Kathmandu University School of Management

(KUSOM)

Dirt Bike USA Running Case

Assignment Submitted to:

Mr. Sanjay Pudasaini

Faculty (KUSOM)

(in partial fulfillment of the requirements for the)

Management Information System (MAS 511)

Submitted by:
Aakarsha Maharjan (20120)

MBA Fall 2020

15th May 2021

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Q. How do you know what information systems are really needed by a business and which
are the most important? How should a company’s structure or culture affect the building
and use of information systems?

Many businesses deal with massive quantities of data. Data is a set of basic values or information
that is stored in a database. Many people mistakenly believe that data and knowledge are the same
thing; however, information is data that has been organized to help answer questions and solve
problems. An information system is software that aids in the organization and analysis of data. As
a result, the goal of an information system is to transform raw data into usable information that
can be used to make decisions in a company.

In today's rapidly changing and fast-paced world, where consumers' requirements and demands
are constantly changing, the only companies that can hope to stay competitive and perform at
levels that meet their customers' needs are those that embrace innovation. In the recent past, every
business's performance was measured by the quality of information technology it employed and
its ability to correctly use that information. Each information system targets a specific issue and
audience in different organizations. A business should choose Information System which helps in
the day to day activities and helps to achieve goals and objectives of the organization. The
information system should be aligned with the strategy of the organization. For E.g.: If the
company has a strategy to maintain best customer relationship, the company can focus on
Customer Relationship Management (CRM).

Following are some of the important information systems:

Operation Support Systems:

 Transaction Processing Systems

 Process Control Systems
 Enterprise Collaboration Systems
Management Support Systems:

 Management Information Systems

 Decision Support Systems
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 Executive Information Systems

Other Systems:

 Expert Systems
 Knowledge Management Systems
 Strategic Information Systems

An organization's culture defines the proper way to behave within the organization. This culture
consists of shared beliefs and values established by leaders and then communicated and reinforced
through various methods, ultimately shaping employee perceptions, behaviors and understanding.
Organizational culture sets the context for everything an enterprise does. Organization culture has
a strong influence on information systems development and implementation. The identification
and understanding of meanings, norms and power in organizations is an important consideration
when developing and implementing an information system.

Organizational culture, on the other hand, is a powerful impediment to change, especially

technological change. Many businesses would go to great lengths to avoid making fundamental
assumptions adjustments. Any technological transition that challenges widely held cultural
assumptions is generally met with fierce opposition. However, there are occasions when using a
modern technology that explicitly contradicts an established corporate culture is the only sensible
way for a company to move forward. When this happens, technology also becomes stalled as the
society changes.
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Dirt Bikes USA

Dirt Bikes USA is a small company based in Carbondale, Colorado that produces and sells off-
road motorcycles under its own name. It began in 1994 with the aim of creating dirt bikes that
could be customized for racing and off-road recreational riding using the highest quality
components and parts from around the world.

Company's Goal:

To build a manufacturing facility capable of mass-producing dirt bikes for the retail market, and
to design and build bikes that outperform and look better than the competition by incorporating
the best custom parts available.

Company’s Culture:

The business maintains a warm, family environment that promotes collaboration, attention to detail
and quality, as well as ongoing learning and innovation. Dirt Bikes employees, dealers, and retail
customers are encouraged to submit suggestions for how to develop the company's goods and
services.

Product and Services:

Dirt bike racing has many forms, including races for various bike sizes, short distances, long
distances, and even races lasting up to six days. Motocross bikes are specifically designed for
racing in an enclosed dirt course that can include a variety of terrains such as uphill, downhill,
corners, hurdles, and so on. Enduro bikes are for cross-country racing, and motocross bikes are for
racing in an enclosed dirt course that can include a variety of terrains such as uphill, downhill,
corners, jumps, and so on. Following are the products available:

Product Price

Enduro 250 $3250

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Enduro 550 $7600

Moto 300 $4295

Moto 450 $8995

The two Enduros are endurance racers, while the Motos are for motocross. Both are very up to
date, with features such as electric and kick starts, steering stabilizers, and liquid cooling.

Sales and Distribution:

Dirt Bikes does not sell directly to consumers, instead depending on a network of 40 distributors
based in the Western and Midwestern US. In Europe, a small percentage of Dirt Bikes are
distributed by independent dealers who also distribute other brands of dirt bikes and motorcycles.
Only certified Dirt Bikes dealers can purchase Dirt Bikes motorcycles, parts, and service, including
warranty repairs. A registered dealer must manage all motorcycle and spare part sales, delivery,
and set-up.

