...think of strength, the willingness to fight no matter what, and above all being muscle toned, risky, loud and obnoxious badass on a bike. This isn’t exactly what Harley-Davidson wanted to portray, but it’s what made them into the company they are today. Harley-Davidson was started by no other than William S. Harley and Arthur and Walter Davidson, a few friends fascinated by motors and bikes in a rural part of Milwaukee, Wisconsin. The first blueprint sketched by William S. Harley was in early 1901, but the first actual sale of a completed bike wasn’t till late 1906. With nothing more than a small machine shop, a handful of old motors, and a few bicycles the friends started on their road to fame and fortune. They wanted to manufacturer these modified bicycles to the public in hopes they would make money, the main driving force behind any entrepreneur back then and now. Beginning its journey through sales in World War I and II the Harley brand was thrust onto the scene of racing and leisure riding from veterans and active duty members to civilians and celebrities. Being one of the only manufacturers to survive not only the war, but also the Great Depression, Harley-Davidson had its fair share of ups and downs. The image of Harley started with the production of the “F-Head” motor, known as the workhorse of the Harley-Davidson Motorcycle, and has since been a leading innovator in the market of motorcycles today with more than 6 different engine types, 5 main body styles, and endless...
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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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...Today, Harley Davidson motorcycles are a household name, but it hasn’t always been that way. It began way back in 1901, when a young man named William S. Harley had a vision for attaching an engine to a bicycle. William had a friend named Arthur Davidson who embraced his concept. Together, they began working endless hours in a small wooden shed, with the words “Harley Davidson” scrawled on the door. By 1903, they rolled out the first production Harley Davidson motorcycle. The legendary “Bar and Shield” logo became the defining symbol of Harley Davidson motorcycles in 1910. The logo is representative of strength and ruggedness. The design was patented in 1911 and continues to be used today. In 1920, motorcycle racing legend, Leslie “Red” Parkhurst, broke numerous speed records on a Harley Davidson racing motorcycle. Each time Parkhurst won a race, he would carry a pig on a victory lap and it was during this time the term “hog” became associated with Harley Davidson motorcycles. During World War I nearly half of the Harley Davidson motorcycles produced were sold to the United States Army. Throughout the 1920s, major changes took place to the design. The most notable was the change in the gas tank, which was switched to the now infamous teardrop shape. In 1928, Harley Davidson introduced the first twin-cam engine and front wheel brakes. These modifications allowed Harley Davidson motorcycles to reach speeds in excess of 85 mph. Throughout the 1930s, Harley Davidson motorcycles...
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...Despite their conception in 1903, Harley-Davidson and the motorcycle industry as a whole didn’t really take off until after the Second World War. Many people rode motorcycles during the war, with Harley-Davidson themselves supplying almost 90,000 motorcycles for the U.S. military during this time. Many veterans chose to purchase motorcycles upon returning home, as they enjoyed riding during the war and wanted to continue riding in their civilian life. This generation known as the "baby-boomers" quickly became the main target audience for many of Harley-Davidson’s marketing efforts. With sales increasing and the industry growing, many "motorcycle clubs" and "rallies" were introduced. Unfortunately, due to the lewd behavior displayed by most people associated with these clubs and rallies, bikers typically had an image of being disorderly and raucous. Harley-Davidson’s image itself took a big shot due to the Hells Angels. This was a motorcycle gang wishing to become notorious for "drug trafficking and other organized crime activities," who used only Harley-Davidson motorcycles. All of this combined to lead to a decline in demand and sales throughout the entire industry during the 1960’s. The industry was really helped out with the release of the Hollywood film Easy Rider in 1969. This film helped change the public’s perception of bikers and sparked an increase in motorcycle demand which has lasted to this day. The motorcycle industry offers products which can be viewed as luxuries...
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...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...
