...Strategic Initiative Paper June 9, 2014 John Wetherington Strategic Initiative Paper Harley-Davidson’s strategic plan is to improve the quality, accurately forecast the associated costs of returns and allowances, and to maintain the firm’s reputation of satisfying customers. Their financial plan involves taking steps to make sure the company can grow and be profitable in the future. There are plenty initiatives that affect the organization’s financial planning and costs and revenue of the supply chain. It is important to stay ethical when trying to supplant other motorcycle companies as the world’s number-one motorcycle when taking these initiatives. Strategic Planning Initiative Harley-Davidson’s 2013 annual report discusses several strategic initiatives. Specifically, their quality control initiative will require financial planning to support successful implementation of the initiative and add value to the company. Harley’s alignment of strategic planning and financial planning will affect costs, sales, and Harley's ability to finance future capital projects. The 2013 Harley-Davidson Annual Report identifies their quality control initiative as an effort in early detection of quality issues, and improvement of manufacturing processes to avoid recalls, legal costs, and delays in introducing new products to the market. Furthermore, the company wishes to improve its methods of estimating potential costs associated with warranty claims, recalls, and class action suits...
Words: 1519 - Pages: 7
...Executive Summary- Analysis and Conclusion BUS499- Business Policy & Strategic Solutions Executive Summary – Environmental Analysis The motorcycle industry is a consolidated industry. The U.S. and international heavyweight motorcycle markets are highly competitive. The major players, such as Yamaha, Suzuki, and Honda, generally have financial and marketing resources that are substantially greater than the non-major players. Competitions in the heavyweight motorcycle market are based on several factors; price, quality, reliability, styling, product features, customer preference, and warranties. Harley’s first segment is the motorcycle and related products business. It included designing, manufacturing, and selling primarily heavyweight touring and custom motorcycles and offering a broad range of related products that included motorcycle parts and accessories and riding apparel. The custom products charge a higher price because of its features, styling, and high resale value. Their target market is mainly in US. By the end of 1997, they have an approximate 48.3% share in the US market, 6.1% share in European, and 16.5% share in Asia/Pacific. New competitors have entered the marketplace because demand for the motorcycles has exceeded production. The demand is prospected to grow in the future, and the switching cost is low. A host of internal and external factors influence a firm's choice of direction and action and, ultimately, its organizational structure and internal...
Words: 903 - Pages: 4
...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 ...
Words: 5291 - Pages: 22
...Harley Davidson Business Analysis Part Three MGT/521 December 20, 2011 Clark MC Carrell Harley Davison Business Analysis Part Three The Harley Davidson Inc. is a company that was formed and founded in Milwaukee, Wisconsin. It is one of a very few that is an American company which manufactures and sells motorcycles. When an owner has a Harley Davison motorcycle they commonly refer to it has a Harley. The company sells motorcycles no smaller than 750 cubic centimeters for engine displacement. The distinct sound coming from the exhaust pipes and distinctive design of their motorcycles has paved the way for the Harley Davidson Company becoming a top seller for the motorcycle community in the world. This popularity in their motorcycles has successfully raised the Harley Davison Company to become a member in the prestigious Fortune 500 club. Harley Davidson recorded total revenue in 2010 of $4,859,336. This is increase from 2009, which recorded total revenue of $4,781,909. They were able to accomplish this by placing emphasis on certain strategies to adapt to changing markets. The Harley Davidson Company has incorporated 4 strategic pillars for a continued success to work towards the growth of the company. They achieved new strategic goals by focusing on the consumers because of the strong objectives to support the consumer through modern and ethical business practices. To include the ethical decisions to become a more environmentally friendly company, new technological...
Words: 773 - Pages: 4
...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 | ...
Words: 6565 - Pages: 27
...Harley-Davidson: Strategic Profile and Case Analysis Della Shelly, Melie Solomon, Jim Tunison Misericordia University Table of Contents Section I: Introduction3 Section II: Company History3 Section IIa: The Road to Decline4 Section IIb: The Turnaround5 Section III: Porter’s 5 Forces6 Section IV: SWOT Analysis7 Section V: Looking Forward11 Section VI: Future Strategic Actions 12 Section VII: Achieving Continued Success 12 Section VII: Conclusion14 Section VII: Sources 15 ------------------------------------------------- Section I: Introduction Harley-Davidson is an American cultural and business icon. Surprisingly, it has achieved its fame and fortune by essentially relying on designing, manufacturing, selling, and servicing a relatively stable product: two wheels, a 45 V-Twin engine, and a set of handlebars. The most striking distinction about Harley is not the fact that it is successful in selling a single product for over one hundred years, but the fact that its motorcycles have maintained its attractiveness with a broad range of consumers. Outlaw bikers, investment bankers, and people in the middle of a midlife crisis, all seem to be drawn to its lure. Harley can attract such a melting pot of consumers because it is a representation of the American dream…Freedom. ------------------------------------------------- Section II: Company History Harley-Davidson enjoyed a decent amount of success soon after its inception in 1903. The founders, William...
