Finance and Accounting

Finance and Accounting

analysis of cost structure

Business Overview

Global Bike International (GBI) is a world class bicycle company serving both professional and amateur cyclists. The company sells bicycles and accessories. In the touring bike category, GBI’s handcrafted bicycles have won numerous design awards and are sold in over 10 countries. GBI’s signature composite frames are world-renowned for their strength, low weight and easy maintenance. GBI bikes are consistently ridden in the Tour de France and other major international road races. GBI produces two models of their signature road bikes, a deluxe and professional model. The key difference between the two models is the type of wheels used, aluminium for the basic model and carbon composite for the professional model.

GBI’s off-road bikes are also recognized as incredibly tough and easy to maintain. GBI off-road bikes are the preferred choice of world champion off road racers and have become synonymous with performance and strength in one of the most gruelling sports in the world. GBI produces two types of off-road bike, a men’s and women’s model. The basic difference between the two models is the smaller size and ergonomic shaping of the women’s frame.

GBI also sells an Accessories product line comprised of helmets, t-shirts and other riding accessories. GBI partners with only the highest quality suppliers of accessories which will help enhance riders’ performance and comfort while riding GBI bikes. Figure 1 displays the GBI range of products.

Traditionally GBI was a wholesaler who sold their bikes to retailers who then resold the bikes to the end consumers. Recently GBI has decided to sell their bike to the end consumer via the Internet.

Organizational Structure

GBI’s headquarters are located in Dallas and the European subsidiary company (GBI Europe) is based in Heidelberg, Germany. In regards to the GBI sales process there are two sales organisations for America (Eastern US and Western US) and two for Germany (Northern Germany and Southern Germany). All sales organisations have a wholesale distribution channel responsible for delivering the products to the customers. However only one sales organisation is required in each country to support internet sales. Figure 2 below displays the GBI organisation (in SAP terminology) to support the sales process.

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Please analysis the cost structure in three part: Regional Analysis, Distribution Channel Analysis , and Material Group Analysis .

Last Updated on February 10, 2019 by EssayPro