Management and Organizational Studies 3370A/B Lecture Notes - Bike Boom

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3370A/B
• Professor: Prof

Document Summary

10 models ranging from beginner to deluxe models. Chain of discount department stores in the northwest. Sales volume growing to point that house product lines being added. Top of the line but not above average. Would have to create a large inventory of bicycles (unknown demand) Hi-valu wants to sell the challenger bicycles at lower prices than the name- brand bicycles i. e. buy bikes at lower price because of the need to maintain ratios. Wants different handlebars, seats fenders, etc. and the name challenger engraved. Bikes need to be packed in boxes with print as well. A contract with hi-valu would give it access to many new locations as hi-valu has numerous chain locations. Any bicycles not purchased within four months would be purchased by hi-valu. Would have to sell at lower price than brand names models. Bicycle boom flatted out and current operations running at 75%.