1. BUSINESS GAME
Qiwei WANG
BICYCLE BUSINESS
Leisure & Competition
FRANCE-NETHERLANDS-SWEDEN
SKEMA BUSINESS SCHOOL
REFERENCE TEAM:
2011-2012 UPSTRAT_275_8
M1-PGE Program

2. TABLE OF CONTENTS
OVERVIEW
1° FINANCIAL UNIT
«A business where the
only goal is to make
2° PRODUCTION UNIT money, it is a really
poor business» Henry
FORD
3° COMMERCIAL UNIT
4° H.R. UNIT
THE FUTURE...

3. OVERVIEW
Ma
xim - To produce the 3 kind of
Op eS
M
bicycles (Highbike-Roadbike-
era OU Easybike)
tio
n m LEIL
T I - To be present on the
an LET different market as soon as
ag possible (France-
er
Alex S Netherlands-Sweden)
E Mar andra
keti
ng m SER
ana
S
- To be a large company as
possible
A I
Pierr ger - To provide a large amount
e-Ed of bike with enough options,
ouar choses, prices with a certain
Finan d TA
cial m LLINEA O R&D level
M anag
er
U
N
- To be a well company that
take care of his employees
and their efficiencies

4. FINANCIAL UNIT
CONTENTS
➩Turnover (2012-2018)
➩Net Result (2012-2018)
➩Cash Flows (2012-2018)
➩Economic Firm Value (2012-2018)
➩Solvency Ratio (2012-2018)
➩Balance Sheet (2018)
➩Income Statement (2018)

5. TURNOVER
30000
22500 20665 20147
18753
16862
15000 14107
7500
5707
0538
2015 2016 2017 2018
2012 2013 2014
We have a growing activity and we yield, each year, a
growing turnover.
Since 2013, we are the first company in term of turnover.
We are second in 2018.

6. NET Result
1844 2000
1500
1209
732 1000
217 725
-6 500
0
-500
-1322 -1000
2012 2013
2014 -1500
2015
2016
Despite of a growing activity, 2017
2018
our company collapsed. we
fell down in 2015 in the
bankruptcy process.
This difficult situation can be explained by the only fact, that we don’t have readed and
anticipated the market fluctuation; we had done some wrong measures about our
operations, therefore we have recorded a huge amount of unsolded bikes. this have
represented amazing lost of money (3 069 K€)
But we have stopped the bleeding and restarted the company.

7. Cash Flow
Economic Firm Value
10000
9209
7500 7992
5000 5568
2415
2500 3176 1781
944 1278
322 1999
19 1397
0 783 -814
-2500
2012 2013 2014 2015 2016 2017 2018

8. SOLVENCY ratio
68 70.00
49 52.50
38
36
34 35.00
26
17.50
2012 2013 1
2014 2015 0
2016
2017
2018

9. BALANCE SHEET-Last cycle (2018)
We have to spotlight several financial aspects:
- Asset, we have «2754» fixed assets that represent a good point because this represent a guarantee for
the company to be more solvent and serious for banks. this is what we have in our company...
we have also «2968» in cash that is a good point too, because this is a second security for the company
if she has to be faced with some financial problems.
- Liabilities, we have not a bank overdraft that’s a good news; We have just short-term debt for «2342»
which can explained thanks to the suppliers debt (1980), because we bought a lot of bikes add in our
production...

10. INCOME STATEMENT- Last cycle (2018)

11. PRODUCTION UNIT
PRODUCTION FORECAST
REALIZATION
0 12500 25000 37500 50000
Highbike
2016 Roadbike
Easybike
0 10000 20000 30000 40000
Highbike
Roadbike
2018
Easybike

12. COMMERCIAL UNIT
MARKET SHARES
2018
➩LEADER on the EASYBIKE market in each country
➩LEADER on the ROADBIKE market in Netherlands
➩CHALLENGER on the ROADBIKE market in France
➩CHALLENGER on the HIGHBIKE market in France

13. FRANCE NETHERLANDS
HIGHBIKE SWEDEN
30
22.5
20.5
18.3 17.2 15
16.4 15
14.5 14.1 12.5 12.7 12.4
9.89.4 9.1 10.8 7.5
8.8
2012 2013 2014 2015 0
2016 2017 2018
CHALLENGER:
LEADER: France-2013/14/18
Netherlands-2014 Netherlands-2013
Sweden-2017