Words: 3496 - Pages: 14
...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...
Words: 4307 - Pages: 18
...Harley-Davidson’s strength of its founded brand image, along with its array of products, assists with its lead in the industry. Conversely, evolving emission standards for motorcycles in addition to new competition may have a negative affect on Harley Davidson’s growth. Harley Davidson’s initiatives of quality control and strategic, financial planning continue to bring success to the company through its many ventures. Harley-Davidson owns one of the strongest brands in the world, establishing iconic positioning, that help’s it magnetize and maintain a devoted customer base thus generating revenue. Harley-Davidson’s motorcycles are well known for their long-established style, effortless design, quality, and durability thus remaining strategic.   Through it strength of broad products and service portfolio Harley-Davidson continues to offer an array of products and services ranging from motorcycles to related parts and products, and also through its subsidiary HDMC (Harley-Davidson Motor Company that manufactures Touring, V-rods, Dyna, Softail, and Sporster motorcycles) and HDFS (Harley-Davidson Financial Services). HDMC models are notable for their engines, frames, and suspensions. HDFS (Harley-Davidson Financial Services) has a competitive edge that offers financial services for its products to retail and wholesale financial services for its products in the motorcycles business in the US and Canada regions. HDFS also provides wholesale financial services such...
Words: 269 - Pages: 2
...Methods Of Operations Management At Harley-Davidson Motor Company Policies, Processes, And Methods Of Operations Management At Harley-Davidson Motor Company Join AllFreePapers.com Category: Business Autor: rita 18 December 2013 Words: 2487 | Pages: 10 Introduction The role of operations management (OM) requires a great deal of responsibility. No matter the size or type of business, the technique and knowledge applied by an operations manager when planning, organizing, staffing, leading and controlling, can make or break a company (Heizer & Render, 2011). Harley-Davidson Motor Company is a prime example of a goods producing organization with a history of unstable performance and successful achievements all affected by OM role. The following paper is an overview pertaining to policies, processes, and methods of OM at Harley-Davidson and acknowledgment of how todays' OM decisions affect HD's future as the number one motorcycle manufacturer. Background Harley-Davidson was founded in 1903 in Milwaukee, WI, by William Harley and brothers' Walter, William, and Arthur Davidson. In 1929, 241 U.S. motorcycle manufacturers were in business but the Depression would find only Harley-Davidson and Indian remaining, until Indian closed its doors in 1953 (H-D History, 2012). Harley-Davidson would spend the following decades in aggressive financial struggles, periods of lowly manufacturing, and relentless foreign competition. Today, Harley-Davidson is a worldly traded organization...
Words: 2697 - Pages: 11
...Final Global Business Plan When the U.S. based Harley-Davidson company considers foreign investment in the South American country Peru it is important to consider several factors that will be critical to its success. Past papers have analyzed the country and the region, the political and economic environment, the opportunities and threats involved in doing business there, and how the company’s strengths support those opportunities and how its weaknesses can be mitigated to minimize the threats. This final analysis will review Harley-Davidson’s marketing approach, financial overview, options for financing the foreign investment, the decentralized nature of the organization and its benefits for global operations, and the companies available exit strategies for a Peruvian operation. Marketing Mix Harley-Davidson has chosen the strategic direction of targeting a youth market that is more up to speed with the technologies of today to increase its share in the cruiser market. The average age in Peru is 26.2, and with the introduction of the v-rod motorcycle, Harley-Davidson cut out a sizable share of the cruiser market. That will be the goal of the new market in Peru, with the change being a duel-role product for both off road and street use. To target the younger market by introducing a new product, the company has chosen to concentrate on the following market objectives: market expansion into Peru and product diversification to meet the needs of the customer in their current...
