...STRATEGIC AUDIT HARLEY DAVIDSON Inc Audit Team: Graeme Eldridge Enya Gu Areeya Ongmongkonkun John Gao CONTENTS |Case Abstract |3 | |History |4 | |Current Situation | | |Performance |5 | |Strategic Position | | |Mission |5 | |Objectives |5 | |Strategy |6 | |Policies |6 | |Corporate Governance | ...
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...Strategic Report for Harley Davidson April 4, 2006 1 Table of Contents Executive Summary ………………………………………………………… 3 Company History ……………………………………………………………. 4 Five Forces Analysis Internal Rivalry ………………………………………………………. 8 Entry …………………………………………………………………….. 9 Substitutes and Complements …………………………………. 9 Supplier and Buyer Power ………………………………………. 10 Financial Analysis ………………………………………………………….. 11 Strategic Issues and Recommendations ………………………….. 17 2 Executive Summary Harley Davidson remains a financially strong and stable company. During 2005 the company reported the 19th consecutive year of record revenues and record earnings. While Harley Davidson’s growth has slowed over the past several years the decline in growth rates are primarily attributable to a maturing market, which results in lower growth rates for all member of the motorcycle sub-industry. During 2006 Standard and Poor’s predicts that the motorcycle sub-industry will grow between 1% and 3%, a much slower rate than the double digit annual gains the sector saw throughout the 90’s and late 80’s. Despite the company’s strong financial outlook the stock price has not been performing well over the past year. The stock price fell dramatically in April 2005 when Harley Davidson management lowered guidance of new motorcycle shipments to the network of independent dealers. Wall Street analysts proceeded to predict doom for the company as it appeared that it would be unable to continue its...
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...12/7/2013 Written Case Analysis | Group #4 | Harley Davidson | Group #4 Written Case: | Executive Summary: Harley Davidson, Inc. began operations in the first decade of the 20th century. Since that time they have developed three major business segments including motorcycles, transportation vehicles, and work within the defense sector. They are headquartered in Milwaukee, WI and in 1990 became the 865th largest U.S Company, as ranked by Business Week. Harley Davidson is best known for its superheavyweight motorcycles. By 1960, Harley Davidson was the undeniable market leader in the superheavyweight category of motorcycles. This was when Japanese manufacturers started to enter the market with lighter weight models of motorcycles which were not in direct competition with Harley’s much larger bikes. A large increase in supply, along with great marketing efforts by the Japanese manufacturers, rapidly increased the demand for motorcycles. Over the years, leading up to 1990, Harley Davidson has remained the market leader in the superheavyweight category of motorcycles with a 62.3% share of the U.S market. However, when looking at the U.S motorcycle market as a whole (see Figure 1), Harley Davidson only represents a 13.9% share of the market. The determining factor behind the lack of market share when looking at the macro motorcycle market is that Harley Davidson only produces larger bikes. They do not produce any motorcycles in the lightweight category. A...
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...Table of Contents Executive Summary …..….…………………………………………………………………………………………………………………………1 Harley-Davidson’s Competitive Advantages ..………………………………………………………………………………………….2 Symbol of Innovation and Toughness ……………………………………………………………………………………….…2 Uniqueness and Distinction …………………………………………………………………………………………………………2 Facing Challenges ………………………………………………………………………………………….…….……………………..3 Future Sustainability ……………………………………………………………………………………………………………………3 Vulnerability ……………………………………………………………………………………………………………………………….4 Challenges of the 21st Century ………………………………………………………………………………………………………………….4 Strategies to Address the Challenges ………………………………………………………………………………………….5 Short-Term Strategies as Harley Matures ……………………………………………………………………………………6 Long-Term Survival ……………………………………………………………………………………………………………………..7 DaimlerChrysler Automotive Group …………………………………………………………………………………………………………8 Business Strategies ……………………………………………………………………………………………………………………..8 Production Issues ………………………………………………………………………………………………………………………..9 Harley-Davidson’s Transformation ……………………………………………………………………………………………10 Why DaimlerChrysler Fell ………………………………………………………………………………………………………….11 Ford Motorcycles ………………………..…………………………………………………………………………………………………………12 Strategies ……….…………………………………………………………………………………………………………………………12 Customer-Perceived Value …..…………………………………………………………………………………………………..13 Extension of the...
