BFA701

ENTERPRISE AND
ENTRENRENURSHIP
Cyclexperience: A case study
TABLE OF CONTENTS

EXECUTIVE SUMMARY

1. Introduction
1.2 Scope
1.3 Cyclexperience
1.3.1 Mission Statement and Vision
2. Current Business Position
2.1 PESTEL Analysis
2.2 Competitors
2.3 Porters’ 5 Forces
2.4 Summary of current business position
3 Evaluation of options for business development
3.1 Strategic Choice
3.2 Business Model Canvases and Resource and Capabilities
3.2.1 Business Model Canvas
3.2.2 Resources and Capabilities
3.3 Options
3.3.1 Viable Options
3.4 Recommended option for development
3.4.1 Other options
4 Revised strategic Plan
5 Risks and how to manage these
6 Conclusion

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Appendix

1. Table of Changes
2. PESTEL Analysis
3. Competitor Analysis
4. Porters’ 5 Forces
5. Business Canvas Model
6. Options for Development
7. Ansoff’s Matrix
8. Risk Assessment

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CYCLEXPERIENCE: A CASE STUDY

EXECUTIVE SUMMARY

Cyclexperience is a mature Cycle Hire business based in the heart of the New Forest. Through
critically evaluating the current external and internal environment using a range of appropriate
business models, an option for income generation has been identified. The option selected will
utilise the current resources and capabilities of the business and help to proof its self against
the external political and economic uncertainties being experienced because of Brexit.

1 INTRODUCTION

The aim of this case study is to critically evaluate an entrepreneurial organisation, in this case
it will be a mature cycle hire business set in the heart of the New Forest. Through undergoing
a critical assessment of its current business position using appropriate business models such
as PESTEL, SWOT or Porters 5 Forces the report will pull together the organisation’s strengths
and weaknesses in order to inform recommendations for development.

1.2 SCOPE

The scope of this report will focus on understanding the strengths and weaknesses of the
business, to understand the capacity of the business for development and to suggest
recommendations for future growth. The report will identify areas of risk and suggest actions
to mitigate. The report will not include financial forecasting but will consider the current financial
position as a tool to inform the current position and provide additional evidence towards the
direction of development.

The business selected for study is Cyclexperience, a cycle hire and retail business in the New
Forest. Using Burns (2016) definitions of organisation sizes, this report will define
Cyclexperience as a ‘small business’ as it fits in the parameters of employing between 10 and
49 staff with an annual turnover of less than 50 million euros.

Although there are 3 separate parts to the Cyclexperience business as listed in section 1.3 the
scope of this report will focus on the core business which is the Hire Hub in Brockenhurst. The
other 2 areas of business will be considered as secondary to the core business, they will be
considered in the options sections but as recommendations for future thinking.

1.3 CYCLEXPERIENCE

Cyclexperience in their own words are ‘an award-winning team that are passionate about
cycling and love to provide great experiences to customers from around the world. Working
with leading bicycle brands, local business and public authorities to bring customers an
unforgettable and sustainable cycling experience’ (cyclex.co.uk 2019).

Predominantly based in the heart of the New Forest their large Hire Centre and high-end retail
shop are minutes from the train station. The New Forest receive 13.5 million visitors a year and
are a key contributor to tourism in the south coast and in Britain as a whole (New Forest 2019)

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Cyclexperience celebrated their 26th year in business and have undergone several strategic
changes in order to remain a viable business (appendix 1). The business was started by two
students from Bournemouth University with a loan from Prince’s Trust and opened with 20
bikes in a grain shed. Since then they have expanded, reduced and consolidated in size
depending on market demand and the pressures faced by the external market. Currently the
organisation includes 3 parts

• Cyclexperience Hire Centre Brockenhurst Train Station– Fleet of 340 bikes that include
electric bikes, tandems, hybrids, mountain bikes, tag-alongs (children and dogs) and
inclusion bikes/trikes. 2 Full time permanent staff, 2 part time permanent staff and
between 25 – 30 seasonal staff. Open all year. The Hire Centre (Hub) is a large space
that could be used for other activities outside of normal opening hours. The centre is an
integral part of the village and they are a key employer in the local area. For many young
people in the village working at the centre is their first job. The centre recommends
places to eat and stay around the area and in doing so bring additional money to local
businesses.

