Case Study Overview
Objective
To create a comprehensive business management plan for a chainless bicycle company entering the Brazilian market. This plan will focus on defining the company’s needs, resources, objectives, and processes, while applying key administrative concepts such as management by objectives, marketing administration, and operational efficiency. The goal is to ensure the company’s successful launch, sustainable growth, and alignment with market demands.
Challenge
Introducing innovative chainless technology in a traditional bicycle market requires overcoming consumer skepticism about durability and maintenance. Establishing reliable on-demand production with 4-day delivery targets demands precise coordination between Brazilian customs (for imported components) and local assembly teams. Balancing eco-friendly manufacturing commitments with competitive pricing (R$15,000-30,000 initial costs) creates financial pressure, particularly for small-batch orders. Training hybrid teams in technical production and digital marketing (TikTok/YouTube campaigns) requires significant upskilling investments. Navigating Brazil’s complex tax incentives for green industries while maintaining profit margins adds regulatory complexity to expansion plans.
Context
“Anyone starting their own business needs to have at least a basic understanding of business management, meaning they should know how to plan their entire company before it even materializes. [...] Business management is a strategy for conducting business to generate better results. Typically, it involves actions that encompass all administrative processes, from the financial sector to human resources, marketing, etc.”
Source: Sebrae
Many companies fail to generate better results precisely due to a lack of business management and administration. This often leads to inefficient companies or even the closure of operations. Planning a future for the company means creating a business management plan.
Significance
This scenario highlights the importance of our discipline, Concepts of Administration and Business Ethics. Administration is a common necessity across various professions, and you cannot afford to lack this competency, right?!
Applying administrative concepts allows the business you work in to have a desired and planned future by organizing resources through the functional areas of administration. After all, in our companies, we aim to generate positive results with minimal resources—this is productivity.
Efficient business management also involves developing new products for the market and constantly adapting.
Experiment
How about experimenting with a practical case of adaptation? It’s even better, right?! With that in mind, I invite you to read the article linked below.
Startup Develops a Chainless Bicycle.
Read more
Let’s experiment with this case and learn!!!
Reflection
I’d like to take you on a reflection... Many companies adapt, as was the case with the company presented in the experimentation, which developed a transmission system for bicycles that eliminates the need for chains and derailleurs. Now, think of other examples you know of companies or products that had to adapt.
Conceptualization
Now, let’s take a step toward business management. As we’ve already learned in our textbook, Concepts of Administration and Business Ethics, administration is:
“A process of coordinating the work of an organization’s members and allocating organizational resources to achieve established goals effectively and efficiently”
(SOBRAL; PECI, 2013, p. 6).
MENEGASSI, Cláudia Herrero Martins. Concepts of Administration and Business Ethics. Maringá – Pr.: Unicesumar, 2018. [Unit I, Page 22].
Action
The most awaited moment in your Mapa activity has arrived—the moment when you’ll roll up your sleeves and take action.
Suppose you’ve just been hired by the company from the experimentation link (the company that develops chainless bicycles) to create a business management plan to start its operations in Brazil. Through this plan, you’ll engage with concepts we’ve learned during the course. The name of this business management plan will be Pedaling with Administration, and it should be built through the following steps:
Step 1: Presenting the Company:
In this presentation, define and describe the four pillars for starting operations in Brazil. The four pillars are:
- Need
- Resources
- Objectives
- Processes
In this step, you should apply the knowledge we learned in Unit 1 under the topic of Administration and Management in an active way.
Need
"Imagine you’re enjoying a bicycle ride. It’s a beautiful day, and your exercise rhythm is just right. Until an incident ruins your good mood: the chain of your bike comes loose." (GLOBO…, 2019)
Now, imagine driving your car, running out of petrol… stopping at the petrol station, you notice the price of petrol is £1.50 per litre, the queue is long… 40 minutes and £80 later, you finally refuel.
You could also imagine visiting a cardiologist, who recommends daily physical exercise to improve your quality of life and reduce the risk of developing illnesses. Or perhaps, imagine your city with 0% carbon emissions—how wonderful it would be to breathe air free of pollutants and have one less problem to tackle in the fight against global warming.
All these scenarios highlight the need to develop a modern, more efficient bicycle that reflects today’s reality. Since its invention in 1817, numerous improvements have been made, including the addition of pedals, seats, and enhancements to stability (HANCKOK, 2017). The chain-driven bicycle was invented in 1874, and by 1880, it had all the features of the bicycles we use today (RAMOS, 2020).
Evolution of bicycles. Source: Wikipedia, 2006.
