CANNONDALE CORPORATIONPowerPoint PresentationAGENDAEXECUTIVE SUMMARYEXECUTIVE SUMMARY CONTINUEDRECOMMENDATION #1 By: Pam SaccoRECOMMENDATION #1 CONTINUEDSlide 8RECOMMENDATION $2 By: Pam SaccoRECOMMENDATION #2 CONTINUEDSlide 11RECOMMENDATION #3 BY STEVE GEBHARDTRECOMMENDATION #3 CONTINUEDSlide 14RECOMMENDATION #4 BY DAN DiLORENZORECOMMENDATION #4 CONTINUEDSlide 17Slide 18RECOMMENDATION #5 BY FRAN PAOLINIRECOMMENDATION #5 CONTINUEDSlide 21RECOMMENDATION #6 BY FRAN PAOLINIRECOMMENDATION #6 CONTINUEDSlide 24RECOMMENDATION #7 BY STEVE GEBHARDTRECOMMENDATION #7 CONTINUEDSlide 27RECOMMENDATION #8 By: Dan DiLorenzoRECOMMENDATION #8 CONTINUEDSlide 30RECAP OF RECOMMENDATIONSCANNONDALE CORPORATION•PRESENTED BY:• THE GOLDEN ACHIEVERSBUSINESS POLICY AND STRATEGYFALL 2001AGENDA•Executive Summary•Introduction of Recommendations•Questions and AnswersEXECUTIVE SUMMARY•Aging plant and equipment•High brand image and reputation •Trade-in bikes for newer Cannondale models •Introduce 2 new bicycles •Patents •Innovative WebsiteEXECUTIVE SUMMARY CONTINUED•Develop 5 additional motorcycles - Steve•Baby Strollers - DanRECOMMENDATION #1By: Pam Sacco•Weakness: Aging plant equipment.• Opportunity: Expand into foreign markets. •We will build a new construction site in Europe•IMPLEMENTATIONS:•Evaluate the favorable and unfavorable aspects of building the plant in each of the European countriesRECOMMENDATION #1CONTINUED•Obtain the necessary financing at the lowest rate to build the plant.• Build the plant in the location that offers the greatest potential for profitability based on labor costs, favorable government policies and proximity to suppliers and retailers.RECOMMENDATION #1CONTINUED•EVALUATION:•We will monitor our industry growth in the European market biannually to see if we are achieving the desired results.•We will segregate the financial data from the operations of the plant and evaluate quarterly to determine the plant’s profitability.RECOMMENDATION $2By: Pam Sacco•Strength: High brand image and reputation•Threat: High level of competition in the industry •Craft a new marketing strategy to capitalize on our high image•IMPLEMENTATION:•We will increase our marketing budget by 3% to finance the strategyRECOMMENDATION #2CONTINUED•Emphasize the quality of our product in all media advertisements.•Focus our marketing strategy to capitalize on the knowledge and quality of the service provided by our specialty retailers.•EVALUATION:•Use customer surveys to measure the results of our efforts.RECOMMENDATION #2CONTINUED•Monitor trade journals and publications to evaluate our image with industry specialists.RECOMMENDATION #3BY STEVE GEBHARDT•Strength: Strong distribution network of specialty retailers. •Threat: Low switching costs.•Institute a program where customers can trade-in their older bikes for newer Cannondale models.RECOMMENDATION #3CONTINUED•IMPLEMENTATIONS: •Allow the retailer to keep the profits from the sale of the traded-in bike.•Offer a 5% discount to the retailer on every bike sold in this manner.•EVALUATION:•Evaluate our market growth and profit margins quarterly to insure the trade-in policy is having the desired effect.RECOMMENDATION #3CONTINUED•Monitor the reactions of competitors anticipating possible counter offensive moves.RECOMMENDATION #4BY DAN DiLORENZO•Strength: Strong flexible manufacturing system.•Threat: High level of product differentiation.•We will introduce two new bicycles into each of our product categories, Mountain, Road, Multisport recreational and Specialty.RECOMMENDATION #4CONTINUED•IMPLEMENTATIONS:•Utilize consumer surveys to determine the products and features desired in each of the product categories and rate these in order of practicality and ability to develop.•R&D department will develop those determined by the above process.RECOMMENDATION #4CONTINUED•Test the product for quality by using our Q-Lab and in racing events when possible.•Place those products that pass our quality testing into the market.•EVALUATION:•Our sales force will monitor the sales of these products quarterly and executives will make decisions regarding their continued production of these lines based on these reports.RECOMMENDATION #4CONTINUED•Use customer surveys to determine if the products are well received.•Monitor competitor reactions to these new product lines.RECOMMENDATION #5BY FRAN PAOLINI•Strength: High use of patents and proprietary owned technology.•Threat: High degree of diffusion of technical know-how in the industry.•Increase our ability to prevent our rivals from copying our designs before we are able to capitalize on them.RECOMMENDATION #5CONTINUED•IMPLEMENTATIONS:•Continue to patent our technologically superior processes and innovations.•Pursue legal action against companies that infringe upon our patents.•As a condition of employment our employees will contractually agree not to divulge proprietary owned technology for one year after resignation or termination.RECOMMENDATION #5CONTINUED•EVALUATIONS:•Carefully evaluate our competitors new products to determine if our patented products or processes are being infringe on.•Use employee satisfaction surveys to determine if our contractual agreements with our employees are creating a negative reaction.RECOMMENDATION #6BY FRAN PAOLINI•Strength: Innovative Website.•Opportunity: Number of retailers is high minimizing leverage on producers.•Sell bicycle accessories except for components via the internet.•IMPLEMENTATIONS: •Obtain the services of an e-commerce company to market these products via the internet.RECOMMENDATION #6CONTINUED•Integrate our manufacturing function, suppliers and distributors into the Web based system to insure the fastest order to delivery times.•EVALUATION: •We will segregate the financial data from the sales of these accessories and evaluate them quarterly to determine profitability.RECOMMENDATION #6CONTINUED•Sales force will file quarterly reports on the reactions of our Specialty retailers to this strategy.•We will monitor trade journals and publications to watch for our competitor’s reactions to the strategy.RECOMMENDATION #7BY STEVE GEBHARDT•Weakness: Weak financial position.•Threat: Mature growth rate in bicycle market.•Develop five additional motorcycles to be introduced to the public.•IMPLEMENTATIONS:•Evaluate the product feature wants of