Introduction
Ibrahim Village Cycle is a bicycle business owned by Ibrahim. This is a local bicycle sales
and repair shop. Ibrahim wants to expand his business, and for the expanded business has
the aim of increasing revenue and profit. He has two options to choose from: 1. Move his
existing business to larger premises and sell an expanded product range or 2. Open an
additional bicycle sales and repair shop in a different location.
Current business and market trends
Between 2022 and 2019, there has been a notable increase in the number of adults who
cycle per week. Cycling is the most popular sport in the UK, partly due to the success of
famous riders who won the Olympics. There victories largely encouraged people to start
cycling. Another increase in cycling is due to the environmental benefit, that has allowed for
carbon free travel. There is an increasing trend to look after the environment, that has led to
more people opting to use transportation that contributes either less carbon into the air.
This is an important trend that plays into the expansion of Ibrahim’s business, more people
taking up an interest in cycling means potentially more revenue for the business.
The largest growth segment for bicycles are: the recreational users- these are those who
cycle for leisure or family rides, sporting enthusiasts – agaed between 35-50 years old and
are motivated by challenging rides. This is information on the market is important because it
shows just how large Ibrahim’s target market is, from small children to full grown adults.
According to forecasts, an average of 3 million bicycles are to be purchased each year
between 2024 and 2026. The market value being and estimated £2.216 billion by 2026. The
market is increasingly growing and this will help Ibrahim with his expansion, as there is more
demand in the market. In addition, a survey revealed that 87% of cyclists planned to either
maintain or increase their spending on bicycles and equipment, this is important information
for Ibrahim to be aware of in case he wants to increase the of the bicycles and equipment he
sells. There are 4 main bicycle types that were mostly owned by consumers: children’s bikes,
mountain – 32%, road – 25% and hybrid – 19%. Ibrahim can use this information to his
advantage, he can decide to increase the prices of these specific bicycles as they are the
most desired ones and consumers are not likely to purchase them less because of increased
prices.
The market is an monopoly, this means that it is dominated by one major business. This is
Halfords, which operates on a national scale and has over 20% of the market share. Other
competitors within the market include: Evans Cycles, Tredz, Wiggle and Wheelbase. Hence,
the market is very competitive. Ibrahim Village Cycles is operating in a competitive market.
ELECTRIC BIKES – OPTION 1
Resource Implication
Human Resources
, Human resources are a group of people who work in a business. They are important to
the business and majorly contribute to productivity, efficiency and quality of work. Within
human resources, there is: recruitment, training, renumeration and flexibility. This will be
used to analyse both options.
Option 1
For this Option, Ibrahim intends to move his existing business to larger premises and sell
and expanded product range. Ibrahim cannot handle all the repair and servicing by himself,
so he plans on employing a technician and other employees to pack and ship orders. The
implication of this is: he will have to go through the recruitment and selection process – he
has already known the position that he plans to fill, but will have to advertise the job
position, interview applicants, review their applications and eventually selecting an
individual fit for the job. Due to the fact that he is hiring a new employee, he may need to
invest into training and development. From this analysis alone, it is evident that this Option
will have an impact on finance. He may have to spend more to hire and train an employee.
In addition, advertising takes time and money depending on how the position is advertised
and training will add onto costs for example, off the job training – Ibrahim will need to pay
for training materials, instructors, travel expenses and any other costs involved. Health and
Safety for the employee must be maintained – making sure that the place of work is
appropriate and is a suitable working environment. Lastly, equal opportunities – treating the
employee fairly and making sure the recruitment process is non-discriminatory
Option 2
Within this Option, Ibrahim will be opening an additional bicycle sales and repair shop in
a different location. He would need to employ a full-time sales person to manage and run
the shop. Similarly to Option 1, the implication of this is: he will have to go through the
recruitment and selection process – he is aware of the position to be filled, so he will have to
advertise the job position, interview applicants, review their applications and eventually
selecting an individual fit for the job. He will be hiring a new employee, because of this he
may also need to invest into training and development – especially because this position
requires greater skills and commitment. The full-time salesperson would need to manage
and run the shop and would also need to be able to repair bicycles. Ibrahim must be careful
when hiring an employee to fit this role. It will be time consuming and it would have an
added impact on costs, because of the advertisement costs and possible training and
development costs. Health and safety must be maintained, along with equal opportunities
for the employee.
