, Lime management is optimistic about the potential demand for their electric bikes. Base is the proposed brand name of 3 Brisbane start up company aiming to compete with
Lime in the Brisbane dockless electric bike sharing market, focusing on the inner city area
including the central business district, Spring Hill, New Farm, West End, South Brisbane and
Woolloongabba. Base management are keen to avoid the problems encountered by the failed
dockless bike services. As part of a larger feasibility study, they are considering surveying a
large sample of Brisbane consumers to find out what people think of dockless electric bikes
as an inner city commute option. Note that Base are n_ot asking you to work out if their business idea is financially feasible, as this complex task is being undertaken by an


accounting firm. However, the survey findings will be of interest to those undertaking the financial feasibility analysis, and those responsible for designing the Brisbane service. There has been a lot of negative public reaction to some dockless bike sharing services in
Australia. Note that these were traditional bicycles rather than the new electric models. The
sheer volume of bicycles being left on pavements in some areas led to negative public
opinion, which ultimately led to people complaining to their local councils and throwing the bikes into rivers, trees and piles in roads. The docked bike scheme was launched in Brisbane in 2010. In Brisbane it is illegal to ride a bike Without wearing a helmet. Bike sharing services understand the helmet issue is a
challenge, in that anyone can steal a helmet supplied with a bike. Therefore an electric bike
without a helmet attached is likely to not be used, and therefore affect profitability. Base
management believe that the key to overcoming the helmet challenge is to have a large mobile support crew.

Top Answer

Management Decision Problem: What should Base do to improve public opinion on dockless bike sharing services?... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question