Motorcycle and Financial Services

A long standing business practice at Harley-Davidson is “Excellent Corporate Governance” (Harley-Davidson, 2010b ). Last year (May 2009), Harley-Davidson welcomed its new President and Chief Executive Officer, Keith E. Wandell. Working with Mr. Wandell, is the Board of Directors,

Some driving forces in the motorcycle industry include a general income increase in such emerging markets as China, India, and Southeast Asia. Consumers in these markets prefer performance bikes which typically are more cost-friendly than Harley-Davidson bikes. Due

The purpose of this analysis report is to discuss the solvency and profitability of Harley-Davidson, Inc. (HOG) and formulate a measurement for is financial standing and profitability by comparison to the Industry in which it resides. Solvency is determined from data collected in the 2012 SEC Harley-Davidson, Inc. 10K report, and calculated based upon the solvency ratio; Solvency equals After Tax Net Profit plus Depreciation divided by Long Term Liabilities plus Short Term Liabilities. According to Investopedia.com the general rule of thumb is that a company with a solvency ratio greater than 20% is considered a financially healthy

The Harley-Davidson Motor Company had a small beginning, but has risen to unimaginable success. The road to success has not been simple and the company has been faced with many hardships. The support of outrageously loyal owners have allowed the company to struggle but maintain its composure. Harley’s top management has implemented plans to achieve prosperity, which has lasted throughout the years, and they are constantly looking forward.

EXECUTIVE SUMMARY Harley-Davidson is the largest market share holder of motorcycles over 750cc in the United States. After the expansion of our production and distribution capacity, we will be in the position to meet the increasing demand for our motorcycles and other products. Growth potential appears very good especially in the overseas market. Gaining a larger market share in these area may require a further increase in production and distribution capacities. We must plan for expansion now and continue to grow as a company.

In 1901, at the age of 21, William S. Harley created “a blueprint drawing of an engine designed to fit into a bicycle” (Harley-Davidson.com, 2015). In 1903, William S. Harley, and co-founder Arthur Davidson made “available to the public the first production Harley-Davison® motorcycle”; Harley-Davidson Motor Company was officially incorporated in 1907 (Harley-Davidson.com, 2015). What started out in a small wooden shed in Milwaukee has evolved into an iconic and massive multi-million dollar global organization. This paper will discuss the organizational effectiveness of Harley-Davidson by examining its financial health, strengths and weaknesses, internal processes, and core competencies.

Harley-Davidson's mission statement is to "fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments." (Harley Davidson, 1999). The company's main objective for the entire organization s is to have happy and satisfied stakeholder; this includes their customers, employees, suppliers, investors, and the entire society in general. Harley-Davidson makes the customer's experience with their products the core of their business and every effort is made to make this experience as enjoyable as possible. It is this strategy that has helped Harley Davidson meet its current level of success.

Then in return, these stakeholders will continue purchasing their products throughout their life time due to their unforgettable experience they have doing business with Harley-Davidson. Harley-Davidson believes the backbone in their business is their strong brand name and their loyalty with customers.

In this paper we will perform a complete analysis of the Harley-Davidson Corporation including their corporate and business strategies, strengths and weaknesses, environmental opportunities, the five industry forces, and financial situation. Harley-Davidson has many attributes, which will be apparent in the following analysis. The paper will attempt to define the different components of the analysis and put them all together in a way that seeks to explain the way that they contribute to the overall success of the company and its stakeholders.

Historically Harley-Davidson to be a Niche Marketer, which is they had focused in on one particular aspect of the market. Kotler and Keller identified the following characteristics of niche marketing; customers have a distinct set of needs, they are willing to pay more to the firm that best suits their needs, it is not likely to attract competitors, gains economies through specialized products and it has a size, profit and to grow. Almost all of these hold true for the “heavyweight” segment of motor cycles that Harley-Davidson produced.

The strength of Harley Davidson can be seen in its logo and product brand. In the United States, the Harley Davidson is like a cult since it has so many followers, as depicted in the case study whereby in all the rallies, hard core fans of the company, for example the Harley Owners Group was present. This gives the company a competitive advantage since it has a market that is readily available and willing to purchase its products no matter the cost. The other strength of the company as seen in the case study was in the protection by the government since it was a United States company. This helped Harley to recover when the company placed an increase on the tariffs charged on the

Since Harley Davison Motor Company started in 1903, they have been successfully “taking the work out of bicycling” better than any other motorcycle manufacturing company. They have experienced great success recently with growing numbers in their percentage of motorcycles shipped, up 14 percent from 1997, and their target market size, up 13.8 percent from 1997. Their brand has also grown so strong over the years that customers are willing to wait up to two years for a motorcycle. The problems that Harley Davison is faced with are how to improve their existing purchasing process, how to integrate their existing procurement methods together, and how to develop longer term

The success of Harley Davidson (HD) is due to the American motorcycle icon’s effective Strategic Management. HD’s vision, mission, goals and objectives strive to exceed the requirements of its main stakeholders. Although these needs are not always met, the company has unique relationships with is stakeholders. The company stays on course with its strategic plan, despite the economy and the decline of American manufacturing and what might be considered its dwindling U.S. consumer base.

After an investigation by the US International Trade Commission, in 1983 President Reagan imposed a 45% tariff on imported bikes and bikes over 700 cc engine capacity. The new management deliberately exploited the past appeal of their big machines, building motorcycles that purposely adopted the look and feel of their earlier models. Quality increased, technical improvements were made, and buyers returned. Harley-Davidson once again became the sales leader in the heavyweight (over 750 cc) market.

The Buell division needs to continue to produce a quality motorcycle under Harley’s brand name