Envy Rides Incorporated.docx
Envy Rides Incorporated.docx

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School
Western University
Department
Business Administration
Course
Business Administration 1220E
Professor
Sean Burkett
Semester
Fall

Description
Envy Rides Incorporated You: Scott Miller, newly appointed manager of commercial accounts at the Genesis Bank of Canada Them: Jacob Hessels, dealer principal of Envy Rides Incorporated Requesting: $60,000 long-term loan for a partial renovation to his recreational motorsport dealership and $450,000 working capital loan for the day-to-day operations of his business.  Current unstable economy  Without loans, unsure if Envy Rides could continue  Millar has a recent increase in loan requests from new and existing customers Jacob Hessels  Jacob is a talented business man, successful with marketing campaigns well known in many different industries  Career had started in the retail car sales industry where he worked as a car salesman  After excelling in car sales for over a decade, Hessels became the VP and director of marketing for Wegz Stadium Bar(sports restaurant located in Toronto) and stayed in the role for 5 years  Moved on to role of general manager for the start-up of a Hyundai dealership in a small SW Ontario town  Opportunity arose to purchase an existing motorsport dealership; dream come true to Hessel Envy Rides Incorporated  Banks were unwilling to loan Hessels money b/c he could provide only minimal start-up capital for his business venture..so instead, in order to purchase the dealership, Hessels personally borrowed funds from his network of private investors who believed in his talent for his new business venture  In August 2007 (Envy’s first complete fiscal year end was 2008) Hessels bought Milton Motor Sports (existing recreational motorsport dealership in Milton area just outside Toronto)  Immediately changed the name to Envy Rides Inc. converting the business’s identity and building  Grew exponentially in early months..sales increased, and the staff complement expanded from six to more than 20 employees in less than a year  February 2008, Envy’s growth supported a move, so the business relocated to its current store in Mississauga, Ontario  14000 square foot leased facility focused on selling recreational vehicles, mainly in motorsport category (focusing on motorcycles with large focus on Aprila, Moto Guzzi, Suzuki, and Yamaha thereby increasing market share by offering brands of interest to most consumers)  Additionally, Envy offered accessories and apparel (helmets, boots, jackets etc.)  Envy provided recreational vehicle servicing by a knowledgeable and friendly parts-and-service team within the dealership (like an automotive dealership)  Accommodate riders during winter, Envy offered storage for motorcycles and other motor sport vehicles  Envy also had a strong website presence on the Internet with info on events, inventory news, and testimonials  With Hessels and his marketing expertise, Envy subject of brilliant marketing campaigns and initiatives  Grand opening in 2008 featured activities and events  Envy also had a large presence on the radio with consumers between 18-35  Envy matched any other competitor’s price and relied on strong word-of-mouth advertising  Envy strove to ensure customer satisfaction at the highest level The Industry  Two major competitors: Snow City Cycle and Kahuna Power Sports  Other Honda stores provided indirect competiton  Spring 2008, severe downturn in the economy (recession) seriously affecting sales of new and used motorcycles  Difficult for consumers to get financing even if they had strong credit 
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