...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...
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...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...
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...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...
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...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...
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...enable us to serve your large party needs more often and without delay. We are grateful to have you people giving us that concerned. Therefore, my staff would love to attend the new annual auction dinner, but due to some management obligation at the upper level, we will not be able to participate in the dinner party for this time. However, this meeting was scheduled for the past two month and half, if my staff and I have known earlier about the program we would manage to be there at the dinner. I hope you people understand our problematic situation due to which my staff and I declined this auction dinner. In regard to this concern about this important dinner, my staff would recommend that your management invite Mr. Peter Miller CEO of Harley Davidson, Inc., that will take our place. However, we believe that Mr. Miller and his staff will be able to attend the new annual auction dinner scheduled for that event. For your convenience I am attaching his contact information with this letter. If your management need any other help or concerned from our company, please feel free to contact us at (502) 407- 1575 or e-mail.com us @ luogon_torwon@yahoo.com. Regards Torwon Luogon Director of Vision...
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...“Outside the Cage”: A Look at Harley-Davidson’s Culture Clinton M. Colley Shorter University LDSP 6220: Organizational Culture and Politics Dr. Craig Shull February 18, 2013 “Four wheels move the body, two wheels move the soul” is an anonymous quote that carries significant meaning to motorcycle riders. Often times motorcycle enthusiasts can be heard telling someone that drives a car or a truck to “get out of the cage.” There is a sense of freedom and independence when riding a motorcycle. For thousands upon thousands of people around the world one name comes to mind when talking about motorcycles. That name is Harley-Davidson (H-D). Even to the “non-rider” the name Harley-Davidson is often the first brand thought of when motorcycles are mentioned. Sometimes the thoughts might conjure a thought of open plains and the wind whipping through your hair. Other times the thoughts might be more sinister like the Hells Angels or other violent motorcycle gangs. One thing is certain; the Harley-Davidson “bar & shield” logo is one of the most known logos across the United States and possibly the world. Harley-Davidson has not always had the success and customer loyalty that they have today. The success that H-D has recently enjoyed can be strongly tied to its service-minded attitude and almost cult-like customer base. This paper will take a closer look at the culture of Harley-Davidson by looking at the norms, beliefs, and values of Harley-Davidson as a company, some of its...
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...International University Feb 24th 2012 Introduction Harley-Davidson is an American Motorcycle Manufacturer founded in Milwaukee Wisconsin in 1903. It was one of two American Motorcycle companies to survive the Great Depression. Harley was founded by three brothers, William, Walter, and Authur Davidson with William Harley. Harley became the biggest motorcycle manufacturer in the world by 1920. Supplying motorcycles from WWI to todays society, Harley has become not only an American icon but a worldwide icon. With a net income of over 146 million dollars in 2010 it is on the rise from the dismal 2009. In this report we will explore Harley from, its technology practices, to their organizational structure, to their annual report. We will research its marketing and promotion towards its future and now customers. In laymen terms, we will look at Harley Davidson in and out. 1 The company that I have chosen to do my course project on is Harley-Davidson. Harley-Davidson is a motor company based out of Milwaukee, Wisconsin. Officially established in 1903 by William S. Harley, it was one of few companies to have lasted the Great Depression. With income of 4.86 billion a year ,the company employs 6,300 employees, which produces motorcycles. Who are the customers of this company's products or services? As of 2005; the median age of Harley owner is 46.7. The average household income of a Harley owner is $83,000. The average price of all 34 models of Harley's is...
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...Hells Angels expanded nationwide. Over the past 30 years, Hells Angels has continued to expand. Before one can start to understand what being a Hells Angel is about, it’s essential that one understands the role of the Harley Davison motorcycle. The Harley Davison is an American icon of freedom and power. American built with American iron, it’s a statement of all things American. The bikes are big, powerful, and flashy. The army utilized the bikes in World War II so they already had a special place the hearts of the founding members of the Angels. As the company expanded and engineered more and more powerful machines the desire for a “hog” kept increasing as well. Currently, Hells Angels claims 3000 to 3500 members and more than 230 chapters in 27 countries. Membership has increased by 10% annually during the past five years. In the United States, HAMC is active throughout the country. Due to the international scope of the organization, Hells Angels are able to coordinate drug smuggling operations with prominent drug trafficking organizations, such as the Italian Mafia and Columbian cartels. In this way, criminal connections are easily enhanced. Hells Angel’s membership is limited to male Whites, Hispanics, Asians 18 years old or older, and Harley-Davidson owners. The membership process is very involved. The preliminary stage ensures...
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...Harley Davidson has had a rollercoaster ride of success. During its earlier years, Harley quickly jumped to the top of motorcycle sales worldwide. With its simple V-Twin engine, Harley had created a bike that was both appealing and reliable. The biggest appeal was how easy the engine was to tinker with as motorcycle mechanics were far and few between, but most of all the sound of “raw power” was what owners loved. This love for raw power and made in America machinery, brought many loyal customer to Harley throughout the 40’s and 50’s. These customers were generally viewed as tough people, such as U.S. Military, Hell’s Angels, and Hollywood rebels. Harley became and America icon and was now associated with things like the U.S. Flag and bald eagles. As Harley continued to lead the way in market share and sales America, the Japanese wanted its piece of this market share. Honda’s entry into the U.S. market was nearly opposite of Harley in their marketing approach, as they stumbled onto a segment of customers being more “Family-Oriented”. In 1965, Honda was selling 1 out of every 2 motorcycles purchased in the U.S. More Japanese firms began to follow Honda, offering quieter, faster, and less expensive motorcycles and began leading the way in sales and market share in the U.S. As Harley’s bottom line began to dwindle away, they had to go public to raise capital. After as dismal IPO, Harley was eventually acquired by AMF who’s CEO tried to drastically change Harley’s handcrafted...