14. FRANCE NETHERLANDS
ROADBIKE SWEDEN
30
29.7
25
25.9
23.3
20
20.2
17.3 18.3
16.7 15
13.7 13.4 14.7
12.7
11.5 10
10.5
6.9 5
2012 2013 2014 0
2015 2016 20170.2 2018
LEADER: CHALLENGER:
Netherlands-2014/15/18 France-2013/14/18

15. FRANCE NETHERLANDS
EASYBIKE SWEDEN
100
100100
75
50
49.2
35.7 37
29.1 30.234.326.1 26.5 26.8 25
27.2
2012 2013 2014 2015 0
2016 2017 2018
LEADER: CHALLENGER:
France-2014/15/16/17/18
Sweden-2017
Netherlands-2014/15/16/17/18
Sweden-2018

16. Advertising % TO net
In 2012, as we
launched our 3000
company we had to
invest a lot, so we 2304 2263 2360 2360 2250
decided not to invest 1664
too much in 1500
marketing at the 760
beginning. 7 13.3 750
38 11.8 13.7
2012 2013 12.1 11.4
2014 11.7 0
2015
In 2013, we had the 2016
2017
capabilities to invest 2018
more in advertising, so During the following year we’ve
we did it, as we had lost kind of stabilized the level of
market shares because investment in marketing around
other groups had invest 12% of TO net.
a lot in marketing from
the beginning.

17. HUMAN RESOURCE UNIT
2018
STAFF SIZE OUTLETS
Production= 52 FRANCE= 22
Administration= 42 NETHERLANDS= 22
Head= 2 SWEDEN= 4

18. Cycles
2018 2012
Administrative staff
Production staff Investment!
- Better Motivation
- Better Motivation - Training
- Better Skill
- Better Faith - Bonus
- Better Faith
- Good Efficiency - Remuneration
- Better Efficiency

19. THE FUTURE...
After that the company collapsed, we had to reduce
our expenditures, and to do a better measurement
about our operations.
At present, the company is restarted well and better.
we must to take back our investment. as in R&D,
production equipment and training.
According to the Highbike market, the amount of bike will fall. Thus, we have to get the right
measure for our next operations (reduce the Highbike forecast). More and more the destiny of
our company will be to stay focused on the Easybike market and to stay leader on it. Our
compagny position is to provide a high quality of bikes, with a high price. For this we have to
invest in R&D, in order to provide a large option range.
Our compagny has good capabilities and a
strong capacity of reaction as you can see in
the pass (bankrupt). the compagny has a
reliable experience in the different markets
for the different kind of bikes. So she is able
to get right decisions for its operations and
strategies.

20. THE DEAL
The aim is to present you two important aspects
➩A profitable company
➩A company without risk
After this, we will be able to provide you our
company price and may be make a deal...

21. Profitability 17
20
Operating Profitability 14.415.1 14.6 15.5 15
9.7 11.2
7.2 10
1.7 3
5
2012 2014
2016 0
2018
2020
Weak recovery
FORECAST
Thanks to our
strategy, we will be
able to yield some The bankrupt is now far away, is time to
benefits and make reinvest and to consolidate our leader
more profit, as you position in the Easybike market, and
can see with our stay challenger in the Roadbike
profitability forecast... market...

22. We are a reliable & liable company that limited
the risk...
Thanks to our business plan, the future
profitability represents our organizational
strategy and our operations that we have
done.
With this presentation, you know that our
company is able to obtain this objectives!

23. OUR COMPANY PRICE:
10 000 K€ (10 000 000€)
BICYCLE BUSINESS REFERENCE TEAM:
Leisure & Competition UPSTRAT_275_8
FRANCE-NETHERLANDS-SWEDEN
We staying at your disposal for any
information...
Thank you!

24. Another method to calculate how to sell our
company and to determine its price...
1° cash flow statement
Discounted Cash Flow= Net Result + Depreciation + Exceptionnal ítems – NMWC – employees
participation– investment
Discounted Cash Flow= 725+ 162 + 180 – 118 – 926 – ( 2754 – 3 307)= 576
(Evolution de 576k€ de trésorie sur la prochaine année)
2/ Debts values on equity
Indebtedness net= (Short-term debt + Loan)/ Equity= ( 2395 + 1202) / 3985= 0,90
(inférieur à 1 donc elle augmente la potentielle valeur de l’entreprise par 10 %)
3/ Goodwill/badwill
Goodwill= 4 499k €
Final price
(576 + 4499 ) x ( 1+ 10%)= 5 582,5 k€