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Global Bike Incorporated (GBI) 15

accounting reports are produced as needed and can contain any information
that management deems necessary.
Among the major costs management accounting tracks are materials costs,
labor costs, and overhead costs. Management takes these costs into account when
it establishes prices for its products or services. It then combines these data with
information concerning revenues to determine the profi tability of various products
and services in different market segments. Ultimately, management utilizes all of
this information to make key strategic decisions that affect the organization’s prod-
ucts market mix as well as tactical decisions that infl uence day-to-day operations.

GLOBAL BIKE INCORPORATED (GBI)
GLOBAL BIKE INC.
Throughout this book, we will use the case of Global Bike Incorporated (GBI)
to illustrate important concepts, processes, and techniques. GBI is a fi ctional
company, and its operations have been greatly simplifi ed to make its business
processes and its SAP ERP system easier for you to work with. Although GBI
might seem complex as you progress through the chapters of this textbook,
rarely will the business operations of a real-world company be as simple as
those found in GBI.
Much the data used in this textbook are based on GBI and represent the
many aspects of its fi ctional suppliers, customers, employees, and materials. In
addition, all of the hands-on exercises are intended to be completed in a func-
tioning (live) SAP ERP system that is confi gured with GBI data. (Enterprise
Resource Planning, or ERP, systems integrate a company’s various functional
and cross-functional business processes. We explain ERP systems in greater
detail in Chapter 2.) It is very important that you quickly become familiar with
GBI and their business operations in order to master the key concepts in this
course and to complete your course assignments.
The following paragraphs provide a brief overview of GBI. However, you
must retrieve the detailed GBI Annual Report from the WileyPLUS course
site (explained later) or the SAP University Alliances Community (SAP UAC)
at http://uac.sap.com to learn the full story of how GBI came into existence
and to familiarize yourself with the specifi cs of the company’s operations. The
SAP UAC is a free site for all university students who are enrolled in an SAP
course. The registration process is very simple and is free. In addition to the
detailed GBI information on the SAP UAC site, you will also gain access to
several SAP career services, including certifi cation information and internship
and job opportunities. Your instructor can show you where to access the GBI
Annual Report on the SAP UAC site once you have registered.
GBI was founded in 2001 following the merger of two bicycle manufac-
turers, one based in the United Sates and the other in Germany. GBI has three
lines of business: deluxe and professional touring bikes, men’s and women’s
off-road bikes, and bike accessories. GBI sells its bikes to a network of spe-
cialized dealers throughout the world, and it procures its raw materials from a
variety of suppliers globally.
GBI has two manufacturing facilities, one in the United States and one in
Germany. It also has three additional warehouses, two in the United States and
one in Germany. GBI has more than 100 employees globally. The organization
uses SAP ERP to support its processes. Figure 1-11 illustrates GBI’s enterprise
structure.

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