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C216 MBA Capstone Task 2- CYKLE
Western Governors University
Table of Contents
Balanced Scorecard .................................................................................................................................... 1
Stockholder Report ..................................................................................................................................... 2
B1: Corporate Strategic Thrusts ............................................................................................................... 2
B2A: Decisions to Be Changed ................................................................................................................ 3
B2B: Decisions with a Positive Effect ...................................................................................................... 4
C1: Calculated Valuation .......................................................................................................................... 4
C2: Projected ROI..................................................................................................................................... 6
Business Analysis ........................................................................................................................................ 7
D1: Analysis of Ratios .............................................................................................................................. 7
D2: Cash Flow from Operating Activities ................................................................................................ 9
D3: Conscious Scorecard Decisions ....................................................................................................... 11
E: Sources ................................................................................................................................................... 14
Balanced Scorecard
A Cumulative Balanced Score Card and Conscious Scorecard Report are attached to this
report.
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Stockholder Report
During quarter one, a development phase, we selected four corporate strategic thrusts
including focuses on: long-term perspective – deferring profits in order to build a strong
competitive position; risk-taker – willing to take chances to get ahead; pioneer – first to market
to get ahead; and selecting five top competitive forces which included, (1) superior customer
value, (2) selective distribution (develop markets with greatest potential), (3) superior
manufacturing – high reliability and efficiency, (4) willing to partner with competitors and
suppliers, and (5) embrace conscious capitalism.
B1: Corporate Strategic Thrusts
These thrusts drove both financial and non-financial decisions over the course of six
quarters. Among these, competitive forces - superior manufacturing and pioneering the market
were two thrusts that drove our financial decisions. Providing superior manufacturing requires an
elevated level of intelligence and innovation. The cliché “you get what you pay for” was a nice
reminder that excellence is not “affordable” and requires a substantial amount of high-level
financial planning and execution to provide superior manufacturing. One decision was made
under the categories of research and development (“R&D”) and System Improvements. The
combined total cost of R&D and system improvements in quarter four (“Q4”) through quarter six
(“Q6”) was $4,396,858. This created a need for 2.5-million-dollar venture capital funds.
Another financial decision that was thrust forward with the actions of Cykle being a
pioneer – first to enter a market. In addition to the venture capital funding, we required a
conventional bank loan to offset our R&D and system improvement costs. With this need we
took out a $2 million conventional loan with the intent of repayment during Q6. This proved to
C216 MBA Capstone Task 2- CYKLE
Western Governors University
Table of Contents
Balanced Scorecard .................................................................................................................................... 1
Stockholder Report ..................................................................................................................................... 2
B1: Corporate Strategic Thrusts ............................................................................................................... 2
B2A: Decisions to Be Changed ................................................................................................................ 3
B2B: Decisions with a Positive Effect ...................................................................................................... 4
C1: Calculated Valuation .......................................................................................................................... 4
C2: Projected ROI..................................................................................................................................... 6
Business Analysis ........................................................................................................................................ 7
D1: Analysis of Ratios .............................................................................................................................. 7
D2: Cash Flow from Operating Activities ................................................................................................ 9
D3: Conscious Scorecard Decisions ....................................................................................................... 11
E: Sources ................................................................................................................................................... 14
Balanced Scorecard
A Cumulative Balanced Score Card and Conscious Scorecard Report are attached to this
report.
, 2
Stockholder Report
During quarter one, a development phase, we selected four corporate strategic thrusts
including focuses on: long-term perspective – deferring profits in order to build a strong
competitive position; risk-taker – willing to take chances to get ahead; pioneer – first to market
to get ahead; and selecting five top competitive forces which included, (1) superior customer
value, (2) selective distribution (develop markets with greatest potential), (3) superior
manufacturing – high reliability and efficiency, (4) willing to partner with competitors and
suppliers, and (5) embrace conscious capitalism.
B1: Corporate Strategic Thrusts
These thrusts drove both financial and non-financial decisions over the course of six
quarters. Among these, competitive forces - superior manufacturing and pioneering the market
were two thrusts that drove our financial decisions. Providing superior manufacturing requires an
elevated level of intelligence and innovation. The cliché “you get what you pay for” was a nice
reminder that excellence is not “affordable” and requires a substantial amount of high-level
financial planning and execution to provide superior manufacturing. One decision was made
under the categories of research and development (“R&D”) and System Improvements. The
combined total cost of R&D and system improvements in quarter four (“Q4”) through quarter six
(“Q6”) was $4,396,858. This created a need for 2.5-million-dollar venture capital funds.
Another financial decision that was thrust forward with the actions of Cykle being a
pioneer – first to enter a market. In addition to the venture capital funding, we required a
conventional bank loan to offset our R&D and system improvement costs. With this need we
took out a $2 million conventional loan with the intent of repayment during Q6. This proved to