• Boost. High End Retail – Brockenhurst Village. High priced Bikes. 3 Full time permanent
staff. Currently breaks even in terms of finances. The building is owned by the business
so alternative use for building could be considered.
• Cyclexperience Hire Centre Norden in Dorset – Fleet of 150 bikes that include similar
stock to Brockenhurst but does not include the inclusion bikes. 2 full time seasonal staff,
and up to 10 part time seasonal staff. Centre is not open through the winter and only
breaks even in terms of finances. In peak season, the centre has needed to borrow bikes
from Brockenhurst to meet demands, but this is ad hoc but still requires consideration
in any future plans. The building is leased from Purbeck Council.

1.3.1 MISSION STATEMENT AND VISION

Organisations mission statement sets out the purpose of the organisation, what the reason for
the business is, what the aim is, and why the business exists.
The vision sets out the plans for the organisation and where it plans to be in a set period (Lynch
2012).
Cyclexperience does not have a mission statement or a defined vison which can make it hard
to understand what its strategic direction is or give it any steer when considering a strategic
change or development. However, Cyclexperience do have a set of core values that drive their
business which need to be considered when planning any future developments.
Core values:
‘Honesty, Helpfulness & Inclusive service for all. We employ local people so you can guarantee
when you buy from us you are contributing to the local economy’ (Cyclex 2019)

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2 CURRENT BUSINESS POSITION

This section will ascertain Cyclexperience current business position in the current climate. It is
important for a business to understand its position in the market place and the direction of
pressure points and challenges, to understand the business environment it sits in, what the
purpose of the business is, to identify its strengths and weaknesses, and to see where the
opportunities and threats are there are a number of strategic models that can be used to
critically evaluate and identify a business position. For this report a PESTEL Analysis,
Competitor and Porters 5 Forces have been used (Appendix 2, 3 and 4).

2.1 PESTEL ANALYSIS

Creditsafe (2019) state that recruitment the economy and political stability will be the big
challenges for British business in 2019.
For a small business like Cyclexperience, the Political environment will impact from economic
decision making, changes in regulation, funding availability, unemployment, minimum wage,
taxation, governmental strategic direction (cuts to services etc. for potential long-term financial
stability). The effect of the instability caused by Britain’s plans to leave the EU is being felt
nationwide. Forbes quoted that the Financial Times had report that the UK economy is at least
1.5% smaller than it would have been without the Brexit vote and possibly up to as much as
2.5% smaller. Impact is being felt across many areas including, consumer spending, the
housing market, and currency rates (Cole 2019).
Brexit will impact the ability for UK businesses to continue to trade with the EU in the way they
do now. Business are being advised to reconsider their supply chain options (Velthuijen and
Bernard 2016). For a small business such as Cyclexperience whose stock of bikes and
replacement bike parts are mostly manufactured in Holland, the impact of Brexit will be felt
through the potential increase in cost, the availability and the time it takes for delivery of bikes
and parts. The risk of this impact is a concern for a small business who operate with small
profit margins due to recent investment for expansion.
From an economical point, areas such as inflation, interest rates, currency fluctuations and
energy costs for a small business are all areas of challenge that a business incorporates into
its financial planning. Cyclexperience are working within small profit margins and currently has
a long-term loan of £254,000, which would be affected by any rise in interest rates. Although
the business operates all year long, the business is seasonal; the winter months are carried
financially by the income generated in summer. The winter months run in deficit and any
increase in interest rates would be impact profits (Fame 2019).
Inbound Tourism in the UK is set to grow by 3.8% every year until 2015 with record numbers
of visitors expected from China, India and Eastern Europe. The New Forest sees 13.5 million
visitors every year and most of these are day-trippers (Visit Britain.org, New Forest.gov 2019).
The UK Government are putting in a number of initiatives and funding in place to attract more
inbound tourists from other countries to make travel around the country easier and cheaper,
alter regulations for small tourism-based business and encourage oversea tourists to travel
beyond the Capital city of London (Reckless 2017).

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Despite the uncertainty of Brexit Tourism has not yet experienced any detrimental impact. The
drop in the pound has seen an increase in inbound tourism and those already living in the UK
are trending towards staying at home (Reuters 2018). Cyclexperience should take advantage
of the increased Tourism and consider how to market and meet the potential demand.
Consumer expenditure and levels of disposable income will affect the business. Increases in
disposable income increases households buying power and usually the ability to spend on
leisure activities (Bolton 2015). The current instability of Brexit has devalued the pound and
increased consumer prices which in turn affects consumer spending on leisure activities, but
data shows that it is larger spends that are feeling the impact (Clark, Serwicka & Winters 2017).
Currently there is a social focus on health, wellbeing and mental wellbeing. Activities such as
cycling are great ways to exercise and get people out into the open area (Cyclescheme 2017).
The link between good mental health and exercise is well documented with studies such as
Cohen-Cline, Turkheimer & Duncan (2015).
Health and Wellbeing are high on workplace agendas in order to address sickness levels and
stress (Mental Health at Work.org.uk 2018). Corporate Away day/ team days is an area that
could be explored.
Although not a high concern, but an increase in employees looking for flexible working
conditions will affect a small business. McArdle (2019) predict that flexible working will be high
on the agenda for small businesses in 2019. When operating with a small number of staff the
ability to offer flexible working hours is not beneficial to the business. Cyclexperience would not
be able to operate flexible working conditions for its team without considering a restructure of
its operations.
The ability for a business to be available for its customers 24 hrs a day is now vital. Customer
expect to be able to go online and find what they need quickly. Customers will quickly move to
another business if their online experience is not to their liking. Tourism has some of the fastest
developing technology, these include; booking systems, hosting, travelling and digital reach
(Visit Britain.org 2019). Technology development is fast paced, and it causes a challenge to
small business to keep up (McArdle 2019). Cyclexperience have recently updated their online
booking system, which integrates with its asset management system and allows the business
to track all their stock, their maintenance whilst allowing a seamless customer experience.
However, the booking system is paid for via a small charge to the customer and although
customers are used to booking fees it does put some people off and they continue to phone or
email which puts pressure on the staff during busy times.
Climate change and our impact on the environment is high on the agenda with public groups
pushing for strong legislative change and consumer groups pushing business to consider
changing their unsustainable practices. All businesses, no matter of size need to consider how
these pressures will affect them and plan towards reducing their environmental impact.
However, making these changes will not be a simple task and not inexpensive (McArdle 2019).
Cyclexperience are already offering and alternative to driving around the New Forest and
market the fact that they are minutes away from the train station to encourage visitors not to
bring their cars. The new hire centre that was built in 2015 is made from sustainable materials

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and uses renewable energy. The mind-set of the business owners has always been one of
being environmentally aware and is one of the drivers for the business direction (Cyclex 2019)
For a small business, the impact of legislation changes can be a risk. Changes such as GDPR,
employment laws/rights, environmental impact laws, family friendly policies and equality and
diversity will all effect a small business. As a small business, Cyclexperience do not have
departments with subject matter expertise, so the risk of not understanding or acting on
legislative changes is high. Some of these changes if not executed will result in charges or
prosecution (Gov 2015).

2.2 COMPETITORS

By looking at the Competitor Analysis (Appendix 3) it is clear that although there are other Bike
Hire/Retail business in the New Forest the only other business that could be considered a
competitor is Forest Leisure Cycling in Burley. Cyclexperience cannot be matched in fleet size,
position in the forest, reputation and value added through their facilities, time in the business
and their presence on trip advisor (Trip Advisor 2019).

2.3 PORTERS’ 5 FORCES

By looking at Porter’s 5 Forces (Appendix 4) the analysis demonstrates that Cyclexperience is

in a strong position in the market place, its customers do not have huge power and the threat
from current competitors and new entrants is low. However, the bargain power with suppliers
is low and will continue to be in the uncertainty of Brexit.

2.4 SUMMARY OF CURRENT BUSINESS POSITION

Many of the areas that the PESTEL Analysis has highlighted can have a financial effect on
Cyclexperience. Any changes to how their business operate, such as increases in minimum
wage, employment rights, legislative regulation on a business’s environmental impact, the need
to keep updated with technology to match consumer expectation, the instability of Brexit and
the demands from any economic changes will impact the financial position. With their current
financial position, Cyclexperience would need to consider income generation options in order
to remain sustainable. The positive areas highlighted in the PESTEL, increased tourism
numbers into the New Forest, social move towards Health and Wellbeing awareness, and the
environmental awareness mean that there is scope for income generation.
Despite the uncertainties imposed by Brexit, Porters 5 Forces demonstrates that the business
is in a strong market position and that if Cyclexperience can identify ways to generate more
income they would remain sustainable and be able to meet the demands of the changing
business environment.

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3 EVALUATION OF OPTIONS FOR BUSINESS DEVELOPMENT

3.1 STRATEGIC CHOICE

Once an organisation understands it internal and external environment it can start looking at
developing options for growth and sustainability. As covered in section 2, for Cyclexperience
to meet the potential pressures of the external environment they will need to either;

Generate income through diversification, product development, market penetration or

increased added value.

Create surplus through cost reduction via, Non-strategic costs such as change in process,
reduce spending on daily business expenditures or Strategic costs such as restructure of the
organisation (Yeh 2014, Johnson et al 2017).

3.2 BUSINESS MODEL AND RESOURCE AND CAPABILITIES

Once a business has understood the external environment it sits in through undertaken a full
PESTEL analysis, a SWOT or Porters 5 Forces they then need to understand their own
resources and capabilities. Several models that can be used to evaluate a business’s model
and their ability to develop (Lynch 2012).

3.2.1 BUSINESS MODEL CANVAS

The Business Model Canvas (appendix 6) allows a business to explore its efficiencies and what
it gives in terms of value to its customers. The model can be used as brainstorm and will identify
gaps, which can then be addressed. A business can identify what it has to work with, what its
purpose is and what value it brings to the customer. This technique is used before developing
the business plan as it gives a base line of where to start (Burns 2016).

The model for Cyclexperience highlights the key areas of business, how the customers interact
with them, what they can offer of value that can deliver something different from the
competitors.

3.2.2 RESOURCES AND CAPABILITIES

Analysing an organisation’s Resources and Capabilities can identify where value can be added
to improve competitive advantage and to understand what resources are available to utiliise
(Lynch 2012).

Resources – Tangible – The Fleet, Hub, Retail products, staff

Resources – Intangible – Excellent reputation for delivering good customer service, solid
partnerships with local authority and local business.

Organisational Capabilities – Good organizational structure, solid leadership and plenty of

local young people looking for part time seasonal work.

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3.3 OPTIONS

Based on the areas of choice in 3.1 a table of development options has been created
(appendix 7). The options cover a range of development ideas from income generating and
diversification through product development and market penetration and surplus generating
through restructure and diversification. Ansoff’s Matrix (appendix 8) can demonstrate where
each of the possible options sit.

3.3.1 VIABLE OPTIONS

Due to the business, having already undergone investment and expansion in the last few years
the most viable options based on cross referencing the Business Model Canvas and the
Resources and Capabilities and the financial information on Fame would be to explore options
that ones that utilize the resources they already have that require minimal financial impact.

During the summer months, the business runs at full capacity but during the winter, the
bookings are very low, with permanent members of staff still needing to be paid and the
overheads like those in the summer. It would therefore be a viable option to attempt to generate
income through the winter months when there are assets not being utilized.

