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DHL Consulting case: Bike Shop

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Case Prompt

You have been hired to support the owner of a bike-shop as a business consultant. The bike-shop has suffered a significant revenue decline during the last year, and now the owner would like you to assess the situation and options for the way forward.

They want to know last year’s profit, i.e. how it was affected by the revenue decline, and what the priority actions are to survive the next year. (short term)
In addition they would like to understand the strategic competitive position of the shop better and how to increase revenues again mid- to long-term.

Sample Structure

I. Background

II a. Profit – Bike Shop Cost Structure

II b. Profit – 2013

II c. Profit – 2014

II d. Profit – Short Time Priorities

III. Strategy

IV. Conclusion

Further Questions

Is quitting the shop an option for the owner?

How could a more aggressive expansion strategy to beat the new competitor look like?

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