Organization Chart and Employees:

Carl serves as CEO of Dirt Bikes USA, while Steven serves as President and Chief Operating
Officer. Around 120 people work in design, engineering, and development, including three full-
time product designers and developers, four people in the parts department, ten people in the
service department, and one person in customer service. In the shipping and receiving section,
there are 5 staff, and there are 5 sales representatives. A controller, one accountant, two HR staffs,
three secretariats, and IT specialists make up the corporate administrative staff.
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There are no clear management levels as the company’s atmosphere is a friendly family one; only
that Carl and Steven are the heads of the company. Employees, distributors, and retail customers
are urged to contribute ideas on how to improve Dirt Bikes’ products and service.

Information System and Technologies:

Following are the information system that would be important for the companies such as Dirt bike:

Sales Management System: An information system that manages and monitors all of the sales
and marketing data in an organization to streamline each step of the sales process. It is easier to
track which products are selling and which product requires more marketing.

Transaction Processing System: Transaction processing systems TPS handles all of the customer
and employee transaction data so an organization can streamline workflows and easily retrieve the
required information. TPS for inventory would be useful as they will know which parts are running
low in the inventory.

Customer Relationship Management: A CRM system helps companies stay connected to

customers, streamline processes, and improve profitability as one of its key responsibilities is to
aggressively promote Dirt Bikes at dirt bike racing and other events.

Supply Chain Management System: Supply chain management systems are integrated
partnerships among all links in the flow of goods and services to the customer. The company brings
their goods from various suppliers and they provide their products to the dealers. The engines for
Dirt Bikes are Rotax engines from Austria and tires are from Dunlop, but many of their parts, such
as shock absorbers, front wheel forks, exhaust pipes, and headlights, are from the United States.
Dirt Bikes makes its own frames, shaping them to give them the unique spirited style for which
the company is noted.

Besides these systems the company can also have Office Automation Systems, Management
Information Systems, Decision Support Systems, Executive Support System, Enterprise Resource
Planning and Human Resource information system if it is feasible.
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Best and worst-performing products:

From 2010 to 2014, the bar chart depicts sales by model, which include the Enduro 250, Enduro
550, Moto 300, and Moto 450. The best performing model is the Enduro 550, while the worst
performing product is the Moto 450. Over a five-year period, sales of the Enduro 550 steadily
increase. In the meantime, sales of the Moto 450 have increased significantly.

Sales by Model
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2010 2011 2012 2013 2014

Enduro 250 Enduro 550 Moto 300 Moto 450

Domestic and International sales:

Total Domestic Sales (2010 to 2014) 38239

Total International Sales (2010 to 2014) 3730

Proportion of Domestic to international 38239 / 3730 = 10.2517

The domestic sales are increasing at a faster rate than foreign sales. Domestic and International
sales were seen in a line graph from 2010 to 2014. Overall, domestic sales increased significantly
over the previous four years before declining marginally last year. International sales, on the other
hand, fluctuated just significantly over time. Domestic and international sales also rise from 2010
to 2014, but international sales do not increase as much as domestic sales.
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Domestic and International Sales

10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2010 2011 2012 2013 2014

Domestic International

Cost of goods sold compared to revenues:

The Enduro 250, Enduro 550, Moto 300, and Moto 450 are the four versions of dirt bikes available
for purchase. From 2010 to 2013, sales of this model increased gradually, but between 2013 and
2014, sales dropped by $486. When comparing profits to the cost of goods sold, the cost of goods
rises more slowly and the rate of growth is more consistent. In 2013, the rate of goods sold
increased by about 5.07 percent, and it increased by about 6.21 percent in 2014. As a result, from
2013 to 2014, the cost of goods sold has risen last year.

Cost of goods sold

2014 2013 2012

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Are the firm’s gross and net margins increasing or decreasing? Are the firm’s operating
expenses increasing or decreasing?

In 2012 and 2013, the firm's gross increased by around 33%, and in 2014, it increased by about
23%. In comparison to 2012 and 2013, net margins increased in 2012 and 2013, but decreased in
2014. In 2013 and 2014, operating expenses are also on the rise.

Total Operating Expenses

12,000

10,000

8,000

6,000

4,000

2,000

0
Total operating expenses

2014 2013 2012

Is the firm heavily in debt? Does it have assets to pay for expenses and to finance the
development of new products and information systems?

The dirt bike isn't deeply in debt because the total amount of liabilities exceeds the total amount
of assets by less than 50%. As a result, this business has sufficient funds to cover costs and fund
the production of new products and information systems.
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Use the Internet to locate alternative suppliers for motorcycle fuel tanks. Identify two or
three suppliers. Find out the amount of time and cost to ship a fuel tank (weighing about five
pounds) by ground (surface delivery) from each supplier to Dirt Bikes in Carbondale,
Colorado. Which supplier is most likely to take the shortest amount of time and cost the least
to ship the fuel tanks?