Create Environmental/Green Education Programs for schools/scout groups (New

Product/New Market penetration)
Requirements • Financial outlay for marketing
• Staff time for creating the program and
for delivery
• Space in the hub
• Expertise in delivering education
sessions
Areas of consider • Could only be delivered in the quiet
months due to space
• Would require time to create the right
program that fits with curriculum
• Market penetration
• Competition

Market directly to business for Corporate Away day/Team building (New Market penetration)
Requirements • Financial outlay for marketing
• Staff time for creating the product and for
delivery
• Use of fleet
Areas of consideration • Would make use of the fleet in the quiet
months
• Weather dependent so may affect take
up
• Quick to create
• Market penetration
• Competitors

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3.4 RECOMMENDED OPTION FOR DEVELOPMENT

Option 2 would be the most viable option for income generation. Creating a Corporate Away
Day/Team Building program would utilize the fleet when not being used for general hire, utilize
the staff that are already employed and require small marketing outlay. This is a hybrid option
based on Resource based options and Environment based options (Lynch 2012).

3.4.1 OTHER OPTIONS

All other options (appendix 7) require investment and or restructure. A proposal for future
consideration would be option 10 to create pop up hubs in other parts of the New Forest to
maximize numbers of customers and provide additional cycle route opportunities.

Cyclexperience do need to consider the Purbeck site and the high-end retail shop as these
only break-even and bring no value to the business.

4. REVISED STRATEGIC PLAN

The proposed option to access new markets by way of Corporate Away days/Team building
still aligns with the core values of the business and would not cause any misalignment with the
core business objectives. The proposed option is to simply utilizes and makes better use of the
resources during quiet times to generate income.

The strategic route for the proposal is market development using existing products. The product
will be slightly repackaged and promoted to a new market to bring in new customers (Lynch
2012).

The option to create a new product for Corporate Away days/Team building will require the
following

• Market research – Understand the market and the competitors

• Creating a package using the existing products

• Considering a competitive price that adds value

• Marketing strategy – Consider the route to market, how to attract new customers. Unlike
the core, business where little marketing is done this proposal will require the business
to reach out to possible customers.

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5 RISKS AND HOW TO MANAGE THESE

According to Lynch (2012) most worthwhile strategies hold some risk that could expose the
business to risk if not assessed and managed. (Appendix 9) Shows the risks associated with
the proposed option and the mitigations. The option is not high risk and the main and highest
risk is from the weather, which is a general risk to the core business and not special to the
plans to develop. There is not anything that can be done to mitigate against the weather other
than managing customer expectation and be flexible in being able to re arrange visits.

6 CONCLUSION

Cyclexperience do not have the cash surplus to remain sustainable if changes in the external
environment causes financial impact. The option for development should, if executed well be
able to generate income during the quiet months when the business currently runs at a deficit.
By evaluating the business model canvas and assessing the resource and capabilities, the best
option is to utilise what the business has during the quiet months and develop a way to generate
the income. The risks have been identified and are low apart from the risk of increased bad
weather, but this is an area that the core part of the business already deals with and is used to
managing customer expectation so as not to damage their reputation.

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Appendix 1. Table of Business Changes

Year Activity
1994 First Retail Store in Brockenhurst
1998 First Hire Centre opened in Brockenhurst
2000 Started selling E bikes
2001 Achieved Trading Standards Award
2002 Became first bike shop in England to sell
Cube Bikes
2004 Launched their first e-commerce site
2005 Achieved Runner up Best Tourism
Experience on the South Coast
2007 Opened Nordon
2010 Started to support Sky Ride Events
2011 - 2012 Closed down the e-commerce store and
sold the Christchurch and Hythe stores to
focus on the Hire and Retail in Brockenhurst
2013 Hosted all ability bike scheme
2014 Increased fleet size and become the largest
Hire Centre on the south coast
2015-2016 Invested and built a new Hire Centre and
leisure store in Brockenhurst
2017 Launched an App.
2017 Won 3 New Forest Brilliance In Business
Awards
2018 Created their Retail and Chill area in the
Hub

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Appendix 2. PESTEL Analysis

Political

Legal Economic

Environme
ntal Social

Technolgic
al Lynch 2012

This PESTEL Analysis highlights key areas that affect the current business environment. Cyclexperience will
need to consider the impact of the areas below when making any development decisions.

Political

• The UK is currently seeing instability caused by Brexit (Cole 2019)

• Lack of confidence in the UK Government

Economic
• The UK economy is currently 1.5% smaller than it would have been without the Brexit Vote
• Consumer spending is unpredictable and the impact of this is being felt on Highstreet, on the housing
market (Cole 2019).