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...Harley Davidson Case In: Business and Management Harley Davidson Case Porter’s Five-Force Analysis: 1. Threat of new entrants: (Low) * Requires high capital investment to enter the business of the scale economies in production, research, marketing and service of this industry is high. * Brand identification of Harley Davidson has been strongly established for years. New entrant will have to overcome customer loyalty of Harley. 2. Bargaining power of suppliers: (Moderate/High) * Harley’s suppliers are not fragmented so they have a high bargaining power. * Switching cost of changing suppliers is high because of the nature of Harley’s products- -could require investing heavily to be a supplier. 3. Bargaining power of buyers: (low) * Since product is differentiated, customer tends not to be price sensitive. * Product is differentiated or targeted for niche market therefore the buyer will not find the alternative product. 4. Threat of Substitutes: (High) * Customers’ taste is shifted into Japanese motorbikes. Ex. Suzuki * Frequent product introductions and continuous improvements in price. 5. Rivalry: (high) * Lack of products differentiation or narrow product line. * Rivals like Honda are diverse in strategies, origins and personalities. SWOT Analysis 1. Strengths: Domestic and International market share, financial status (The company’s revenues had grown at a compounded annual rate of 16.6 per- cent since 1994 to reach $4...
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...1. What new risks did Harley-Davidson face by integrating eBusiness into its supply-chain management system and by allowing suppliers to have access to the company’s Intranet? E-commerce is a fantastic way for businesses to connect with customers around the world in a way that has never before been possible. Yet, that is not to say that eBusiness does not have risks that entrepreneurs must be aware of before setting up a presence online. Harley-Davidson faces a variety of risks by integrating eBusiness into its supply-chain management system and allowing supplier to have access to the company’s Intranet. 1) Although the eBusiness system implemented by Harley-Davidson is full-proof, considerable risks associated with hackers, viruses, and interception of credit card numbers travelling over the communication lines still exist in the system. Credit card information can be easily intercepted via internet for deceitful purposes increasing the risk of fraudulent transactions. 2) Technology itself poses a risk to eBusiness, simply because ecommerce is so dependent on it. Infrastructure problems, such as a server malfunctioning, can shut down a website. Likewise, viruses can delete valuable data, and software glitches can keep a site from working properly. 3) Suppliers may violate confidentiality agreements and disclose confidential information to competitors. They can also manipulate the computer system and take advantage of their increased access to Harley-Davidson’s purchasing...
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...Harley-Davidson maintains a large margin in its dominance in the U.S. Heavyweight Motorcycle market as compared to its major competitors. While the United States is HOG's most important market, the company sells motorcycles in many other markets worldwide. Harley-Davidson owns one of the strongest brands in the world, which helps it attract and retain a loyal customer base. The company established a strong brand image with its motorcycles achieving iconic status and being ranked among the world’s most valuable brands. Harley-Davidson’s motorcycles are known for their traditional styling, design simplicity, durability and quality which are why customers deem HD’s premium price to be “acceptable or reasonable”. The Harley-Davidson brand has significantly contributed to the success of the company by building strong market recognition and a loyal customer base. * Long Term Risk Overall Harley Davidson is a strong company with excellent margins and constantly growing revenues. The main concern for Harley is whether or not they can sustain their growth in the face of improvements in their competitors’ products and a maturing market. One major trend facing Harley Davidson is that average age of a Harley Davidson is getting higher, meaning the company is not as successful now as it has been in the past at attracting new and younger riders. This is also evidenced by the slightly weaker sales in less powerful entry level bikes. Many of HD’s competitors are more diversified...
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...market in terms of size and growth. More women are riding motorcycles today than ever before. This trend is on the increase, as was shown in the video. Harley Davidson market value has grown from 6.4% in 1990 to 10% presently. More women today are earning higher income and are empowered by this fact. This has brought about a sense of independence and freedom. More women are buying motorcycles today to fill their psychological need of freedom and to express their individualism. Harley Davidson has recognized the women motorcycle market as a good growth opportunity for the company and is targeting this segment by building customized motorcycles with women in mind and also by advertising in some women magazines. Discuss why the woman motorcyclist market is a good strategic fit with Harley Davidson. The women motorcyclist market is a good fit with Harley Davison because more and more women are buying motorcycle to express their independence and their adventurous side. Today, women rider constitutes about 12% of Harley Davidson sales. This still leaves a potential growth opportunity for the company. There is no need to make expensive changes or to build motorcycles specifically for women. Discuss specific tactics Harley Davidson utilizes to attract women motorcyclist; How these tactics differ from attracting men. Harley Davidson recognizes the growth potential in marketing to women and has taken a number of steps to attract women. One of the tactics that they utilize in attracting...