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...Genuine Harley Davidson Parts Sales Recovery Marketing Plan Mark McLean BUS620 Dr. Patricia Ryan October 31, 2011 0.1 Company Overview Harley-Davidson, Inc. was founded in 1903 and is head quartered in Milwaukee, Wisconsin. The motorcycle company produces and sells heavyweight, cruiser class motorcycles, and supports its customers with motorcycle parts, accessories, and related financial services. Harley –Davidson functions within two segments; Motorcycles and Related Products, and Financial Services. The Motorcycles and Related Products segment include the design, manufacture, and sale of the heavyweight touring, custom, and performance motorcycles. This segment covers a very large geographic area that covers North America, Europe, the Middle East, Africa, the Asia/Pacific, and Latin America markets. To support its customers and add additional revenues, Harley-Davidson or H-D, makes available a line of motorcycle parts and accessories, including replacement parts, and mechanical and cosmetic accessories; general merchandise, such as apparel and accessories; and related services. Also, this segment manufactures five families of motorcycles and three brands. The motorcycle families are Touring, Dyna, Softail, Sportster, and VRSC and the three brands are Harley-Davidson, Buell, and Cagiva (Hoovers Company Records, Harley-Davidson, Inc). The second segment called Financial Services provides wholesale and retail financing, and insurance and insurance-related...
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...Executive Summary For over one hundred years, Harley Davidson, Inc. has excelled in providing consumers with distinguishing style and exceptional quality. They continued to grow and increase profits in the face of much adversity. Their 2003 gross profit margin of 36.02% (Appendix A) was an outstanding example of how they were able to hold high profit margins in such a competitive industry. However, although they have had a strong grip on the American market, 50.3% in 2003 (Appendix A), they remain a luxury item in most foreign countries which has left them much room for expansion globally. Many of Harley Davidson’s internal process worked to their advantage. They always excelled at continuously improving their products, processes, and operations. Employees also stayed involved in the organization (Vision, 2008). Management of the company consistently came up with inventive and intriguing ideas, such as the HOG membership and their Open Road Tour, while continuing to maintain close observation of and strict control of operations. However, not all is well internally in the organization. As mentioned previously, the company has an extremely strong U.S. customer base and had real troubles when trying to acquire more market share internationally (Citarrella and Watson, page 2). They also stayed too focused on the luxury line of products possibly missed on opportunities to acquire more market share through more economic products. Harley Davidson’s innovation in the motorcycle...
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...Executive Summary Size Up Analysis Harley Davidson is a leader in the motorcycle manufacturing industry that mainly competes in the heavyweight class motorcycles. They compete mainly against Japanese manufacturers in the market. During the 1980s, the company came close to bankruptcy due to quality issues that accompanied its rapid production expansion. However, that incident compelled Harley Davidson to renew its focus on quality. Since then, Harley Davidson’s successful differentiation strategy focusing on quality, luxury and branding has been reflected on Harley Davidson’s financial highlights. Net income has more than doubled in a span of 5 years; net income increased to $213 million in 1998 from $104 million in 1994. Net working capital has also increased to $376 million in 1998 from $179 million in 1994. Harley Davidson’s share price has more than tripled during the same period as well, suggesting improved investor confidence. However, we should note that Harley Davidson has increased its financial leverage as displayed by the change in their debt to assets ratio. It was noted that Harley Davidson’s customers are willing to wait 2 years for its motorcycles. There seems to be unmet demand and that may have caused a focus on production to be ingrained into their culture. This is evident in their vision to dramatically increase production capacity demonstrated in their plan 2003. Harley Davidson’s products also have very long life cycles. The evolution of the...
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...Patrick Ferriero Strategic Plan and Self-Reflection Summary M5A1 Argosy University Executive Summary For over the last one hundred years Harley Davidson has been the worldwide leader in the Motorcycle industry. The company which started in 1903 quickly gained notoriety for their quality products. The company went on to become an iconic American Brand gaining a huge, loyal customer base. The company eaw a set back in revenues in 2008 with recession in the economy but has been steadily gaining growth since. In 2013 the company had a revenue of of 5.3 billion dollars which was an increase of 6.4% from the year before. The company has made provisions to break into new market in India because of the steady growth in the country. The company introduced a new bike in the market as an introductory product to get into their market. The company is also marketing to new demographics such as new riders and the younger generation with their new bike. The company used a strategic plan to introduce the bike at an attractable, affordable price to gain the interest of the new markets. The company has competitive advantages that helps them in the entrance into the new market, advantages like a strong brand image and customer experience. Corporate leadership has also helped the company to get to where they are now. The company leaders has to make some strategic decisions to gain their foot place in the market and to cost costs to increase revenues. The company leaders also stand behind...