Social
• Push of awareness of wellbeing, mental health and obesity.
• Employers are looking at ways to reduce sickness levels through reducing stress and increasing
wellbeing in the workplace (Mental Health at work 2018).

Technological

• Speed at which technology is being developed means that technology is very quickly outdated
(McCardle 2019)
• Tourism has some of the fastest developing technology of any industry (Visit Britain 2019).

Environmental

• Increase social awareness of reusable packaging, reducing single use plastics, environmentally friendly
manufacturing
• Climate Change high on the agenda with action groups lobbying for political change

Legal
• Legislative changes in employment, national wage increases, requirement to provide family friendly
working policies and rights to work

GDPR.

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Appendix 3 Competitors Analysis

Name of Cycle Forest Leisure The Woods Figgures New Forest

Business Experience Cycling Cyclery Cycles Activities
Based Brockenhurst Burley Lyndhurst Lymington Beaulieu
Size of Fleet 350 + 200 100 45 60
All Ability Yes No No No No
Bikes
Price From £15 From £15 From £15 From £13 From £10 if
booked with
other activities
Online Yes, full online Yes, via a Yes, via a No Yes
Booking booking form contact form
system
Mobile App Yes No No No No
Number of 16 9 2 29 10
Cycle routes Recommended recommended recommended Suggested Recommended
cycle routes cycle routes cycle routes routes pulled cycle routes
that are that are from the
accessible accessible New Forest
from the hire from the hire Website
shop shop which are
not all
accessible
from
Lymington
Transport Next to 10 mins drive 10 mins from 30 mins 30 mins drive
links/Parking Brockenhurst from M27. M27. Local drive from from M27.
20 mins drive Local Bus Bus route. Not M27. Local Local Bus
from M27. route. No accessible by Bus route, routes. Not
Train Station. parking. Not Train. No branch line accessible by
Large Car Park accessible by parking train station Train. No
Train. and Isle of parking
Wight Ferry
Terminal
Facilities Large Hub that Small shop on Small shop on Small Bike Small Hire
includes the high street the High shop on the centre on the
Toilets, which street. High street High Street
shower, gifts, includes Includes small
snacks, toilets and a coffee and
seating and bike shop snack bar
bike shop
Delivery Yes Yes No No No
Opening Time Monday – Monday to Monday – Monday –
Sunday 09:00 – Sunday 09:00 Saturday Sunday 09:00 –
17:00 (Winter) – 17:00 09:00 -17:00 17:00
08:00 – 19:30 (Winter)
(Summer) O9:00 – 17:30
(Summer)
Half Day hire Yes, but walk- Yes, but walk- Yes but walk- Yes, but Yes, but walk-
ins only and ins only and ins only and walk-ins only ins only and
and

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 dependent on dependent on dependent on dependent dependent on
availability availability availability on availability
availability
Additional Brockenhurst Burly is a This is owned Direct If short on
Information is a popular popular place by the same customers to Bikes they hire
village and the to visit. The people as that Cycle more from
Hire centre is village is on own Forest Experience if Cycle
situated next to the main road Leisure. they are Experience.
the station. to the M27. unable to Offer other
Ease and Hire shop sits fulfil a outdoor
accessibility on the corner customer activities
make this a of the main booking
popular place road and does
to hire and can not have
be very busy space for
during peak customers to
times. try their bikes
prior to setting
off.

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Appendix 4. Porters’ 5 Forces

Porters Five Forces Model (Lynch 2012 pg.98)

Bargaining Power with Suppliers – For Cyclexperience the suppliers are those that the
business buy their bikes and accessories from but also their essentials business running
utilities. Areas to consider are cost, credit arrangements, competitive market place and
product availability. This is an area that could be impacted by Brexit.

Bargaining Power of Customers. This relates to the power of customers to shop around for
the best deals. Although there are other hire centres in the New Forest as seen in the
Competitor Analysis (appendix 3) the price is for bike hire at the Cyclexperience is fair and in
line with the other centres. Customers do not have any Bargaining Power.

