Question

In: Operations Management

Peak Bikes, a national bicycle manufacturing company that specializes in producing off-road bicycles (mountain bikes), has...

  1. Peak Bikes, a national bicycle manufacturing company that specializes in producing off-road bicycles (mountain bikes), has hired you as an outside consultant. Peak Bikes currently has 170 both full-time and part-time employees. The firm’s management is organized as follows:
    1. Frontline managers: Oversee bike production and production staff. This is the part of the company that actually manufacturers the bicycles.
    2. Middle-level managers: Manage frontline managers, track performance versus company’s goals and strategy, and report to top level managers
    3. Top-level managers: Set overall strategy and oversee middle-level managers

Peak Bikes sells its bicycles in various specialized brick-and-mortar stores throughout the United States. These retail stores must complete a vendor application and then be approved by Middle and Top-level managers in order to sell Peak Bikes. One-hundred percent of Peak Bikes sales are through these brick-and-mortar retail stores.

Now the company wants to sell its bikes on their website – moving the company into a new e-commerce platform. This has implications throughout the company, including Production; Vendor relations; Customer Service; Operations, etc. With this decision, management duties and responsibilities will also change. In the past, Peak Bikes has struggled with keeping frontline and middle level managers motivated and engaged. From a recent management employee survey, many feel that they have no input in the direction (strategy) for the company.

Your task (as the consultant) is to educate the entire management team (all levels) about organizational planning with regard to the new e-commerce platform. What would you recommend that the company expect (in general terms and using the materials from this week’s chapter) from each level of management in terms of their responsibilities and level in involvement in the overall organization planning efforts with regard to e-commerce?

Solutions

Expert Solution

As an external consultant and an expert in the field, I would make them understand their role and importance in the value creation chain. Each individual is equally important and therefore it is essential that each put in their best efforts towards their allotted tasks. They all have to fulfil their responsibilities and ensure that they are successfully achieving their goals. They all must be able to personally relate to the organizational goals and contribute positively towards the e-commerce project.

Responsibilities and level of involvement of respective managers.:

The front line managers must be involved in day-to-day operational activities. They must ensure execution of tasks is done properly. Problems are solved at the earliest. Data fed in the system is correct and done on regular basis.

The middle - level managers monitor and control processes. They must ensure milestones of the project are being met. Having risk management plans.

The top line managers, they must ensure success of the project and whether middle level managers are performing or not.


Related Solutions

Michael’s Bicycles manufactures different types of bicycles: mountain, road, and youth. Sales of the road bikes...
Michael’s Bicycles manufactures different types of bicycles: mountain, road, and youth. Sales of the road bikes have fallen. The firm is considering two options: (1) drop the road bike line; or (2) replace the road bike line with fat tire bikes. Price and cost data are as follows: Mountain Road Youth Fat Tire Price/unit $400 $1200 $120 $600 Variable cost/unit $300 $600 $75 $400 Total Fixed costs $3,000,000 $2,500,000 $500,000 $1,000,000 Number of units 15,000 4,000 20,000 10,000 If the...
Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,600. The bicycles sell for...
Bianca Bicycle Company manufactures mountain bikes with a variable cost of $1,600. The bicycles sell for $2,350 each. Budgeted fixed manufacturing overhead for the most recent year was $11,600,000. Planned and actual production for the year were the same. State whether income is higher under variable or absorption costing and the amount of the difference in reported opearting income under the two methods. Treat each condition as an independent case. (Round intermediate calculations to 2 decimal places.) 1. Production 22,600...
Jon Hoke owns a bicycle shop. He stocks three types of bicycles: road-racing, cross-country and mountain....
Jon Hoke owns a bicycle shop. He stocks three types of bicycles: road-racing, cross-country and mountain. A road-racing bike costs $1,200, a cross-country bike costs $1,700 and a mountain bike costs $900. He sells road-racing bikes for $1,800, cross-country bikes for $2,100 and mountain bikes for $1,200. He has $12,000 available this month to purchase bikes. Each bike must be assembled: a road-racing bike requires 8 hours to assemble, a cross-country bike requires 12 hours and a mountain bike requires...
SHU Bicycle Shop sells Mountain bikes, Dirt bikes and Leisure bikes. D. Shim, owner, aggregated the...
SHU Bicycle Shop sells Mountain bikes, Dirt bikes and Leisure bikes. D. Shim, owner, aggregated the following information with help of SHU Accounting Consulting Group: Product sales price purchase cost Mountain bike $1,500 $900 Dirt Bike $1,800 $800 Leisure Bike $800 $600 The shop anticipates selling 600 Mountain bikes, 250 Dirt bikes and 150 Leisure bikes. Monthly common fixed costs which can’t be separated to any product are $1,000,000 and income tax rate is 40%. Required) 1. What is unit...
Assume you own a company that produces mountain bikes. Your company has manufactured mountain bikes locally...
Assume you own a company that produces mountain bikes. Your company has manufactured mountain bikes locally in the United States for over 30 years. Because low-cost competition is increasingly gaining market share and your company costs are relatively high, you are considering outsourcing production to India. 1. Describe how differential analysis can be used to assist in making this type of make-or-buy decision. Include specific examples related to producing mountain bikes in your response. 2. What additional factors would you...
Assume you own a company that produces mountain bikes. Your company has manufactured mountain bikes locally...
Assume you own a company that produces mountain bikes. Your company has manufactured mountain bikes locally in the United States for over 30 years. Because low cost competition is increasingly gaining market share and your company costs are relatively high, you are considering outsourcing production to China. A. Describe how differential analysis can be used to assist in making this type of make-or-buy decision. Include specific examples related to producing mountain bikes in your response. B. What additional factors would...
A company manufacturing bicycles has a current annual demand of 1,500 bikes. In buying bike tires,...
A company manufacturing bicycles has a current annual demand of 1,500 bikes. In buying bike tires, they pay $14 per tire with an estimated carrying cost of 20% of the tire’s cost. Each order cost $25 to process. Orders are placed on the first of each month for an equal amount every month. Determine the current ordering cost, carrying cost and total inventory cost each year using the current order quantity. Calculate the EOQ. Determine the current ordering cost, carrying...
Buzzard Bicycle specializes in custom painting and design of bicycles. December 31 is the company’s fiscal...
Buzzard Bicycle specializes in custom painting and design of bicycles. December 31 is the company’s fiscal year-end. Information necessary to prepare the year-end adjusting entries appears below. A three-year fire insurance policy was purchased on July 1, 2021, for $19,200. The company debited Prepaid Insurance for the entire amount. Employee salaries of $25,800 for the month of December will be paid in early January. On November 1, 2021, the company received $7,200 in cash from a customer requesting a custom...
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted...
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno’s monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,700 Insurance on factory building 2,100 Raw materials (plastics, polystyrene, etc.) 80,100 Utility costs for factory 1,000 Supplies for general office 400 Wages for assembly line...
Waterway Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted...
Waterway Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Waterway’s monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,300 Insurance on factory building 1,700 Raw materials (plastics, polystyrene, etc.) 84,800 Utility costs for factory 1,000 Supplies for general office 300 Wages for assembly line...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT