...College 12-10-2010 Harley-Davidson, Inc.: A Strategic Audit Sheila Lenz Western Michigan University Follow this and additional works at: http://scholarworks.wmich.edu/honors_theses Part of the Accounting Commons, Sales and Merchandising Commons, and the Strategic Management Policy Commons Recommended Citation Lenz, Sheila, "Harley-Davidson, Inc.: A Strategic Audit" (2010). Honors Theses. Paper 1853. This Honors Thesis-Open Access is brought to you for free and open access by the Lee Honors College at ScholarWorks at WMU. It has been accepted for inclusion in Honors Theses by an authorized administrator of ScholarWorks at WMU. For more information, please contact maira.bundza@wmich.edu. WESTERN MICHIGAN UNIVERSITY Harley-Davidson, Inc.: A Strategic Audit Sheila Lenz December 10, 2010 LEE HONORS COLLEGE - CAPSTONE THESIS 2 Table of Contents Analysis Business 3 Mission Statement Analysis 3 Porter's Exercise 4 Marketing Strategy 5 Financial Analysis 5 IFAS Summary 9 EFAS Summary 10 SFAS Summary 11 Recommendations SWOT Analysis 12 Portfolio Analysis 16 Corporate Strategy 16 Business Competitive Strategy 18 Business Cooperative Strategy 18 Conclusion 19 Works Cited 20 Harley-Davidson, Inc.: A Strategic Audit Analysis Business Harley-Davidson, Inc., known for its famous bar and shield trademark, is based out of Milwaukee, Wisconsin. It is currently a public company with over 100 years of experience producing motorcycles. Harley consists of two...
Words: 4515 - Pages: 19
...Harley Davidson May 17, 2011 Introduction Harley Davidson is a worldwide known motorcycle manufacturing company. The company was started in 1903 when two gentlemen named Bill Harley and Arthur Walter Davidson from Milwaukee, Wisconsin built a one-cylinder motorcycle. They created a reputation for beautiful and reliable motorcycles and with that combination their company has been able to survive for over 100 years. Harley Davidson was incorporated in 1981 and in 1986 it became a publicly held company. Harley Davidson now operates in two segments. They have the motorcycle and a related products segment that sells the motorcycles and in addition sells Harley Davidson merchandise such as t-shirts, leather jackets, and other riding gear. This segment Which segment?? of Harley does sales in North America, Europe/Middle East/Africa, Asia/Pacific and Latin America. Harley also has the financial segment that provides financing insurance to Harley Davidson dealers and to the retail customers. The financial segment is only offered in the United States and Canada. (pg. 6) In this report we are going to look at the Harley Davidson Corporation and discuss their financial performance in 2010. For a better understanding on how the corporation performed, we will also take a look at the 2009 financial statements and use it as a reference to show how the company improved or declined in 2010. We are going to look...
Words: 2951 - Pages: 12
...Background: Harley-Davidson bikes are to the extent that as item. The organization enjoys intensely steadfast clients, and about as faithful representatives. The organization commended its centennial year in 2001, which in itself was downright an inexplicable occurrence given all of the opportunities that the organization needed to go bankrupt. The organization fell on difficult times in the early 1980 s and even played with liquidation. Administration did a turnaround in the mid-1980 s, nevertheless, bringing about a fiscally sound open organization today. One of the territories of turnaround was in depending on workers to help stay with the above water - not in financial matters specifically, but instead in guaranteeing that Harley come back to its standard and notoriety for quality. Quality had endured so in the 1960 s and 1970 s that the regular expression about Harley-Davidson cruisers was that a five-mile trek comprised of riding for one and pushing for four. Harley-Davidson has now come back to its previous days of value, including production efficiency along the way. It controls 54 percent of the local market in overwhelming bikes, and dedicated managers the nation over manage dynamic owners clubs and hold weekend rallies in the mid- to late 1990 s, Harley-Davidson's administration turned its consideration to internal effectiveness. In spite of the fact that it had made extraordinary additions here, individual locales still operated more than just freely from the organization...
Words: 1909 - Pages: 8
...imaginations of its engineers rather than by goal-oriented strategic decisions. Minoli described Ducati’s top management as operating in “a structured chaos” (Gavetti, 2004, pp.861). He believed that by incorporating certain basic structural changes and by redefining company’s strategic goals, it could be turned into a profitable brand-driven company. Ducati’s turnaround focused on brand building which was supported by the reconfiguration of a number of activities ranging from increased efficiency in the production process to broadening its customer base. Having almost doubled its market share in 2001, Minoli wanted to find new sources of growth. Among others he considered the cruiser market, currently dominated by Harley Davidson. His goal was to compete directly with Harley Davidson in Europe by introducing a cruiser that combined Ducati’s high performance engine with its own unique design. This essay will begin with a SWOT analysis of Ducati as it stands at the end of its turnaround program. The analysis will bring to light Ducati’s strategic position in the industry as well as any potential that the company may...
