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UMUC IFSM300 Final Assessment Exam




Question;IFSM 300 Final;Assessment Exam;By;my signature below, I confirm that the work contained here is my own, I have;received no outside assistance and have properly cited and referenced any;external research that has been incorporated in my answers. I have fully complied with UMUC's Policy on;Academic Dishonesty and Plagiarism (Policy 150.25). Failure to properly;credit your research sources is a violation of this policy.;(Typed;signature represents actual signature);Instructions;Use the Case Study presented here to answer;the questions below. Your answers should;be long enough to answer each question fully and completely and typed the;individual question. Use as much space;as is needed. Your answers should;demonstrate an understanding of the concept(s) should apply critical thinking;and should provide analysis of the Case Study in light of the concepts(s). You should not just re-iterate what has been;presented in class, but integrate the information and relate it to the Case;Study. Proper APA style must be used for;any citations and references that you use.;Your Exam will be graded on the completeness and accuracy of your;responses and whether you have appropriately tied your responses to the Case;Study. Responses that do not mention the;Case Study will receive very few points, if any. Each question is worth 10 points.;OLD DOMINION TRAIL BIKES;Case Study;In 1985 Ted Thomas took;$6,000 of his savings, borrowed another $4,000 from his best friend, and opened;a bike rental business in Vienna, VA, adjacent to the Washington & Old;Dominion Trail (W&OD) that goes from Purcellville to Old Town Alexandria;(45 Miles) and connects to the Mt Vernon Trail (18 Miles) and ends at George;Washington?s Mt Vernon Estate. He rented;a location, bought 10 bikes and opened his first store in Vienna near an;entrance to the W&OD Trail, where there is also parking, and near the;historic Vienna Inn and a number of food and drink establishments. He has since opened stores in Old Town;Alexandria and Reston, VA, where he sells, rents and repairs bicycles. The Vienna store is now his anchor store, and;at 5,000 square feet, it is three to five times larger than his other;stores. Ted estimates he sells around;3,000 new bikes a year. Because of the high use of the W&OD trail;especially on weekends, he also provides tune up and maintenance services at;all of his stores for the many riders from up and down the trail.;In 2012, Ted leased a;store in the heart of D.C., near the Smithsonian Museums and other tourist;attractions. He uses this store to rent;bikes to tourists and residents of the city, and does some repairs to his rental;bicycle inventory in the back of the shop.;Although he has always;made money, or he would not be in business, Ted has seen a decline in bikes;sales of about 20 percent since 2008. He;attributes this to the downturn in the economy and the growth in Internet sales. However, his rental and tune up and repair;business has increased dramatically. Over;the past few years, he realized that he must be more aware of expenses and;decrease them wherever practical in order to preserve profits.;Ted has thinks that the one;of the most important factors is the weather, but has no data to support that;thinking. On rainy days, there are few customers;in the stores, while on sunny weekends all of his locations are extremely;busy. From spring through fall, Ted;keeps all his stores open seven days a week, while in the winter months he;opens his stores on the weekend when the weather is good for riding. Through observation, Ted figures his highest;sales occur in May, and that June and September are his best months for;rentals. He also sells many bikes during;the holiday season in December, but in January and February, he often wonders;if he should close shop and go to Florida for a couple of months.;Old Dominion Trail Bikes;grosses between $5 and $8 million annually and earns Ted a comfortable;six-figure income. Each year, he leaves;a considerable amount of cash in the business so that he does not have to;borrow money. He sells a wide variety of;bikes (from tricycles for toddlers to sophisticated racing bikes) and;accessories such as helmets, speedometers, bike racks, repair kits, and;clothing. Bicycle sales have decreased;to account for 25 percent of revenues. Accessories;such as helmets, bike racks, gloves, and locks amount to another 5 percent. Rentals make up about 35 percent, and repairs;make up the remaining 35 percent.;In recent years, he has;noted that customers are less likely to purchase the high-end road and;triathlon bikes, and are purchasing bikes in the range of $400 to $1,000. The lower priced bikes are also easier to;sell and to keep the cash flow moving.;Most of the rental;business is concentrated in the D.C. store in downtown and the Alexandria store;due to the tourists and university students located near those stores. Ted is excited about rentals, as they have a;huge profit margin. He can charge as;much as $50 a day, which means the bikes pay for themselves after just a few;rentals.;Ted?s expenses include the;cost of goods such as new bikes and accessories, rent and payroll. He negotiates leases for all his locations;except the Alexandria store, which he owns outright. Ted has 15 full-time employees and usually;hires another 15 part-time employees during the busy months and weekends.;Until two years ago, he;was spending about $30,000 a year on advertising in local papers. Now he uses a simple website and has links on;many of the local biking trail sites to provide information about his various;locations, and his advertising budget is close to zero.;In the late 1990s, Ted over-expanded;to six stores, including a store in Purcellville, VA, and one in Bethesda, MD. The expansion necessitated a warehouse in;Springfield, VA, the hiring of a general manager and considerable overhead;expenses. In a subsequent cost-reduction;effort, Ted closed the Bethesda store, gave up the warehouse and moved his;inventory to the Vienna store, and let the general manager go. Now, he handles all the general management tasks;himself, which affects the time that he has available to plan and develop;strategies.;Ted further reduces his;expenses by working in the Vienna store two days a week. Since he has only one staff person in some of;his stores, he has to make special arrangements if that person does not come to;work, or takes a day (or week) off.;He is trying to expand;the bicycle repair work, especially on the weekends, so he will be able to;increase revenue from this profitable aspect of his business. He needs to have repair capability at each;store to maintain the rentals, prepare the new bikes for sale, and perform the;periodic maintenance for the bikes that he has sold, as well as provide the;breakdown repairs and adjustments for the riders on the Trail.;In an effort to increase;profits, Ted tries to get good deals from his suppliers so he can realize a good;margin on bike and accessory sales and repairs.;He looks for situations where suppliers have more bikes in a line than;they need and buys those bikes at a discount for rentals and low-end sales;while maintaining a rapport with high end suppliers so that he can offer his;customers the best at reasonable prices.;By doing so, he can sell bikes at a lower retail price with on-the-spot;delivery while still realizing a nice profit.;Ted has no bank debt;and has long since repaid the $4,000 he borrowed from his friend to start the;business. He feels that, because he has;a diverse business strategy that addresses the many different aspects of the;local bike business, he will do well in the many different economic climates as;long as he is able to manage his varied business. He also feels that he is insulated from;?substitutes? from the Electronic world, due to the rental and repair aspects;of his business.;Questions;List;3;strategic goals for Ted?s business and provide an explanation of each.;Identify 5specific;types or categories of information that Ted needs to run his business and explainwhy they are important to;him.;Identify and explain;three business processes that;Ted likely uses in his business and;explain how a technology solution could help each one of them.;Ted;has a website with information about his stores. Identify;and explain two additional;ways Ted could use the internet in his business. Tie;each use to a specific e-commerce business model and explain how that model applies.;Explain;to Ted what a supply chain;management (SCM) system could do for his business and how it might improve his operations. Be sure to cover the full range of SCM functionality as;it applies to Old Dominion Trail Bikes.;How;could Ted combine the information he gets from in-store customers with;those who purchase via the website into a single Customer Relationship;Management (CRM) system and what;three benefits would he gain from doing so?;Ted;would like to increase repair work and rentals as they are the highest;profit aspects of his business and the Internet is not a competitor. What are three specific ways he could use technology to accomplish;this?;Monitor;customer preventive maintenance and repair work and offer special;maintenance programs and rates to previous customers. Ted is not sure if;he should implement an Enterprise Resource Planning (ERP) solution. Identify;and explain three benefits;to an ERP for Old Dominion Trail Bikes.;Identify and explain two;important considerations in implementing an ERP.;Benefits;Considerations;If;Ted implements an ERP for Old Dominion Trail Bikes, he will need to know;whether the project was a success. List and explain three metrics (or measures) he can;use to determine whether the project was a success.;Since;neither Ted nor anyone on his staff has any experience with information;technology, list and explain five things he should consider or address as;he proceeds with his IT projects.


Paper#36434 | Written in 18-Jul-2015

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