Bike Simulation Flashcards

Customer Needs and Value Hierarchy

• Defines consumer expectations and perceptions regarding services.
• Helps companies prioritize features that fulfill customer expectations.

Match-up Benefits and Features

• Emphasizes alignment between product features and consumer expectations (e.g., speed, comfort).
• Aids in identifying consumer preferences across bike types.

Target Market Segmentation

• Identifies three distinct market segments: Recreational, Mountain, and Speed.
• Companies must focus on a primary target market to effectively develop strategies.
• Involves tailored branding, advertising, and pricing strategy.

Factors Affecting Demand

• Demand influenced by changes in target segments, pricing, advertising, sales force size, and compensation.
• Regular adjustments in brand design and the introduction of new bikes can shift demand.

Demand Curves

• Illustrates the relationship between product price and quantity demanded.
• Essential for understanding consumer buying behavior.

Demand Forecasting

• A strategic process predicting future demand patterns based on multiple factors.
• Critical for planning production and allocating resources effectively.

Pricing and Price Elasticity

• Pricing should reflect market willingness to pay while considering product performance.
• Price elasticity measures consumer sensitivity to price changes; more critical for pricing strategies.

Fixed Capacity vs. Operating Capacity

• Fixed Capacity indicates maximum production output capability.
• Operational capacity reflects actual production capabilities, influenced by resource use and efficiency.
• Overtime can boost production to meet demand surges.

Lean Manufacturing and Just-in-Time

• Focuses on reducing production times and supply chain waste.
• Lean manufacturing enhances efficiency, while JIT emphasizes minimizing inventory and optimizing workflows.

Production Costs and Economies of Scale

• Includes materials, labor, and overhead costs, with materials being the primary cost driver.
• Economies of scale result in reduced production costs as output increases.

Pro Forma Accounting

• Utilizes projected accounting statements to evaluate decision impacts on financial health.
• Serves as a budgeting and forecasting tool to assess cash flow, income, and balance sheets.

Financial Statements

• Consists of balance sheet, income statement, and cash flow statement.
• Essential for monitoring overall business performance and financial status.

Balanced Scorecard

• A comprehensive measure of total organizational performance.
• Provides a key metric for performance evaluation across different companies, available after the first sales quarter.