Words: 3191 - Pages: 13
...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...
Words: 7709 - Pages: 31
...Harley Davidson's Traditional Targeting and Positioning Strategy I am a motorcycle enthusiast who has been riding since 1997. I’ve always enjoyed my passion for the open road and the feeling of being free. This Harley-Davidson motorcycle provides me with a euphoric experience of “the wind is beneath my wings”. I like enjoy the fundamental aspects of riding quickly but safely. I get consumed in it because you can lose track of time and ride all day and night. The best part about it is, there doesn’t have to be a defined end destination, you can just get on it and go. You have the capability to travel where most cars can’t because of its maneuverability. Harley Davidson’s motorcycles are classic custom bikes that provide the comforts of cruising, sporting, or rugged cycling. This case will briefly describe Harley Davidson's traditional targeting and positioning strategy to attract women customers. Harley-Davidson and motorcycles are usually considered a masculine sport intended for men (Mitchel). However, there are women out there who enjoy the freedom of riding their own Harley. 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. To fill their psychological needs...
Words: 2081 - Pages: 9
...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...
Words: 9942 - Pages: 40
...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...
Words: 9390 - Pages: 38
...Background: Harley-Davidson bikes are to the extent that as item. The organization enjoys intensely steadfast clients, and about as faithful representatives. The organization commended its centennial year in 2001, which in itself was downright an inexplicable occurrence given all of the opportunities that the organization needed to go bankrupt. The organization fell on difficult times in the early 1980 s and even played with liquidation. Administration did a turnaround in the mid-1980 s, nevertheless, bringing about a fiscally sound open organization today. One of the territories of turnaround was in depending on workers to help stay with the above water - not in financial matters specifically, but instead in guaranteeing that Harley come back to its standard and notoriety for quality. Quality had endured so in the 1960 s and 1970 s that the regular expression about Harley-Davidson cruisers was that a five-mile trek comprised of riding for one and pushing for four. Harley-Davidson has now come back to its previous days of value, including production efficiency along the way. It controls 54 percent of the local market in overwhelming bikes, and dedicated managers the nation over manage dynamic owners clubs and hold weekend rallies in the mid- to late 1990 s, Harley-Davidson's administration turned its consideration to internal effectiveness. In spite of the fact that it had made extraordinary additions here, individual locales still operated more than just freely from the organization...
Words: 1914 - Pages: 8
...Building Brands - Of the Consumers, By the Consumers, For the Consumers In July 2006, HUL (then HLL) launched India’s first community portal exclusively belonging to a brand – The Sunsilk “Gang of Girls”. The initiative was an instant success with the number of members crossing the half million mark within six months of launching. It was HUL’s attempt to revive the Sunsilk brand. Today with a member base of 7.5 lakh users (a mere 2.5 lakh users in four and a half years), the success of Sunsilk’s brand building exercise is debatable. But, what cannot be denied is HUL’s early recognition of a marketing channel – Conversational Marketing - that is moving towards becoming the trend for marketing and brand building in 2012. The launch of Orkut in 2004 (later in India in 2006) and the rise of Facebook’s usage as everyday’s must activity, paved the way for a new kind of a marketing channel which we all know as “Social Media”. Today almost each brand has their own Facebook page which is “liked” by fans, where the brand gets promoted each time the target segment logs onto Facebook. But, not all brands have sufficiently leveraged the true value of social media. Social Media have been extensively used for advertising and sales promotion. So much so that the value of communities like Facebook to marketers has been questioned as to whether it is the right place to reach your consumer. The regular argument is the fact that Facebook advertisements have critically low Click-Through-Rates...
Words: 2212 - Pages: 9
...I' Aftermath of the Honda Invasion: 1965-1981 * 109 C11A1'TEJ .EJ'G-HT - Reaction of Harley-Davidson to the Honda Threat Faced with an invasion of its staid and static U.S. market, `how did Harley react to the intruder? It did not react-at least not uatil far too late. Harley-Davidson considered itself the market leader in full-size motorcycles. While the company might shudder at the image tied in with its product's usage by the leather-jacket types, it took solace in knowing that almost every U.S. police department used its machines. Perhaps this is what led Harley to stand aside and complacently watch Honda make deep inroads into the American motorcycle market. The management saw no threat in Honda's thrust into the market with lightweight machines. The Harley attitude was exemplified in this statement by William H. Davidson, president of the company and son of the founder: Basically, we don't believe in the lightweight market. We believe that motorcycles are sport vehicles, not transportation vehicles. Even if a man says he bought a motorcycle for transportation, it's generally for leisure-time use. The liglthveight motorcycle is only supplemental Back around World War I, a number of companies caine out with light weight bikes. We came out with one ourselves. They never got anywhere. We've seen what happens to these small sizes.L Eventually Harley recognized that the Honda phenomenon was not an aberra lion, and that there was a new factor in the markel The company...
