Chapter 1 Running Case Solution Description

Chapter 1 Running Case Solution Description 1.What are the company goals and culture?Dirt Bikes appears to have a very democratic, employee-friendly culture, emphasizing ongoing learning, quality, attention to detail, and employee contributions.

• What products and services does Dirt Bikes USA provide? How many types of

products and services are available to customers? How does Dirt Bikes sell its products?Dirt Bikes specializes in off-road and motocross motorcycles that emphasize racing performance, styling, and best quality parts sourced from all over the world. It is a small company producing only 4 models. Dirt Bikes sells through a network of authorized dealers. Its sales department is responsible for working with these distributors and finding ways to promote Dirt Bikes.

• How many employees are managers, production workers, or knowledge or information

workers? Are there levels of management?The company is very small and not very hierarchical. Most of the employees are in production. Many of its departments have less than 10 people. Production is probably the only department that warrants more than 1 manager. One might expect to see separate managers for Service, Shipping & Receiving, Parts, and Design and Engineering and perhaps several additional managers for Manufacturing.

4.What kinds of information systems and technologies would be the most important for a company such as Dirt Bikes?One would expect to see information systems supporting manufacturing and production and sales and marketing being the most important for this company. Such systems would help the company monitor work on the assembly line, obtain parts from suppliers, monitor orders from distributors, and provide parts and servicing information. A company website to publicize the unique features of this brand and its connection to motorcycle racing events would also be very valuable.Essentials of MIS 15th Edition By Kenneth Laudon, Jane Laudon (All Chapters, 100% Original Verified, A+ Grade) 1 / 3

Chapter 2 Running Case Solution Description The spreadsheet solution file for this case uses a line chart to show the 5-year trend in Dirt Bikes’ total sales and a stacked column chart of 5-year sales trends to show how much international and domestic sales (measured by units sold) contribute to the total.One can see from these graphs that unit sales dipped slightly during 2022 but that overall, sales have been growing. The portion of overall sales represented by international sales has not changed significantly, suggesting that there may be opportunities for Dirt Bikes to grow its international sales. The income statement data show a continuing rise in operating expenses and cost of goods sold combined with declines in gross and net margins. Dirt Bikes needs some way to bring down its costs, and new information systems might help. The balance sheet shows that Dirt Bikes has sufficient assets so that it could afford to invest in new product development and new information systems. 2 / 3

Chapter 3 Running Case Solution

Software requirements: Web browser software

Word processing software Electronic presentation software (optional)

• What activities at Dirt Bikes create the most value?

The most valuable activities include inbound activities (primarily supply chain management but also including locating appropriate, high quality parts anywhere in the world)), manufacturing (which is mostly assembling the proper materials that come from elsewhere, but also include the testing of each product as it comes off the assembly line), marketing (including some advertising, its racing commitment and accompanying publicity, coverage in appropriate journals, and an attractive and helpful website), sales (both ordering systems and systems support for its dealers), and service (again, support for its dealers, plus availability of parts and service information for owners who are too far away from dealers).

• How does Dirt Bikes provide value to its customers?

The value Dirt Bikes’ customers receive comes from the quality of the bikes, their off-road and racing performance, effective and valuable user groups, and available servicing when needed.

• What other companies are Dirt Bikes’ major competitors? How do their products

compare in price to those of Dirt Bikes? What are some of the product features they emphasize?

Dirt Bikes models and prices are: The Enduro 250 retails for $6250, the Enduro 550 retails for $8800, the Moto 300 retails for $7295 and the Moto 450 retails for $9395. Dirt Bikes has appealed primarily to serious trail and Enduro riders, although it is making inroads into the motocross market. Major Dirt Bikes competitors include, Honda, Husquvarna, Kawasaki. Suzuki, KTM, Bultaco, and Yamaha. Students should check the web for these companies’ most recent dirt bike models and prices and see how well Dirt Bikes can compete with these companies in terms of price, performance, and styling.Dirt Bikes needs to continue emphasizing its American brand name, styling, and quality.Can it also compete on price?

• What are the competitive forces that can affect the industry?

The industry could be affected by changing economic conditions and demographics, which could depress the market for dirt bikes and put more emphasis on competing on the basis of cost. Young populations in Japan, USA, and Europe who make up most of the customers for dirt bikes are declining (although many baby-boomers and retirees are flocking to Harley Davidson and other brands for highway cruising.) The market for dirt bikes worldwide is not very big and there are already many competitors, so Dirt Bikes is not likely to see

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