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...Executive Summary “Harley-Davidson is the iconic American motorcycle manufacturer. Founded out of a small shed in 1903 by William S. Harley and Brothers Arthur and Walter Davidson in Milwaukee, Wisconsin. The Motor Company produces traditional cruiser motorcycles utilizing air-cooled V-Twin engines. When Harley and Davidson produced and sold their first motorcycle in 1903, they were one of many small motorcycle marques springing up across the country. Flash forward more than a century and the Harley-Davidson brand is so rooted in American culture that the history of the company intertwines with the history of America itself. “ Harley- Davidson a brand that say I’m an American with its strong image they summarize what biking is and isn’t. They produce quality products that are reliable and durable. With so much more to offer Harley-Davidson cannot compete with the Japanese in terms of market share in Europe they only have 6.4% which is excruciating for a company who consider their product as a luxury item with all top of the line parts, brand image ,and all the thing they offer to the consumers. That’s why we look for alternative that could be beneficial to Harley-Davidson which is Market penetration, market development, and product development in Europe. We generated this idea ease them and with employees who know what their job is and make the necessary adjustment in their product or service need not worry of what will happen. Situational Analysis Environment The...
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...Final Research Paper Harley Davidson Company Name: Institution: Table of Contents Executive summary 1 1.0 Introduction 1 1.1 Background 1 Situation Analysis 2 2.1 Strategic pillars to ensure continued success and growth 2 2.1.1Producing environmentally suitable products 2 2.1.2Making new models and modifying existing models 3 2.1.3 Employing competent and robust leadership 3 2.1.4Ensuring sustainability in maintaining future success 3 2.2 Internal performance 4 2.3 Performance indicators 5 2.4 Industry perspectives 6 2.5 External factors 8 Problem Analysis and Description 9 Solutions, evaluations and recommendation 11 4.1 Diversify their products 11 4.2 Aggressive advertisement locally and internationally 12 4.3 Improve plant efficiency 12 4.4 Recommendations 13 Implementation Plan 13 Success Metrics 14 Bibliography 16 Appendix 18 Executive summary 1.0 Introduction Harley-Davidson Company is an American automotive company that specialises in producing motorbikes founded in 1903. It is located in Milwaukee, Wisconsin in the United States. Harley Davidson is one of the most robust and financially strong companies with over 5900 employees and sales reaching $6.23 billion (Forbes, 2015). The company manufactures and sells heavyweight motorcycles and motorcycle parts, accessories, general merchandise. They also offer other related services like financing retailers and insurance. 1.1 Background ...
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...Kotler 1. Define Marketing and Outline the steps in the Marketing Process? Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. The steps in the marketing process are: Situation analysis → Establishing objectives → Selecting the target market→ Developing the marketing mix → Implementation and control. 2. Why is it important to have Marketing as part of the Strategic Plan of an entity? This is because, in reality, nearly all strategic planning questions have marketing implications. In fact, the two major strategic planning questions --What products should we make? And what markets should we serve? --are clearly marketing questions. How do they all fit together in the overall organization of a company? Organizations bring managers and employees together to participate in cross-functional teams. This team members are responsible for all activities involving their products and customers. And marketing managers work closely with team members from production, finance, human resources, and other areas to devise plans that address all concerns. In well-managed organizations, a direct relationship exists between strategic planning and the planning done by managers at all levels. If done properly, strategy planning results in a clearly defined blueprint for management action in...