Ibrahim Village Cycle is a bicycle business owned by Ibrahim. This is a local bicycle sales
and repair shop. Ibrahim wants to expand his business, and for the expanded business has
the aim of increasing revenue and profit. He has two options to choose from: 1. Move his
existing business to larger premises and sell an expanded product range or 2. Open an
additional bicycle sales and repair shop in a different location.
Current business and market trends
Between 2022 and 2019, there has been a notable increase in the number of adults who
cycle per week. Cycling is the most popular sport in the UK, partly due to the success of
famous riders who won the Olympics. There victories largely encouraged people to start
cycling. Another increase in cycling is due to the environmental benefit, that has allowed for
carbon free travel. There is an increasing trend to look after the environment, that has led to
more people opting to use transportation that contributes either less carbon into the air.
This is an important trend that plays into the expansion of Ibrahim’s business, more people
taking up an interest in cycling means potentially more revenue for the business.
The largest growth segment for bicycles are: the recreational users- these are those who
cycle for leisure or family rides, sporting enthusiasts – agaed between 35-50 years old and
are motivated by challenging rides. This is information on the market is important because it
shows just how large Ibrahim’s target market is, from small children to full grown adults.
According to forecasts, an average of 3 million bicycles are to be purchased each year
between 2024 and 2026. The market value being and estimated £2.216 billion by 2026. The
market is increasingly growing and this will help Ibrahim with his expansion, as there is more
demand in the market. In addition, a survey revealed that 87% of cyclists planned to either
maintain or increase their spending on bicycles and equipment, this is important information
for Ibrahim to be aware of in case he wants to increase the of the bicycles and equipment he
sells. There are 4 main bicycle types that were mostly owned by consumers: children’s bikes,
mountain – 32%, road – 25% and hybrid – 19%. Ibrahim can use this information to his
advantage, he can decide to increase the prices of these specific bicycles as they are the
most desired ones and consumers are not likely to purchase them less because of increased
prices.
The market is an monopoly, this means that it is dominated by one major business. This is
Halfords, which operates on a national scale and has over 20% of the market share. Other
competitors within the market include: Evans Cycles, Tredz, Wiggle and Wheelbase. Hence,
the market is very competitive. Ibrahim Village Cycles is operating in a competitive market.
ELECTRIC BIKES – OPTION 1
Resource Implication
Human Resources
, Human resources are a group of people who work in a business. They are important to
the business and majorly contribute to productivity, efficiency and quality of work. Within
human resources, there is: recruitment, training, renumeration and flexibility. This will be
used to analyse both options.
Option 1
For this Option, Ibrahim intends to move his existing business to larger premises and sell
and expanded product range. Ibrahim cannot handle all the repair and servicing by himself,
so he plans on employing a technician and other employees to pack and ship orders. The
implication of this is: he will have to go through the recruitment and selection process – he
has already known the position that he plans to fill, but will have to advertise the job
position, interview applicants, review their applications and eventually selecting an
individual fit for the job. Due to the fact that he is hiring a new employee, he may need to
invest into training and development. From this analysis alone, it is evident that this Option
will have an impact on finance. He may have to spend more to hire and train an employee.
In addition, advertising takes time and money depending on how the position is advertised
and training will add onto costs for example, off the job training – Ibrahim will need to pay
for training materials, instructors, travel expenses and any other costs involved. Health and
Safety for the employee must be maintained – making sure that the place of work is
appropriate and is a suitable working environment. Lastly, equal opportunities – treating the
employee fairly and making sure the recruitment process is non-discriminatory
Option 2
Within this Option, Ibrahim will be opening an additional bicycle sales and repair shop in
a different location. He would need to employ a full-time sales person to manage and run
the shop. Similarly to Option 1, the implication of this is: he will have to go through the
recruitment and selection process – he is aware of the position to be filled, so he will have to
advertise the job position, interview applicants, review their applications and eventually
selecting an individual fit for the job. He will be hiring a new employee, because of this he
may also need to invest into training and development – especially because this position
requires greater skills and commitment. The full-time salesperson would need to manage
and run the shop and would also need to be able to repair bicycles. Ibrahim must be careful
when hiring an employee to fit this role. It will be time consuming and it would have an
added impact on costs, because of the advertisement costs and possible training and
development costs. Health and safety must be maintained, along with equal opportunities
for the employee.
