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Project Part
Description/Requirements of Project Part
Evaluation Criteria

Dirt Bikes U.S.A.—Case Study
Task 1:
Examine the Dirt Bikes U.S.A.case
study and review How to Analyze a Case Study.
After reading the case study, review the following information:

·Company History and Background
·Organization Chart and Employees
·Products and Services
·Sales and Marketing

On the basis of this information,
answer the following questions:

products should the company restock?
stores and sales regions would benefit

from promotional campaigns and

(what time of year) should the company

offer products at full price and when
should it offer discounts?
Task 2:
Dirt Bikes’ management wants to be sure that it is pursuing
the right competitive strategy. You have been asked to perform a competitive
analysis of the company to find the information you need. Prepare a report that
analyzes Dirt Bikes using the value chain and competitive forces models. Your
report should include the following:
1. Which activities at Dirt Bikes create the most
Points Assigned
Points Earned
Did the students answer the specified case study questions?
Did you provide answers that follow a logical pattern and
include an explanation for assumptions and appropriate examples?
Did you include appropriate spreadsheet data to support
their answers?

Project Part

Description/Requirements of Project Part

Evaluation Criteria


How does Dirt Bikes provide value to its


Who are Dirt Bikes’ major competitors? How do

the prices of their products compare
with those of Dirt Bikes’? What product features do they emphasize?

What are the competitive forces that can affect the
What competitive strategy should Dirt Bikes pursue?
What information systems best support that strategy?
(Optional) Use electronic presentation software to
summarize your findings for the management.

Task 3:
Dirt Bikes would like to implement new software for
production planning, quality control, and scheduling. The software will be
used by 25 members of the company’s manufacturing staff. The management is
wondering whether to purchase the software from a commercial vendor along
with the hardware required or to use a hosted software solution from a
Software as a Service (SaaS) provider. (The hosted software runs on the
service provider’s computer.) You have been asked to help the management with
this rent-versus-buy decision by calculating the total cost of each option
over a three-year period. The cost of purchasing the software includes the
initial purchase price of the software (licensing fee of $100,000 in the
first year), and the cost of implementing


Project Part

Description/Requirements of Project Part

Evaluation Criteria

and customizing the software in the first year ($20,000).
Hardware costs include a server to run the software (a first-year purchase of
$4,000), one information systems specialist devoting half his or her time to
support the software ($55,000 in full-time annual salary and benefits with a
3 percent annual salary increase each year after the first year), and user
training in the first year ($10,000).You also need to account for the cost of
annual software upgrades ($5,000). On the other hand, the costs of renting
hosted software include the rental fees ($2,500 annually per user),
implementation and customization costs ($12,000 in the first year), and
training ($10,000 in the first year).

Use your spreadsheet software to calculate the total
cost of renting or purchasing this software over a three-year period.
Identify the lowest- price alternative that meets Dirt Bikes’
What other factors should Dirt Bikes consider,
besides cost, while determining whether to rent or buy the hardware and
(Optional) If possible, use electronic presentation
software to summarize your findings for management.

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