Harley Davidson

6082 Words Nov 16th, 2013 25 Pages
Strategic Management

ASSIGNMENT 1
Academic Report – Harley-Davidson

WORD COUNT: 5492
Main Body: 3300
Appendix: 2192
TABLE OF CONTENTS

1.0 Introduction…………………………………………………..…..3
2.0 Business Level Strategy ...………………………………….....3
2.1 Cost Leadership…….…………………………………..5
2.2 Differentiation Strategy…………………………….......6
2.3 Focus Strategy………………………………………….7
3.0 SWOT Analysis………………………………………………….7
4.0 PESTLE Analysis…………………………………………….....9
5.0 Corporate Level Strategy………………………………………10
1. ANSOFF Matrix……………………………………10
2. Portfolio Management…………………………….13
3. BCG Matrix………………………………………...13
4. GE-McKinsey Matrix………………………………14
6.0 Conclusion…………………………………………………….....15
7.0 Appendices
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Richard Teerlink in the 80s restructuring and the present CEO Keith Wandell demonstrated such leadership qualities when difficult decisions were made to institute changes that aided in circumventing risks the organisation was exposed to at the time (Appendix 1).
An organisation has three generic strategies that can be used to overcome the five forces and achieve competitive advantage – overall cost leadership, differentiation and focus (Porter, 1996) (see Figure 1).

COMPETITIVE ADVANTAGE

Lower Cost
Differentiation

1 Cost Leadership
2 Differentiation

3a Cost Focus
3b Differentiation Focus

Figure 1: Michael Porter’s Three generic strategies (Source: Porter (1985) cited in Johnson et al, 2011)
According to Porter, there are two means of achieving competitive advantage – lower costs than its competitors or products that are unique and exceptional to customers that they can charge a higher price than its competitors. An organisation makes a choice based on the scope of customers whereby they may choose to focus on narrow customer segments or a broad range of customers. Harley-Davidson opted for a unique, higher priced differentiated product (Appendix 1).

2.1 COST LEADERSHIP
A cost leadership strategy involves the organisation producing goods or services at a lower cost

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