Strategic Audit of Harley Davidson Essay

5310 Words Feb 15th, 2006 22 Pages
Harley Davidson We have decided to address problems and causes within the Harley Davidson Company by using a strategic audit which will explain past, present and future trends within this organization.
I. Current Situation A. Current Situation
Excellent financials, low debt load, 2001 was the 16th consecutive year with record performance. Price/earnings ratio is positive.
• World wide retail for 4th quarter 12.9% growth over year 2000.
• Forbes named Harley-Davidson its "Company of the Year" for 2001.
• Selected by Business Week as on of the nation's "Most Admired Companies."
• Projected sales figures for 2003 look strong.
B. Strategic Posture 1. Mission
• The mission of this company is to "fulfill dreams through the
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II. Strategic Managers A. Board of Directors
1. Presently nine members who will be reduced to eight-there are seven outsiders. 2. Well-respected Americans, elected to board from 1982 through 1997.
3. Divers backgrounds from marketing, sales, finances, telecommunications, engineering, manufacturing, distribution, and International experience.
4. By 2005 a number of the directors will not be eligible for reelection. B. Top Management
1. Was one of 13 managers who bought out Harley-Davidson from AMF in 1981?
2. Very experienced in the industry, with AMF since 1970.
3. Chairman and CEO since 1997.
4. Vastly responsible for current situation.
III. External Environment (EFAS Table; see Exhibit 1) A. Societal Environment 1. Economic
a. Despite the global economic downturn, H-D achieved its 16th consecutive year of record revenue and earnings.
b. Licensing the H-D brand name has enhanced the corporate image with customers.
c. International sales have increased since 1999.
d. H-D has begun selling parts and accessories and general merchandise through non-traditional retail outlets, known as SRL's or secondary retail locations. 2. Technological
a. In 1997 an internal makeover created a WEB to cut back on communication times and administrative trivia, like invoice tracking.
b. Expansion of research and development of motorcycles that would appeal to the younger crowd and the European market.
c. Introduced a