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
Question #1 If you were CEO of Harley-Davidson, how would you compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales?
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,
Harley Davidson been in business for over a hundred years. The company operates in several related markets. They sell motorcycles, motorcycle parts and operate a financial component. Additionally the company operates in Europe, North Africa, the Middle East and Asia. All Harley-Davidson business segments operate internationally.
How did the corporation perform the past year overall in terms of return on investment, market share, and profitability?
The technology portion of their company has grown tremendously which has caused so much of their growth. In addition, they found the perfect formula to appeal to and retain customers. Most of their customers are loyal to their company and insist on sticking to their products. Their market capitalization, $639,922 million, is extremely high compared to other companies in their industry They returned about $8 billion to shareholders during their quarter. Also, their gross margins, currently at 38.01%, are high at passed by
Excellent equity position: $820 Million cash on books so they are well positioned for growth.
Beals realized the big necessity to implement Japanese techniques & programs in production for better quality products.
Harley-Davidson is well known for its unique motorcycles. Its subsidiary, Harley-Davidson Motor Company (HDMC), manufactures five families of motorcycles, namely, Touring, Dyna, Softail, Sportster and V-Rod. These models are distinguished by their frame, engine, suspension, and other characteristics. The company shipped 233,117 motorcycles in the fiscal year ended December 2011, comprising 39.5% Touring motorcycle units, 39.2% Custom motorcycle units, and 21.3% Sportster motorcycle units.
As for South America, Harley-Davidson Inc. HOG +0.31% opened a permanent Latin America headquarters, joining a growing list of U.S. companies looking to tap into the emerging market. (By Melodie Warner in Market Watch) South America has a growing economy and a huge acceptance for an icon in the motorcycle industry like Harley Davidson. In the same way Japan embraced Harley “Their economy is a fast growing luxury market” p.c11.
As pointed out in the video, Harley Davidson is fully committed to fostering and growing the women motorcyclist market. Women today represent a large sector of the workforce, enjoy higher incomes than 20 years ago, and possess more disposable income. Furthermore, women are much more empowered than ever before and are encouraged to exercise their freedom of expression and individualism.
Harley Davidson Company has a long history of building motorcycles that have worked to actually shape a part of the American culture. Its product positioning and marketing strategies have served as a prime example for any company to imitate. Harley Davidson has developed immense levels of brand loyalty over the years. However, the company has also been burdened by the recent economic downturn and now is going through something of a rebuilding phase as it tries to determine its best course forward. This analysis will conduct a SWOT assessment of Harley Davidson's current position and make recommendations on how Harley can continue to develop the next phase of its iconic American brand.
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.
Since the founding of Harley-Davidson in 1903 by Arthur and Walter Davidson and William Harley, the company has a rich heritage and a loyal following. The company has proven to be resilient and innovative throughout the years. They have made their fair share of mistakes, especially while under the ownership of AMF, whose decisions almost destroyed Harley-Davidson. They have also made an inspiring come back, recapturing their share of the market and more. Harley-Davidson has managed to attract all sorts of riders including motorcycle “rebels”, women and blue and white color workers. In fact, in our church small group there are two
Harley Davidson is known as one of the main motorcycle manufacturers and sellers in the United States. The company had good business and great market share in the early 1960s when it commanded a total of about 70% 0f the motorcycle market, before the invasion or the intrusion of a small Japanese firm that manufactured lighter motorcycles, known as the Honda. The case study as identifies that Harley Davidson assumed the invasion by the Japanese firm and instead of tackling the competition, it waited for a long time which resulted in the company losing its command in the motorcycle market in the United States. Lack of action by the management of Harley Davidson resulted in the failure of the company
The top level management of Eicher Motors faced a very tough challenge with respect to their motorcycle division Royal Enfield. Royal Enfield was making losses and the company had only one chance to revive it. Modernising the motorcycles in order to increase the customer base was what they wanted to do to revive Royal Enfield, but the existing Royal Enfield customers preferred the original Royal Enfield Bullet than a modernised Royal Enfield Bullet. Therefore, by modernising, there was a risk that the company would lose its existing customers and the probability of gaining new customers was less due to the modernised changes in the traditional features of the motorcycle. The case shows how the company dealt with