Words: 6139 - Pages: 25
...STRATEGIC MANAGEMENT Case Analysis CASE: Harley Davidson, Inc- 2008 By Julian Kee Synopsis Harley-Davidson is one the leading motorcycle manufacturers in the world. It’s hard to imagine the global brand’s simple beginning. In 1901, Harley-Davidson motor company started in a backyard shed by friends William Harley and Arthur R. Davidson who wanted to create their own motorcycles. In 1907, the company had grown to become incorporated. Harley-Davidson was acquired by AMF in 1969, however repurchased in 1981 by the Vaughn Beals. The company then underwent changes to production an inventory management. Since 1996, Harley-Davidson has focused only on producing motorcycles and accessories. The company is run by a 38-year employee name James C. Ziemer, who has experience in many different positions. He is supported by a board of directors with diverse professional backgrounds. Together, they oversee the US and global operations which includes countries like Canada, Latin America, and Europe. Harley-Davidson has two different business segments which include motorcycles and financial services. The current economic conditions have affected all industry including motorcycles. While Harley-Davidson has proven to do well during the recession, they have also faced some challenges. As the economic conditions change, Harley- Davidson has implemented new marketing strategies and e-commerce to gain a competitive advantage. Resources Strong reputation and...
Words: 1881 - Pages: 8
...III. External Analysis Opportunities: The second of the SWOT analysis includes a look at Harley Davidson’s biggest opportunities and threats. Harley currently operates in what is known as they heavyweight cycle market (over 650cc engines), this means that the sheer size and weight of their bikes set them apart from some of their other lighter, faster rivals. The heavyweight market can be broken down into three different segments cruisers, touring bikes, and performance models. Cruisers are the bikes that are generally associated with Harley Davidson’s, big, loud, low riders that are generally considered to be macho cycles. This style was introduced by Harley and makes up for more than half of the market. Touring bikes are motorcycles that are specifically designed for long distance riding. These bikes normally have features that include two way radios for the driver and passenger, heaters, radio, padded seats etc. This section of the market is dominated by car companies such as Honda and BMW who have engineered their bikes to provide the rider with a smoother, more comfortable ride over long distances. Lastly, performance models are modeled after racing bikes only larger. These bikes have the latest in high-tech engines and put their emphasis on speed and acceleration instead of comfort or styling. These bikes are the ones that generally dominate the European and Asian markets. One of Harley’s biggest opportunities for growth is overseas in areas such as Europe, China...
Words: 1513 - Pages: 7
...Harley Davidson case study Harley-Davidson’s business strategy is one that includes exporting as well as being involved in joint ventures. Because Harley-Davidson bikes proved to be as popular abroad as they were in the United States, the company decided to think more seriously about international markets and exporting. In addition, Harley launched a joint venture with Porsche AG of Stuttgart, Germany. Companies and firms like Harley engage in joint ventures, or co-ownership arrangements, in order to establish a direct investment presence in a foreign country that pool resources and share risks and control for business operations. In this joint venture with Porsche, Harley hoped to source and assemble power-train components for use in potential new motorcycle products. I would consider Harley to be a multinational corporation. If I was Harley’s top management, I would consider expanding in regions such as Asia or Europe. I would consider expanding in Asia because Asia is a “megamarket,” meaning it is still gaining as a power in the world economy while also already achieving superpower status. In Asian regions, “opportunity” is always the watchword of the day. I feel that Europe would also be a good place to expand because Europe is currently a place going through dramatic political and economic development. Europe is a region that is willing to eliminate trade barriers, create uniform minimum technical product standards, unify financial regulations, and offer...
Words: 694 - Pages: 3
...National H.O.G Office P.O. Box 453 Milwaukee, WI 53201 Phone: (800) 258-2464 Fax: (414) 343-4515 Web: www.harley-davidson.com March 30, 2014 Mr. Pete Dix 30 Estes Court Waterford, MI 48327 Dear Mr. Dix, My name is Nikki Hancock; I am the Corporate Communications Director at Harley-Davidson’s corporate headquarters. Harley-Davison takes their customer’s satisfaction very seriously and it is our responsibility to make sure we provide the legendary brand with the signature engine roar and laid-back riding style to each and every one that owns and is part of the Harley family. I understand when you purchase your motorcycle you have certain standards you are looking for and expect. I understand you had some concerns when it came to your 2013 CVO Road King. The paint was rusted underneath the clear coat, the chrome parts were defective, and had poor gas mileage. I apologize the Road King was not up to par with your expectations. I have had another dealer inspect or motorcycle free of charge. Upon the inspection the dealer was able to find the motorcycle was performing up to par and was in good driving condition. They were unable to locate any rust under the clear coat. However within the inspection the chrome parts were found defective and were replaced free of charge under warranty. I understand that you are requesting a full price refund for the motorcycle due to the Michigan’s Lemon Law. After further research and legal advise it is understood that...
Words: 379 - Pages: 2
