Baldwin Bicycle Company

Problem identified Baldwin Bicycle Company (Baldwin or the Company), a small "mid-market" bicycle manufacturer, had a "private label" opportunity with Hi- Valu Stores, Inc. ( Hi- Valu), which operated discount department chain stores in the Northwest. Baldwin had to make a decision whether to accept the Hi-Valu's Challenger deal or not. To make an informed decision, the company should exam a blending of financial, marketing, and strategic implications of the Challenger deal. Financial analysis Current financial …

…can arrange sufficient funding, all the efforts for the new business will be in vain. In light of the company's current financial situation, the best way to arrange funding is to seek short-term financing from Hi-Valu to get the business off the ground. Another solution could be to obtain a better term with Baldwin's supplier. The company's increased demand for material could give it more power to bargain a longer payment period or better price.