Resources
Financial
According to Torres (2021), the costs for opening a business in Brazil range from £80 to £250. These are just the costs for registering a CNPJ (Brazilian business identification number). Additionally, there are estimated costs for setting up the manufacturing infrastructure and for commercialisation, with the latter potentially starting online.
With rent and shop infrastructure, you could invest around £1,000 to £1,500. To start sales, you would invest approximately £4,000 in stock, including bicycles, parts, and accessories. […] It’s important to have a good working capital. If you started the business with £6,000, it’s ideal to have at least £1,000 to £1,500 in reserve to keep the business running until sales begin to flow. (SITE TERRA, 2018)
The above estimates are for a bicycle shop. Since we’re talking about an industry, I estimate the initial costs to be around £15,000 to £30,000. These resources can be obtained through financing or investors.
Personnel
Initially, it’s important to divide the company into basic areas. To avoid high salaries and manage the expectations of employees, job titles are adjusted. In other words, C-level executives, directors, and managers do not exist in this structure.
Possible Organisational Chart
Note that this is only a draft of the company’s main areas. Naturally, it is necessary to hire the workers who will be responsible for the production of the bicycles.
Others
In addition to the resources above, we also have raw materials for the production of bicycles, information about the consumer market, technologies necessary for development, and structures for manufacturing, sales, and distribution.
Objectives
According to Menegassi (2018), objectives should be linked to needs. Therefore, our objectives are:
- To transform the cyclist’s experience into an enjoyable activity, reducing the risk of accidents and the need for equipment maintenance.
- To contribute to the reduction of greenhouse gas emissions on the planet, through reducing the use of motor vehicles and the burning of fossil fuels.
- To promote the improvement of people’s quality of life through daily physical exercise.
- To innovate bicycle design with a modern vehicle that reflects the technology of the era we live in.
Processes
Each area should have its specific processes:
- People Management Area – recruitment processes, onboarding of new employees, payroll, staff development, conflict management, and termination.
- Marketing and Sales Area – promotion and advertising processes, etc.
- Finance Area – investment processes, expense control, expense approvals, etc.
- Technology Area – development processes, technical support.
- Production Area – production control processes, distribution and logistics, workplace safety, etc.
Step 2: Establishing Objectives
Remember that in this business management plan, Pedaling with Administration, it’s necessary to set objectives, especially since the company is just starting its operations in Brazil.
Describe at least four objectives that should be achieved when starting the company’s activities.
In this step, you should apply the knowledge we learned in Unit 2 under the topic of Management by Objectives.
Objectives
1 Establish the company in the consumer market
1.1 Promote the company on social media platforms (Instagram, TikTok, Facebook, YouTube) by creating organic content that highlights the bicycle. As this is an innovative product, showcase how it is made, introduce the people behind it, and create content that promotes health and environmental awareness, aligning with the company’s overall objectives.
1.2 Launch promotions to popularise the product. Run campaigns where those who promote the company the most can win a bicycle.
1.3 Participate in sporting events and transport fairs to increase visibility.
2. Build the infrastructure to produce and market the bicycle
2.1. Set up the factory in a location that offers tax incentives and has a distribution infrastructure capable of receiving raw materials and dispatching goods efficiently.
2.2. Environmental sustainability is one of the product’s key selling points. Therefore, the plant must be 100% sustainable from the beginning of the production process.
2.3. The production facility should be flexible, highly technological, and scalable. Production should begin immediately after receiving an order.
3. Establish a nationwide distribution network
3.1. Initially, the company will focus on online sales. Therefore, it is essential to create an interactive website where customers can make purchases securely.
3.2. Bicycles will be produced on demand. This will maximise available resources and reduce the need for large inventories of raw materials and finished products. However, it is also important that customers do not have to wait too long for delivery. The company commits to delivering within 4 working days of the order date. Agreements with logistics companies must be made to ensure all deliveries are completed within this timeframe.
4. Hire suitable employees with a team spirit and collaborative attitude
4.1. The hiring process should be robust, with three stages to correctly identify candidates with the necessary profile (interview, group dynamics, and a factory visit).
4.2. Use consultancy services for hiring.
4.3. Provide intensive support to employees with regular training in their specific areas and cross-training in other areas of the company to help them understand the business as a whole.
4.4. Foster a culture of feedback where managers in each area connect with their team members to give and receive feedback at least once a month.
Step 3: Initial Marketing Administration
Now is the time in your Pedaling with Administration plan to plan how to promote the company’s initial activities in Brazil. This will be done through marketing administration, specifically using the 4 Ps of the marketing mix.