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...1. Was linking the software selection process to the overall supplier management strategy appropriate? That was appropriate to do that because the process will bring in the requirement and capabilities necessary so that the company could recognize the strategic vision. Also, linking the software process may take more time than usual but " when your strategy is deep and far reaching, what you gain by your calculations is much. So you can win before you fight." Besides that, software selection process was necessary to build the necessary trust, enthusiasm and engagement in SMS. That process seemed to be a good chance that to get the organization to "think out of the box" and considered as a good foundation to start getting everyone think about procurement differently. Overall, the process played a key role in the company's strategy. They had more time to think and interact with the problem which may incur. Other than that, they can recognize their need and be able to make some changes or improvement. As working on the process, they understand the criteria of the software provider they need for their strategy. The software selection seems to be efficient and appropriate the the overall supplier management. 2. Did all the steps the team took during the selection process add value to their decision? Every step which the team had done during the selection did add a certain value to their decision. As the first step, they formed a project team by handpick influential...
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...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...
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...MEMORANDUM To: Chief Operating Officer From: Organization Consultant Date: 28 March 2011 Subject: BRIEFING ON THE HARLEY DAVIDSON TOUR INTRODUCTION Having attended the group tour on the Soft ail facility of Harley Davidson on March 3rd, a world class manufacturer of motor bikes, I would like to highlight my findings as follows FINDINGS The company is making changes in terms of standardization, employee empowerment, and use of state of the art technology and focusing on the safety of both the employees and customers. QUALITY MANAGEMENT * The company focuses on customization where different configurations are achieved using a single assembly line. * The employees are encouraged to think and make relevant decisions to improve efficiency. * The use of hand guards to protect the paint and for scratch free removal. * The ranks are wrapped up in foam to prevent dents. INVENTORY MANAGEMENT * Harley Davidson plans on acquiring SAP to effectively manage its inventory. * The SAP system helps in keeping track of inventory from A to C. * Inventory is classified as A, B and C depending on the value parts needed. * Inventory system contains information regarding every item. * The use of Just in Time as an inventory management system reduces material handling and enables quick processing of shipments. HUMAN RESOURCE STRATEGY * Focused on team training classes for good documentation of production work. PROCESS STRATEGY * There are...
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...Final Examination Question Last Month Quentin lost his job working in the UNSW Law School photocopy room, and on his way home purchased a lottery ticket. He won big and bought a business, called Abdo ’s Diamond Cutting Works. Quentin places an order with Abdo ’s cousin in Damascus, Syria, Mussa, to buy 3 newest model diamond cutting machines at a price of $150,000 per machine “Delivered Duty Paid” at Darling Harbour, Sydney. (At the time of the order, Abdo only had one machine.) These cutting machines can only be purchased in Syria. Each new machine is to be delivered at Darling Harbour, Sydney, at the end of each month commencing June 2011. The Mussa Machines Ltd purchase order form that Quentin signs says in relevant part: “13. Time is of the essence for payment. 14. Delivery must occur within 30 days of scheduled delivery dates.”” After delivering in June, Mussa tells Quentin that he will deliver no more machines. Mussa says that because Syria has cut off diplomatic relations with Australia because the Australian Government has unlawfully interfered in Syria’s internal affairs, and he has been ordered by the Syrian Government to deliver all goods destined for Australia to the Syrian Government stores in Damascus instead. He says that the Syrian secret police are already investigating him, and he cannot say any more about it. Quentin does not want to pay for any of the machines at all. He tells you he has decided to keep using Abdo ’s old diamond cutting machine...
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...2 Introduction •Harley Davidson’s (HD) heritage is symbolic of the American dream •HD’s unique potato-potato-potato sound created by its famous V-twin engine is still a trend among riders •HD was formed in 1903 in the Davidson family’s backyard •During both World War I and II, HD’s contribution to U.S efforts increased its sales and popularity in US and became a prominent symbol of so called American Dream •HD operates in two segments that are financial services and motorcycles and related products 3 Vision & Mission Vision: Harley Davidson is an action oriented international company , a leader in its commitment to continuously improve its mutually beneficial relationships with stakeholders (customers, suppliers, employees, shareholders, government and society). HD believes to key the success is to balance stakeholders’ interests through the empowerment of all employees to focus on value-added activities. Mission: HD fulfills dreams through the experiences of motorcycling, by providing to motorcyclists and to the general public and expending line of motorcycles, branded products and services in selected market segments. Philosophy of HD: • • • • • Tell the truth Be fair Keep your promises Respect the individual Encourage intellectual curiosity. 4 Strategical Targets of HD The main strategical targets of HD are as follows: • Focusing on Harley Davidson brand image • Customer-led management strategy (more people, in more places to choose...
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...Harley We think it would be interesting to quote first Harley-Davidson's mission, in order to get a first approach of what is the purpose of the company from their point of view. The mission talks first about dreams, rather than motorcycles, which is what the public has in mind. This mission says: "We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments." We are going to see how their promotional strategy keeps the track of their mission statement, and how they try always to fulfill those dreams. Harley-Davidson uses advertising and personnel selling for their promotional mix. The advertising that Harley-Davidson utilizes nationally are four to five television commercials a year. These commercials are institutional because they are advertising the company and not a specific product. They also have institutional advertisements in national magazines such as Road & Track, Popular Science, and Fortune as well as specific motorcycle magazines as Easy Rider. Locally, individual Harley-Davidson dealers advertise on the radio and through direct mail. Harley-Davidson uses personnel through their 595 dealerships located throughout the United States. A customer has to go to a dealership in order to purchase a motorcycle. While they are there they are attended to by sales people that answer any questions they have and help them...
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