Appendix A (Consolidated Financial Statement) ………………………………….. 143A. Executive SummaryStrategic objectivesFinancial objectivesOpportunitiesThreatsStrengthsWeaknessesB. Current SituationI. Current PerformanceII. Strategic PostureLong Time ObjectivesFinancial objectivesMacro-environment forcesEntryThis is an opportunity for competitors in the US market to help maintain its market share.Governments commonly limit foreign entry and must approve foreign investment applications. This is an opportunity for US companies because companies from foreign countries are affected by the regulatory pollicies and weakened competitive advantages.HighHighHighHighTechHighMediumLowHighMediumLowIntrepid, Inc.Other KSFsSocietal3A. Are the company's prices and costs competitive? Inbound LogisticsN/AN/A6. Financial Analysis of CannondaleA) Comparative AnalysisTotal bike industryCannondale’s the most dangerous competitors:B) Cannondale Financial Ratios(1999)I. Liquidity ratiosIII. Debt management ratiosIV. Profitability ratiosCannondaleI. Liquidity ratiosII. Asset management ratiosIII. Debt management ratiosIV. Profitability ratiosV. Growth ratesVI. Valuation ratiosIV. Summary of Internal FactorsKey IssuesPositionStrategic RecommendationsIV. Summary of the strategiesExternal FactorsOpportunities/ThreatsInternal FactorsOpportunitiesThreatsStrengthsWeaknessesCompetitive AdvantagesStrategic AlternativesRecommendationsAction:ANNUAL BALANCE SHEETANNUAL CASH FLOWS2. How to turn around the stock price in a short turn period?Project 3: MotorbikesPROFESSOR EDWARD DESMARAISBUS470 BUSINESS POLICY AND STRATEGYFALL 2001CANNONDALE CORORATIONCASE ANALYSISDecember 17, 2001International Strategic AnnalistsTABLE OF CONTENTSA. Executive Summary ……………………………………………………………. 1B. Current Situation ……………………………………………………………. 2Current Performance ……………………………………...……………. 2Strategic Posture …………………………………………..………. 4Corporate Governance ………………………………………………..…. 18C. External Factors ……………………………………………………………. 19Industry and Competitive Analysis ……………………………………..…. 21Summary of External Factors ………………………………………… 73D. Internal Factors ……………………………………………………………. 77Financial Analysis …………………………………………………… 105Management’s Personal Ambitions, Philosophies, and Ethics ………... 117Company Culture …………………………………………………………….. 118Summary of Internal Factors ………………………………………….. 120E. Strategies ……………………………………………………………………… 125Generic Strategy …………………………………………………………….. 125Strategy to Gain Maintain Competitive Advantage ………………………….. 126Matching Strategy …………………………………………………………….. 127Summary of the Strategies …………………………………………….…….. 130F. Recommendation and Implementation / Evaluation and Control …...…………….. 134Appendix A (Consolidated Financial Statement) ………………………………….. 143Appendix B (SWOT Matrix) ……………………………………………………………. 152Appendix C (Responses to Panel) …………………………………………………… 155iA. Executive Summ a ryMissionand VisionObjectives(short and long term; financial and strategic)External Opportunities and ThreatsInternal Strengths and WeaknessesRecommendations (include the pros and cons of each recommendation)1Corporate, Business, Functional, DepartmentalCannondale Corporation mission statement is: “To be the best cycling company in the world” . Their mission inspired ten principles and on of them is “Stay lean, remain competitive and entrepreneurial” 1 To fulfill their missions they enter the motorcycle industry recently. CannondaleVision is “making the best cycling Strategic objectivesShort term:- Achieve 15% share of the off-road motorcycle US marketby year 2002.- Lower the operation cost in manufacturing by 2% by 2001.- Quicker product design-to-market times by 15% in 2002.- Decrease the number of new product defect by 20% by 2002.- Deliver their products to the retail stores in 5 to 12 days from the order receive. Long term:- Become number one manufacturer and marketer of high-performance bicycle in the world by 2010.- Reduce the number of defects to 1 on 10,000,000 bicycle by 2004 to 2009.- Enter motorcycle European markets by 2005 and capture additional 10% of market share.- Spend $1 million on marketing each year to get the strongest and most recognized brand name by 2005.- Establish 50% more specialty retailers store in Australia and Europe by 2005.Financial objectivesShort term:- Achieve 20% annual revenue growth in the 2000.- Return to its profit margins of 6.2% from 1995 by the endof next year.- Improve its MVA by 10% by the end of the next year.- Increase revenues from Europeans market by 34% by 2001.- Improve Assets turnover by 12% by 2001 to improve assets efficiency.Opportunities- Faster then US growth of international markets.- Expend domestic market share.- Locate manufacturing plant in other countries with lower labor cost than in US.- Societal values and lifestyles in which customers turning toward outdoor activities in their leisure time and have disposable income to spend.- Market size- E-commerce- High demand for juvenile bicycles. - Low rivalry in the motorcycle industry.Threats- Maturity of the US market.- Low industry profitability.- Exit barriers which required large capital to leaving the market in termsof stakeholders’ equity.- Economic slowdown.Strengths - A powerful narrow differentiation strategy supported by skills and expertise in key functional area.- Flexible manufacturing capabilities suited for production of high-end, high-quality bikes.- Higher that rivals degree of differentiation supported by greater degree of