Therefore, in this step, you should describe how the company’s activities will begin using the 4 Ps of the marketing mix (Product, Price, Promotion, Place). It’s important to include at least two detailed items for each of the 4 Ps and explain how each item will be implemented.
In this step, you should apply the knowledge we learned in Unit 4 under the topic of Marketing Administration in an active way.
PRODUCT
Quality and Features
Showcase the high quality and key features of the product. This will be achieved through a series of videos demonstrating the product in extreme conditions, as shown in the example. Additionally, other aspects such as the production process and materials used will be highlighted. These videos will be posted on social media platforms like Instagram, TikTok, YouTube, and the company's website.
PRICE
Payment Terms and Discounts
To make the product more accessible, customers can opt for interest-free instalments, spreading the cost over up to 24 months when using a credit card. For those paying upfront, a 10% discount will be applied. Furthermore, when purchasing two bicycles, the second one will receive a 25% discount.
PROMOTION
Advertising and Public Relations
Advertising will be conducted on social media platforms, with the product promoted through paid content on Instagram, TikTok, and YouTube. Additionally, the brand will participate in sporting events to enhance promotion and strengthen its market presence.
PLACE
Sales Channels
The primary sales channel will be the company's website, alongside major sports retailers such as Decathlon, and large marketplaces like Amazon and Mercado Livre.
Transport
For distribution, partnerships will be established with high-quality logistics companies such as DHL, UPS, FedEx, and Aramex. Deliveries will be free of charge for customers across the entire country, with a commitment to a 4-working-day delivery time from the date of order.
Implementation Outcomes
Business Plan Achievements
- Chainless bicycle design finalized for Brazilian market compliance
- Flat organizational structure with 8 key roles defined
- 4 sustainability-focused objectives established
- 4-day delivery network with DHL/UPS partnerships secured
- Flexible pricing strategy (24-month installments + 10% discounts)
- 100% sustainable production commitment
Market Validation
The "Pedaling with Administration" plan demonstrates:
- Cross-functional process alignment across 5 departments
- Scalable on-demand manufacturing model
- Multi-channel distribution strategy (online + retail)
References
GLOBO. Pequenas Empresas Grandes Negócios. Empresa desenvolve bicicleta que não precisa de corrente. [S.l.]. Globo.com, 2019. Disponível em: https://revistapegn.globo.com/Banco-de-ideias/Saude/noticia/2019/10/empresa-desenvolve-bicicleta-que-nao-precisa-de-corrente.html. Acesso em: 5 abr. 2022.
HANCOCK, Jaime Rubio. Há 200 anos foi criada a primeira bicicleta: estes foram os primeiros modelos. In: EL PAÍS. El País. [S.l.]. 20 abr. 2017. Disponível em: https://brasil.elpais.com/brasil/2017/04/19/deportes/1492597692_626497.html. Acesso em: 13 abr. 2022.
MENEGASSI, Cláudia Herrero Martins. Conceitos da Administração e Ética Empresarial. Maringá: Unicesumar, 2018.
RAMOS, Jefferson Evandro Machado. Sua Pesquisa. História da Bicicleta. [S.l.]. Site Sua Pesquisa, 2020. Disponível em: https://www.suapesquisa.com/cienciastecnologia/historia_bicicleta.htm. Acesso em: 21 abr. 2022.
SITE TERRA. 10 Passos para Montar uma loja de bicicletas - parte 2. [S.l.]. Terra, 2018. Disponível em: https://www.terra.com.br/noticias/10-passos-para-montar-uma-loja-de-bicicletas-parte-2,3b973d0ffd1b00eeebaa2e1c0fe13e76whusgn48.html. Acesso em: 19 abr. 2022.
TORRES, Vitor. Quanto custa abrir empresa no Brasil? : Confira os custos e Taxas em 2021. Contabilizei.blog. [S.l.]. 31 dez. 2021. Disponível em: https://www.contabilizei.com.br/contabilidade-online/quanto-custa-abrir-empresa-no-brasil-descubra-tudo/. Acesso em: 21 abr. 2022.
TREK SLASH. [S.l.: s.n.], 2020. 1 vídeo (3:55 min). Publicado pelo Trek Bicycle. Disponível em: https://youtu.be/9UXDlry99G4. Acesso em: 26 abr. 2022.
WIKIPÉDIA. Wikipédia a enciclopédia livre. Figura a História da Bicicleta. [S.l.]. Wikipédia, 2006. Disponível em: https://pt.wikipedia.org/wiki/Bicicleta. Acesso em: 21 abr. 2022.