Introduction to Dirt Bikes
Dirt Bikes USA is a small company headquartered in Carbondale Colorado that manufactures
and sells its own brand of off-road motorcycles. It was founded in 1994 to produce dirt bikes that
could be customized for racing and off-road recreational riding—using the best quality
components and parts from all over the world. The company has continued to grow and now
faces a new set of challenges and opportunities. You have been asked to serve as a consultant to
apply your information systems knowledge to help Dirt Bikes solve some of the problems it is
encountering.
Company History and Background
Dirt Bikes USA was founded in 1994 by Carl Schmidt and Steven McFadden, two young but
experienced bikers with engineering backgrounds who saw that dirt bikes were becoming very
popular in the United States as both sporting and racing motorcycles. They developed frames for
dirt bikes that were more suited to off-road handling. They started using these frames to build
their own dirt bike models using motorcycle engines manufactured by other companies, such as
Honda and Rotax Motors of Austria. Riding on one of their customized dirt bikes, Steven
finished first in the famous Barstow to Las Vegas race. There was so much interest in Carl and
Steve’s bikes that they decided to open a production facility that could manufacture large
numbers of their dirt bikes for the retail market. They opened a small production facility in
Carbondale which has since expanded to house 120 workers involved in production, design, and
engineering—and a corporate sales and administrative staff of close to 20 employees. Over the
years Dirt Bikes USA has enhanced and expanded its product line to include dirt bike models
optimized for racing and off-road recreational use. Its racing models have placed well, and often
first, in the many dirt bike races staged throughout the United States, including the Barstow-Las
Vegas race and competitions at Daytona Bike Week.
Organization Chart and Employees
Dirt Bikes USA is still privately owned, with Carl serving as CEO and Steven as President and
Chief Operating Officer. About 120 employees work in design, engineering and production,
including three full-time product designers and three engineers. In addition to a four-person Parts
Department, Dirt Bikes maintains a ten-person Service Department to service warranties and
customer problems with parts and motorcycle performance. Five employees work in Dirt Bikes’
Shipping and Receiving Department. The sales staff consists of a marketing manager and five
representatives, two for the West coast and Western United States, one for the Midwest, one for
the Northeast, and one for the South. The corporate administrative staff has one controller, one
accountant, one administrative assistant, two human resources staff members, three secretaries,
and two information systems specialists to support systems servicing all of the business
functional areas. The data file "Dirt Bikes USA Organization Chart" shows Dirt Bikes’
organization chart.
The company maintains a friendly, family atmosphere which encourages teamwork, attention to
detail and quality, and continuous learning and innovation. Employees, distributors, and retail
customers are urged to contribute ideas on how to improve Dirt Bikes’ products and services.
Products and Services
Dirt Bikes’ founders and wanted to capitalize on their proximity to the dirt bikes racing circuit
and market in the United States. Carl and Steve hoped they could develop bikes that outperformed and looked better than the competition by using the best custom parts available.
Realizing that the most popular dirt bikes were foreign brands, Dirt Bikes does not hesitate to use
quality components from all over the world, such as 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. The Company makes its own frames, shaping them in
the unique, spirited style for which Dirt Bikes is noted.
Manufacturing and selling dirt bikes is a complex business. Dirt bike racing has many different
categories, including races based on a variety of bike sizes and race length (with some lasting as
long as six days). Enduro bikes are for cross-country racing. Motocross bikes are specially
designed for racing in an enclosed dirt course that can consist of a variety of terrains; uphill,
downhill, corners, jumps, and so forth. Dirt Bikes currently produces four models; the Enduro
250, the Enduro 550, the Moto 300, and the Moto 450. The two Enduros are endurance racers,
while the Motos are for motocross racing. All four are very modern, incorporating technologies
such as kick and electric starters, steering stabilizers, and liquid cooling. The large majority of
these bikes are sold in the United States and cost between $3,250 and $9000 retail (the Enduro
250 retails for $3250, the Enduro 550 for $7600, the Moto 300 for $4295 and the Moto 450 for
$8995.) Dirt Bikes appeals primarily to serious trail and Enduro riders, although it is making
inroads into the motocross market.
Sales and Marketing
Dirt Bikes does not sell directly to retail customers. It relies on a network of 40 distributors
concentrated in the Western and Midwestern United States. A small percentage of Dirt Bikes are
sold in Europe using independent distributors that sell other brands of dirt bikes and motorcycles
as well. Dirt Bikes’ motorcycles, parts, and service (including warranty repairs) can be obtained
only through an authorized Dirt Bikes dealer. All motorcycle and spare parts sales, shipping, and
set-up must be handled by a certified dealer. If a potential customer lives more than 50 miles
from the nearest authorized Dirt Bikes dealer, the customer can purchase a Dirt Bike or Dirt Bike
parts through a certified independent motorcycle dealer. Retail customers can purchase spare
parts directly from Dirt Bikes only by verifying that they live more than 50 miles from an
authorized Dirt Bikes dealer.
Dirt Bikes’ sales department works closely with Dirt Bikes’ distributors. One of its key
responsibilities is to aggressively promote Dirt Bikes at dirt bike racing and other events. Many
Dirt Bikes employees are dirt bike racing enthusiasts themselves. Several are official company
racers representing the company in dirt bike racing competition. Dirt Bikes recently established a
Dirt Bikes USA Owners’ Group to promote stronger relationships with customers, and to make it
easier for them to share their Dirt Bikes USA experiences. Dirt Bikes also advertises in
magazines devoted to motorcycle racing and dirt bikes. It uses a small public relations firm to
place articles about new company products or racing victories in these magazines. Dirt Bikes
also pays for ads in these publications.
Purchase answer to see full
attachment