Threat of potential New Entrants. It would be possible for new entrants to emerge; set up
costs can be low if the new entrant wanted to start small. However, to rival Cyclexperience
the set-up costs would be high, and they would need to be aggressive on price to compete.

Threat of Substitutes. Substitutes can enter the market and make existing products
redundant. For Cyclexperience the chance of substitutions is slim; however, there are
increasingly more electric bikes on the market and increase customer interest in using these
over traditional bikes. This would affect the manufacturers of bikes rather than the hire
centres.

Industry Competitors. As seen in the competitor analysis (appendix 3) there are several
possible competitors, however due to the position of the centre, the facilities and size of fleet

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and their reputation there are no concerns for industry competitions. If Cyclexperience
decided to develop further, they could move into a more competitive market space.

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Appendix 5
Appendix 6 Options for Development

OPTIONS Type of Financial outlay Is there the Is this Further information for
development requirements resource available? a quick consideration
win?

1. Market Income generation Marketing budget Yes Yes This option can generate income
Corporate during the winter months when
Away Days business is quiet. Although
weather dependant.
Other competitors and available
markets
2. Market Income generation Marketing budget Yes Yes This option can generate income
school visits during the winter months when the
business is quiet. Although
weather dependant. Other
competitors and available
markets.
3. Create Key Income generation Marketing budget No No This will require market research
stage 1 and Diversification and knowledge of the curriculum
Education but would be a viable option for
programmes: consideration. Other competitors
The and available markets
environment,
the way
people travel
4. Create ‘Build Income generation Investment/set up costs No Yes This would need a small
a Bike station through investment investment for start-up equipment.
Would need to be marketed.

5. Create Bike Income generation Marketing budget, staff Yes No The expertise is already available,
Maintenance cost but would require marketing and
Classes planning
6. Sell Boost Create short term Redundancy costs N/A No Boost break even and have
and the surplus ongoing staffing issues. This
building would be a viable long-term
option. The retail could be
relocated to the central hire centre
7. Close Boost Diversification Investment No No If a viable option for alternative
and use the use could be found this is an
space for option for the future.
alternative
business
8. Close the Create short term Redundancy costs and N/A Yes This is a viable option as this
Nordon surplus relocation of fleet centre breaks even and does not
centre bring any additional value to the
business.

9. Invest in Large Investment Large cash investment No No Decisions will need to be made for
Nordon and Nordon, investment or closure.
create a
similar hub
to
Brockenhurst
10. Create pop Investment for transport, No No This is a very viable option for the
up hubs in additional staff and set up. future. There are parts of the
other parts of forest that cannot be reached by a
the New day’s bike hire from Brockenhurst.
Forest Hubs will open more available
cycle routes and add more
diversity for customers

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APPENDIX 7 ANSOFF’S MATRIX

This model helps and organisation to understand where it can head.

Market Penetration – Building on increasing market growth by concentrating on

pushing harder existing products in an already existing market.

Product Development - Investing in new products and fitting in to existing

Markets.

Market Development - Using existing products but pushing into new markets.
Either through rebranding, repackaging or targeted marketing

Diversification – Increasing the range of products to take new markets

Options 1,2,5 Options 3, 7

None of the
options fit here Option 4,8, 10
Appendix 8 Risk Assessment for Option Development
Risk Impact Probability Action
[Low/Med/High] [Low/Med/High]

Financial Risk. Lack of ROI Medium Medium Monitor & Control the Marketing budget
and monitor the ROI

Market change/competition Low Low Monitor market trends in Corporate away

days. Monitor any emerging competition.

Unusually prolonged bad High Medium Monitor This risk cannot be mitigated
weather against. It is something the business deals
with as part of their daily business. Cash
surplus should be created to ensure the
business can remain sustainable in the
event of a year of bad weather.

Impact of bad weather on High Medium Monitor weather and be flexible in offering
customer satisfaction customers alternative days if the weather
becomes an issue.

Impact of increased use of Low Medium Monitor bikes and replace earlier if
fleet needed.
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