Following are the alternative suppliers for motorcycle fuel tanks:

Harris European Model Accessories: This Company sells aluminum fuel tanks, but they're very
pricey, ranging from $790 to $1,680. Furthermore, no one is permitted to place an order over the
Internet by the company. Instead, an individual must place an order by phone or fax. As a result,
shipping information is not available on the Internet.

Cycle Stuff USA: The cost per unit is $189.99, which includes sales tax and delivery. They were
built and tested by the best drivers, according to the company, and have been proven to be durable
and reliable. They demand shipment from the warehouse nearest to the destination within two
days. It will not, under any conditions, take more than 30 days to arrive.

ATV Motorcycle Parts: The cost of their fuel tanks ranges from $89.50 to $169.50. One tank cost
$10.92 to ship to Carbondale, Colorado. UPS ground shipping is the most cost-effective option.
Although the delivery time is not specified, this method of delivery normally takes three to four
days. The gas tanks are made of plastic to prevent corrosion, while other companies' tanks are
made of aluminum or other high-tech materials.
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Dirt Bikes’s management would like to know if there is any supply chain management
software for a small business that would be appropriate for Dirt Bikes. Use the Internet to
locate two supply chain management software providers for companies such as Dirt Bikes.
Briefly describe the capabilities of the two software applications and indicate how they could
help Dirt Bikes. Which supply chain management software product would be more
appropriate for Dirt Bikes? Why?

Following are the best supply management software that would be appropriate for Dirt Bikes:

ANVYL: Anvyl is a cloud-based supply chain relationships management platform. It exists to

enhance real-time visibility while providing teams with the automation and collaboration features
they need to increase output, optimize their processes, and grow their businesses. Anvyl is easy to
use, fast to implement in 24 Hours, and scalable as the business grows.

The Basic Plan, suited for smaller businesses, comes with a wide variety of features, including:

 A parts library and a supplier directory

 Purchase order issuing, cloning, and management
 Automated check-ins with suppliers to track progress
 A supplier portal for collaboration and file sharing
 Unlimited collaboration seats for buyers, suppliers, and third-parties
 Full API access to create a fully customized solution
The software could help Dirt Bike as the software has fantastic time-saving feature for companies
who want or need to rapidly develop new supplier relationships while still managing inventory.

The Anvyl also has powerful search bar to pre-fill purchase orders using historical data, automate
check-ins and follow-ups with suppliers, and find what you need in seconds. Even on the lowest
tier, the company can get everything needed to get your company ready for long-term growth.

Magaya: Magaya is an end-to-end supply chain management solution for transportation and
logistics service providers, including freight forwarders, third-party logistics firms, carriers, and
importing/exporting businesses. It's a cloud-based solution that doesn't need any maintenance or
existing infrastructure, making it extremely simple to use and manage. It's accessible from
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anywhere with an internet connection, and thanks to its familiar, user-friendly interface, it's simple
to use.

It is suitable for the company like Dirt Bike as it comes with features including freight quotes and
booking, inventory tracking, ecommerce order fulfillment capabilities, automatic replenishment,
local pick-ups, and more, Magaya is easily one of the most feature-rich supply chain management
tools on this list. Some of the features are as follows:

 A mobile app that delivers service, visibility, and tracking to your customers
 Photo capturing to send photos to your system in seconds
 Warehouse automation for cargo photos, dimensions, and weight
 U.S. customs compliance to turbocharge the brokerage process
 Air, ocean, and courier integrations (like FedEx, USPS, and UPS)
 Accounting automation to sync customer billing data
 Cargo insurance functionality

Anvyl would be be more appropriate for Dirt Bikes than Magaya since the software has feature of
EDI, Import/Export Management, Inventory Management, Order Fulfillment, Sales & Operations
Planning, Shipping Management, Supplier Management and Transportation Management. The
software includes more features than Magaya like sales and operation planning which is not found
in the Magaya. The software can help in sales and operation planning of the dirt bikes. The review
is also higher which are as follows

Anvyl Magaya

Ease of use 4.4 4.4

Customer Service 4.6 4.0

Features 4.0 4.1

Value of Money 4.5 3.6

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References:

https://eternalsunshineoftheismind.wordpress.com/2013/02/19/common-types-of-information-
systems/

http://www.motorcycleguide.net/

https://www.crazyegg.com/blog/best-supply-chain-management-software/