Faculty of Business and Law
Assignment Brief Academic Year 2017/18
This assignment is designed to assess learning outcomes:
ILO1: Identify and organise credible sources of data and information
ILO: Critically evaluate information to support decision making
ILO3: Appraise results of the decision-making process
ILO4: Assess and critically evaluate the range of tools and techniques available as support for managerial decision making This assignment is an individual assignment.
Pashley Cycles, a British bicycle manufacturer wishes to identify an export market as part of its growth strategy. Three possible markets have been identified: Germany, India and Brazil. Assume the role of management consultant to the company and write a report which examines each of these options.
You should review data, evaluate factors in the decision-making process and apply decision-making tools and techniques. Your report has to make recommendations to the company and these should be fully justified.
The word count is 2,500 words. There will be a penalty of a deduction of 10% of the mark (after internal moderation) for work exceeding the word limit by 10% or more. The word limit includes quotations, but excludes the bibliography.
Please note: you MUST NOT contact the company as part of this exercise.
Weighting of Marks
Marks will be weighted as follows:
Nature of the topic/s – 20%
Sources Consulted – 20%
Analysis and Discussion – 40%
Conclusions and Recommendations – 10%
Presentation and References – 10%
Pashley was established in 1926 in Birmingham and is the UK’s longest established cycle manufacturer.
Pashley designs and manufactures traditional bicycles, carrier cycles, tricycles and accessories. It currently offers about 160 products and supplies between 8,000 and 10,000 bikes each year (Financial Times 2016).
All cycles are hand-built at the company’s facility located in in Stratford-upon-Avon, Warwickshire. There are approximately 50 people employed at the factory.
The company does not publish financial figures but annual turnover is in the region of £5 million (Financial Times 2016).
Women’s bikes account for half the company’s sales.
75%-80% of sales are in the traditional segment.
The company has two divisions: Business to Business sales (B2B) and Business to Consumer (B2C). 95% of consumer sales are through distributors.
Over the last 5-6 years, export turnover has increase from 15% to 45%.
The company currently exports to 47 countries and has created a distributor network to support this activity.
North and South America, Europe and Far East have all exhibited strong demand.
Notes from class (very important)
Requirement: 2,500 word report
Task: Pashley Cycles, a British bicycle manufacturer wishes to identify an export market as part of its growth strategy. Three possible markets have been identified: Germany, India and Brazil.
Assume the role of management consultant to the company and write a report whichexamines each of these options. You should review data, evaluate factors in the decision-making process and apply decision-making tools and techniques. Your report has to make recommendations to the company and these should be fully justified.
The company wishes to focus on one particular export market as part of its growth strategy
Three potential markets have been identified: Germany, Brazil and India.
You need to provide:
- Values for the Attributes
Good book to use-
Goodwin, P. and Wright, G. (2014) Decision Analysis for Management Judgement. Fifth Edition. Chichester. Wiley
Digital copy can be accessed through Moodle –
Essential Reading – then download
Who buys Pashley cycles?
What are the advantages and disadvantages associated with Pashley cycles?
Who are the company’s competitors?
Identify Possible Attributes
These should help you understand the countries you are considering and may include:
- Distance from the UK
- Household income distribution
- Consumer spending on leisure and recreation
- Political stability
Select attributes following your analysis of the company and its products.
- You need to justify your selection of attributes.
- Choose between four and six attributes.
- How you justify your choice of attribute is more important than the number you choose.
Consumer spending on leisure and recreation by income type in Brazil
Apply Values to SMART
- Once you have gathered the data, you need to amend the values to fit into SMART
- Values in SMART are between 0 and 100.
- Weights are based on your analysis of the importance of the attributes. You will need to justify the weights.
- After you have selected your raw weights, do not forget to normalise them.
You should use the SMART tool
- Assuming six attributes: W1*V1 + W2*V2 + W3*V3 +W4*V4 + W5*V5 + W6*V6 = Total
- Calculate a score for each option
Costs – these can be your estimates based on a company with an annual turnover of £5 million.
- Distributor Management
- Once you have calculated the benefits you need to use costs to plot the cost-benefit graph
- Plot the efficient frontier
- Make a provisional decision
As with any SMART process you should carry out a sensitivity analysis
If necessary use these videos to help you:
Table of Contents
3.SMART – justification for using this tool
6.List of References
Goodwin, P. and Wright, G. (2014) Decision Analysis for Management Judgement. Fifth Edition. Chichester. Wiley.
Janavaras, B.J. and George, S. (2017) Global Marketing Management System.
Singapore. World Scientific Publishing.
Janavaras, B.J., Paladini, S., George, S. (2013) Going Global: A Practical Guide. Harlow. Pearson.
Kavanagh, M. (2011) ‘Pashley Cycles benefits from a renaissance for retro style’ Financial Times. 20 February/
Lasserre, P. (2012) Global Strategic Management. Third Edition. Basingstoke. Palgrave Macmillan.
Organisation for Economic Co-operation and Development (2008) Removing Barriers to SME Access to International Markets. OECD Publishing. Available at http://dx.doi.org/10.1787/9789264045866-en
Wright, R. (2016) ‘Pashley steers growth with new contracts and vintage appeal’ Financial Times. 4 October.