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...Case Study 5 Kim Chau California Southern University MKT 86500 September 19, 2014 Dr. Hoon Harley-Davidson: Style and Strategy Have Global Reach Introduction In the case of Harley-Davidson, Style and Strategy Have Global Reach, a question of survival in an economic storm is raised – given a new CEO and a revised vision, can Harley-Davidson weather trouble times (Schermerhorn, 2011). Historically, Harley-Davidson was founded by William S. Harley and Arthur Davidson in 1903. They built their first three motorcycles in a shed in Milwaukee. By 1909, they introduced their trademark bike. It had 2-cylinder, v-twin engine which was also the faster bike at the time coming in at 60mph. During World War I, almost half of all Harley-Davidson motorcycles produced are sold for use by the U.S. military. At War's end, it was estimated that the Army used some 20,000 motorcycles in their efforts, most of which were Harley-Davidsons. By 1920, Harley-Davidson is the largest motorcycle manufacturer in the world. New Harley-Davidson motorcycles can be purchased from over 2,000 dealers in 67 countries worldwide (Harley-Davidson Timeline, 2014). In 1969, American Machine and Foundry Co (AMF) merged with Harley. During the early 80’s recession, market shares started to decline, revenue was at an all-time low. According to Daniel Klein’s tariff policy analysis (Klein, D., 1984), in 1980 the company had record sales of $289 million and pretax earnings of $12.3 million, but in 1982 sales...
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...The Strategic Situation of the Harley Davidson Harley Davidson is a 105 year-old company that was originally established by neighbours Arthur Davidson and William Harley; it is obvious that the name of the company was derived from the name of the two founders. Harley Davidson is into the industry of motorcycle. The growth of the said industry started from different developed countries such as the United States, France, Germany, Spain, France as well as the Great Britain. It was further developed after the World War II. Harley Davidson is one of those companies that have a long history as well as have been through several ups and downs throughout their operation. During the past operation of the company there have been many factors that have affected their image, performance, position in the market and the global industry, relationship to their customer, and their overall sales. Figure 1 PEST Analysis of Motorcycle Industry’s Past Development Figure 1 shows the four main factors that have affected the past condition of the motorcycle industry. There are four main political factors that have affected the performance of the overall industry. First is the agreement that will be implemented in order to reduce gas. It requires all the producers as well as manufacturer of different motorcycle companies to reduce pollutants by 60% and it was implemented in February 24, 2003. Another important law that is directly connected to the industry of motorcycle is the process of acquiring...
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...9-600-006 REV: JANUARY 22, 2003 ROBERT D. AUSTIN DEBORAH SOLE MARK J. COTTELEER Harley Davidson Motor Company: Enterprise Software Selection We were in McDonald’s having our initial SiL’K planning meeting when a gunfight erupted in the parking lot. Bullets started flying through the restaurant. Someone said, ‘Everyone down, lock the doors’. We all hid under the table. I’m lying on the floor looking at Dave and Pat—I’m thinking, Holy Smokes, this is unreal. It was just incredible—a real bonding experience! —Garry Berryman, Vice President, Materials Management David Cotteleer, Information Systems (IS) Manager of the Supplier Information Link (SiL’K) project, smiled as he recalled the terror and subsequent camaraderie that had grown out of that unusual beginning. It had set the tone for the partnership that developed between Berryman, Pat Davidson, Manager of Purchasing, Planning and Control, and himself, as they worked collaboratively to develop the specifications for an integrated procurement system to support the new Supply Management Strategy (SMS). Now he and the SiL’K project team were gathered in their “war room” on the top floor of the Harley-Davidson Corporate Headquarters to face another critical moment in the project’s history. After three hectic months of meeting potential software suppliers, reviewing documentation, and evaluating software packages, the SiL’K team had to make a decision. Who should they choose as their supplier and partner in implementing an...
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...Executive Summary For over one hundred years, Harley Davidson, Inc. has excelled in providing consumers with distinguishing style and exceptional quality. They continued to grow and increase profits in the face of much adversity. Their 2003 gross profit margin of 36.02% (Appendix A) was an outstanding example of how they were able to hold high profit margins in such a competitive industry. However, although they have had a strong grip on the American market, 50.3% in 2003 (Appendix A), they remain a luxury item in most foreign countries which has left them much room for expansion globally. Many of Harley Davidson’s internal process worked to their advantage. They always excelled at continuously improving their products, processes, and operations. Employees also stayed involved in the organization (Vision, 2008). Management of the company consistently came up with inventive and intriguing ideas, such as the HOG membership and their Open Road Tour, while continuing to maintain close observation of and strict control of operations. However, not all is well internally in the organization. As mentioned previously, the company has an extremely strong U.S. customer base and had real troubles when trying to acquire more market share internationally (Citarrella and Watson, page 2). They also stayed too focused on the luxury line of products possibly missed on opportunities to acquire more market share through more economic products. Harley Davidson’s innovation in the motorcycle...
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