Developing Financial Decision-Making and Performance Measurements
Gaining Valuable Insights: A significant study for Hometown Bicycles AG. This research delves into key performance indicators, contribution margins, insourcing costs, and licensing fees to improve decision-making.
Nicole Bleuler & Jana Bögli, 2023
Bachelor Thesis, Hometown Bicycles AG
Betreuende Dozierende: Christoph Langenegger
Keywords: Dashboard, KPI, Contribuiton Margin, Licensing Fees, Insourcing costs
For Hometown Bicycles AG, evidence-based decision-making is hardly used due to the lack of the required data. The focus is on creating a dashboard to aid operational planning for the next few years, prioritizing products and analyzing cost units and contribution margins. The revenue is mainly generated through merchant sales, with limited influence on selling. This necessitates analyzing in- and outsourcing options for logistics. Presently, B2C clients in Switzerland buy directly from the online shop and Hometown Bicycles AG sees some potential for process improvement.
A comprehensive literature review on the development of meaningful KPIs, aligned with the company’s long-term strategic goals, was undertaken. A KPI dashboard visually presents real-time results, using traffic light indicators to track progress. The contribution margin for each frame were analyzed, with the excel sheet serving as a versatile instrument for future calculations. Determining costs for potential in-house storage and assembly involved a collaborative approach. Licensing fees were calculated using the cost-plus method, factoring in model development costs and desired profit margins.
The analysis of developed and applied frameworks reveals the importance of input variables as these are crucial for accurate calculation and interpretation of results. During the bachelor thesis several instruments for implementing the used frameworks in the fact-based decision-making process of Hometown Bicycles AG were created. For this, Microsoft Excel was used and provided to Hometown Bicycles AG. Not only were instruments provided but also some conclusion could be drawn from the calculations. Furthermore, a basis for the decision-making on whether to insource assembly and storage or not was established.
Studiengang: Business Administration International Management (Bachelor)
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