Green-Tech Carbon Ride Mission and Objective
Green-Tech Carbon Ride’s Mission is to enable people and communities to adopt an active and sustainable lifestyle through cutting-edge, environmentally responsible, and adaptable cycling solutions. By coordinating the interests of customers, employees, suppliers, the community, and shareholders, we are motivated by our dedication to conscious capitalism to create value for all stakeholders. The company’s objective is to provide high-quality bikes that are superior, enriched, and stronger. These bikes will be environmentally friendly, speedy, and stronger. To maintain a financially healthy business that achieves its sales by focusing on quality control and research and development to be competitive and gain significant market share in the industry.
Green-Tech Carbon Ride Target segments
The three main target segments for Green-Tech Carbon Ride are speed, mountain, and recreation. Speed – Green-Tech Carbon Ride bicycles will be segmented based on the speed of the bikes to cater to the needs of various cyclists. Green-Tech Carbon Ride bicycles will also be segmented to cater to the needs of cyclists who ride in mountainous terrain. Also, the company will manufacture bicycles for recreation by manufacturing several brands.
Past Market Performance
Green-Tech Carbon Ride had a good Quarter three, as shown in the company’s sales. This may be attributed to market demand for high-quality recreation bikes, mountain bikes, and high-speed bikes that the company manufactures. One of the decisions that impacted positively in the past market performance is the product launches. Green-Tech Carbon Ride was able to capitalize on launching various brands of bicycles to cater to the purpose of recreation, mountain, and speed. In contrast, Green-Tech Carbon Ride’s failure to capitalize on opening new distribution channels relatively impacted the number of bikes demanded, though sales were considerably noble.
Past Financial Performance
Green-Tech Carbon Ride had relatively good cumulative financial performance in quarter 3. This was as a result of revenue generation strategies and cost management. Green-Tech Carbon Ride added three new brands that aided in revenue generation. Additionally, because of cost management, Green-Tech Carbon Ride minimized operation costs by relatively reducing the average selling price of its bikes, hence increasing sales and performing well financially.
SWOT Analysis
Green-Tech Carbon Ride’s major strengths lie in its strong brands. This includes the Seren ride, Terra Trax, and Aerosculpt bikes. Additionally, the improvement of those brands has made the company dominate the market share. Its biggest weakness is its limited financial resources. Green-Tech Carbon Ride is greatly affected by limited financial resources, restricting its expansion to new distribution locations. As of Quarter 3, the company didn’t open any new distribution stores.
Green-Tech Carbon Ride’s major opportunity lies in the advancement of technology. Through research and development and the willingness of the company to always improve its brands, it can leverage technology in the manufacture of speed, mountain, and recreation bikes. In contrast, the company faces the threat of fierce competition from other bike manufacturing companies.
Investment Plan
Green-Tech Carbon Ride needs additional funds of $2,500,000 for its investment plan, for the growth and financial stability of the company. The company will utilize $264,000 to facilitate it to open new planned stores in Rio de Janeiro and Bangalore. The projected costs for brand feature R&D and advertising expenses from Q4-Q6 are $602,900 and $712,691, respectively. The remaining amount of $684,409 will be utilized in the manufacture and production of bikes.
Marketing Strategy
Green-Tech Carbon Ride will utilize internet marketing as part of its marketing strategy. This will be done by marketing on social media platforms such as Facebook, Instagram, TikTok, X app, and Snapchat. Also, on the social media platform, the company will run affiliate marketing based on commissions or percentage of sales (Adam, 2017). The other marketing strategy that the company will utilize is a radio and TV advertising campaign. Additionally, it will erect various billboards strategically (Adam, 2017).
Sales Channel Strategy
Green-Tech Carbon Ride intends to open and operate new distribution channels in Rio de Janeiro and Bangalore. Additionally, it will increase the number of salespeople in various stores to meet customer demand and offer good customer service. Also, the company will manage its production costs, allowing it to lower the average sales price, as shown from Q3 to Q6, to compete effectively.
Human Resource Strategy
Green-Tech Carbon Ride utilizes production worker compensation, which ensures that the employees are motivated (Junita, 2021). Additionally, in research and development, the company hires talented employees who ensure the advancement of companies products. The company also intends to introduce workforce planning and performance management for efficacy and efficiency.
Manufacturing Strategy
Green-Tech Carbon Ride addition to fixed capacity and investment to fixed capacity varies in various quarters based on their demand. Available fixed capacity and operating capacity increase relatively in every quarter. % Lost capacity due to production productivity decreases as the company aims to improve efficiency. The production volume increases as the company’s primary aim is to increase production. Lost sales have increased from quarter to quarter relative to the production volume. The average unit production cost has decreased relatively as the company aims to minimize production costs. The total production cost has increased from quarter to quarter as a result of relative increase in production volume from Quarter to Quarter.
Financial Strategy
Green Carbon Ride will raise most of its capital from investors as its funding strategy. It will control its costs, specifically, the production cost, so as to price its products for them to compete well in the market. The investment decisions that the company intends to deploy is the expansion of existing stores and opening up new locations. In working capital management, Green Carbon Ride will ensure that it manages capital meant for various purposes.
Anticipated Benefits
The major anticipated benefits of manufacturing and financial strategy include increased production volume and financial stability. Through its funding strategy and capital management, the company will be able to stabilize production, which will lead to the production of enough goods for sale. This, in turn, will lead to financial stability of the company.
Actionable Steps
As part of the human resource strategy, increasing sales personnel will positively influence the company’s sales. Additionally, increasing workers compensation will increase their productivity and efficiency.
In manufacturing strategy, increasing production volume and lowering the cost of production is in line with the company’s goals, as showcased from Q1 to Q6 in production volume and average unit production cost.
References
Adams, R. L. (2017, September 12). 10 marketing strategies to Fuel Your Business Growth. Entrepreneur. https://www.entrepreneur.com/growing-a-business/10-marketing-strategies-to-fuel-your-business-growth/299335
Junita, A. (2021, January). The creative hub: Hr strategic function in the digital age. In 4th international conference on sustainable innovation 2020-accounting and management (ICoSIAMS 2020) (pp. 229-235). Atlantis Press.
Raymon, C. (2019). Develop a manufacturing strategy that works: Examples, Tips & Free Template. Strategy Software for Planning & Execution. https://www.cascade.app/blog/manufacturing-strategy#:~:text=What%20Is%20A%20Manufacturing%20Strategy,while%20achieving%20its%20financial%20goals.
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