This is a cost restructuring case requiring financial analysis to calculate required cost reductions, followed by operational identification of cost-cutting levers. The case challenges candidates to balance aggressive cost targets with realistic execution risks, particularly around mass layoffs and outsourcing implications for brand and quality.
Pedal Pals is an interactive fitness platform with millions of members, offering connected, technology-enabled fitness classes that utilize its proprietary hardware, the Pedal Pal stationary bicycle.
Recently the company has been challenged by a large, activist investor. The activist investor is citing the plummeting stock price impacting shareholder returns. The activist has attributed the issue directly to poor cost control throughout Pedal Pals. Pedal Pals CEO has hired your organization to determine how to manage its cost issue.