Words: 2089 - Pages: 9
...Harley-Davidson: Enterprise Software Selection History William Harley and Arthur Davidson founded the Harley-Davidson Motor Company in 1903. By 1920, Harley-Davidson was the largest motorcycle manufacturer in the world. The company survived quality problems and financial issues in the mid 1980’s and remains the largest motorcycle manufacturer in the US. Through the years, the Harley brand had developed into a spirit of youthfulness, independence, and recklessness. However these ideals are accompanied by a strong sense of community. The company structure captures this unique culture by utilizing self-directed work teams in an organizational structure of three interlocking circles – Produce Product (PPG), Create Demand (CDC), and Provide Support (PSC). Consistent with this culture, through the years, Harley-Davidson encouraged site independence. However, when Gerry Berryman joined Harley-Davidson in 1995 as VP Materials Management, he recognized the strategic opportunity that existed in optimizing supplier relationships throughout the company. Therefore, in 1996, Harley-Davidson began the development of a corporate Supply Management Strategy (SMS) intended to move the company from a site-specific, transactional mentality to a long-term focus on supplier relationships. By July 1997, the initial planning meeting was held for an integrated procurement system, the supplier information link (SiL’K). Harley-Davidson followed a very thorough and rigorous process...
Words: 1783 - Pages: 8
...Harley-Davidson’s strength of its founded brand image, along with its array of products, assists with its lead in the industry. Conversely, evolving emission standards for motorcycles in addition to new competition may have a negative affect on Harley Davidson’s growth. Harley Davidson’s initiatives of quality control and strategic, financial planning continue to bring success to the company through its many ventures. Harley-Davidson owns one of the strongest brands in the world, establishing iconic positioning, that help’s it magnetize and maintain a devoted customer base thus generating revenue. Harley-Davidson’s motorcycles are well known for their long-established style, effortless design, quality, and durability thus remaining strategic. Through it strength of broad products and service portfolio Harley-Davidson continues to offer an array of products and services ranging from motorcycles to related parts and products, and also through its subsidiary HDMC (Harley-Davidson Motor Company that manufactures Touring, V-rods, Dyna, Softail, and Sporster motorcycles) and HDFS (Harley-Davidson Financial Services). HDMC models are notable for their engines, frames, and suspensions. HDFS (Harley-Davidson Financial Services) has a competitive edge that offers financial services for its products to retail and wholesale financial services for its products in the motorcycles business in the US and Canada regions. HDFS also provides wholesale financial services such as open account...
Words: 269 - Pages: 2
...remarkable motorcycles and extraordinary customer experiences. We fuel the passion for freedom in our customers to express their own individuality. These are the Mission and Vision Statements for the Harley Davidson Motorcycle Company. (Everyday Values) I feel that the company leadership is living these every day. Why I feel this way is because the leadership listens to both their customers and employees on how to make things better. For example on employee James Love and his team of the York PA facility developed an idea on how to eliminate bottlenecks by taking motorcycles off the line and loading them on trucks. Leadership implemented it immediately, doubling the staging capacity and solving a problem that could have slowed down the whole line. (2011 Annual Report) Who are the stakeholders in the Harley Davidson Corporation? I believe that they are their employees, customers and suppliers. One of the things that helps set Harley-Davidson’s culture apart from other businesses is employee involvement. In order to maximize employee involvement, they have minimized traditional hierarchy and layers of management, and the “open door” policy extends throughout the Company, all the way to the C.E.O.’s office. Building the world’s best motorcycles is possible only because so many Harley-Davidson employees are both enthusiasts and customers. Their passion for our products creates the ideal working environment, where employees care about what they design, build and sell. (H-D Our Mission) ...
Words: 870 - Pages: 4
...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...
Words: 3348 - Pages: 14
...Stock Analysis Report: Harley Davidson [pic] Chad Combs Finance 824 6/1/2004 TABLE OF CONTENTS I. Summary of Recommendation – Page 1 II. Brief Company Overview – Pages 1-2 III. Economic Analysis – Pages 2-5 IV. Industry Analysis – Pages 5-6 V. Growth Drivers/Catalysts/Positive Issues – Pages 6-8 VI. Risks/Concerns – Pages 8-10 VII. Sources of Growth – Pages 10-15 VIII. Financials – Pages 15-19 IX. Valuation – Pages 19-21 X. Conclusion – Pages 22-23 Summary of Recommendation Recommendation: Market-weight Reasoning: Increasing Market Demand: The motorcycle market is growing both domestically and internationally. Harley is well poised to take advantage of international opportunities that may present themselves. Draining Affect of Excess Cash: Harley is cash rich firm with very little debt. However Harley has no idea what to do with their extra money. They need to find strategic measures to determine how to invest the cash for that it is obtaining a smaller rate of return (2%) compared to the ROE of its core business (29%). This excess cash is diluting the returns of the firm. Revenue Should Increase: Harley is committed to expanding and as long as the increases to production will give them overall increases...
Words: 6731 - Pages: 27