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...“Harley Davidson” Team #1: Tamala Hamilton Emmy C. Rodriguez Jason N. Cedillo Nov. 17, 2007 “Harley-Davidson” Harley-Davidson motorcycles have been around for over 100 years, and from what Harley has been able to accomplish throughout the years, I think it is safe to say that Harley-Davidson will be around for another 100 years. Since its first motorcycle built in 1903 by William Harley and the Davidson brothers, Harley-Davidson has been transformed into an American icon. Every customer feels like each Harley-Davidson bike is custom built to suit their individual taste and style like the loud roaring sound, unique powerful engine, and its rugged bad boy image. With all the personas and symbolic labels that Harley-Davidson possess, this little bad boy company manages to incorporate the concept of family first to its employees making it one of the best companies to work for. The road to success did not come easy for the Harley-Davidson company. The company had several ups and downs that nearly forced the company to shut its doors of operation permanently. With the many different CEO leaders came different leadership styles, each with its own distinctiveness that rescued the company to only bring it back down to near destruction. The Harley-Davidson company finally resurrected itself when a group of senior executives managed to borrow enough money to purchase a buyout of the company to take full control of Harley-Davidson and make the necessary changes...
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...BUSINESS STRETEGY | HARLEY DAVIDSON | | SUBMITTED BY- MANISHA YADAV(IB/05/04) | | SUBMITTED TO-MR. AMIT SAREEN | 9/14/2013 | | Table of content Chapters | Page No | Introduction | | History | | Value | | Vision,Mission | | Product Extension | | Intensive Strategies | | Organizational Chart | | Management | | İnternal & External Forces | | Micheal Porter Analysis | | Market Share | | Human Resource | | Strategic mix | | Competitive Profile Mix | | Internal Analysis Factor Mix | | SWOT & SWOT Matrix | | BCG | | Conclusion | | Possible Strategies | | Introduction Harley-Davidson is an American motorcycle manufacturer with a rich history and cultural tradition. Founded in 1903 in Milwaukee, WI, Harley just celebrated its 100th anniversary with a series of events around the world that culminated in hundreds of thousands of motorcyclists rallying last summer on the shores of Lake Michigan. In 1929, there were 241 motorcycle manufacturers in the US. After the Depression, only two remained: Harley and Indian. By 1953, Indian went out of business, leaving Harley-Davidson as the only American motorcycle manufacturer. Financial difficulties in the 1970’s led to the parent company, AMF putting the motorcycle division up for sale. Without a buyer, a group of Harley managers bought out the company and rescued it with a business turnaround that included brand extensions into licensed...
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...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...
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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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...APPLICATIONS – NORDSTROM Diagnosis Company Background Industry: Retailer (Upscale US department store chain). Founder: John W. Nordstrom and Carl F. Wallin. Headquarters: Seattle, Washington, US. Product: Footwear, clothing, accessories, handbags, jewelry, cosmetics, and fragrances. Number of location: 112 full-time stores, 69 Nordstrom Rack clearance stores, 2 Jeffrey Boutiques and 1 clearance stores Connecting with customer 1) Maintain "no question asked" return policy. 2) Sales representatives send thank-you cards to customers who shop there and have hand-delivered special orders to customer's homes. 3) Installed a tool called Personal Book at its registers that allow salespeople to enter and recall customer's specific purchases in order to better personalize their shopping experiences 4) Provides customers with multichannel for shopping, allowing them to buy something online and pick it up at a store within an hour. 5) Fashion Rewards Program, rewards customers on four different levels based on their annual spending. a. Customers who spend $10,000 annually receive complementary alterations, free shipping, a 24-hour fashion emergency hotline, and access to a personal concierge service b. Customers at the highest rewards level ($20,000 spent annually) also receive private shopping trips complete with restocked dressing rooms in the customer's specific size, champagne, and live piano music; tickets to Nordstrom's runway fashion shows; and access to exclusive travel and fashion...
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...improve the cost structure and restructure its businesses in order to become more efficient and profitable in the future (Forbes, 2011). • New markets. Harley-Davidson is penetrating international markets using strong brand name. In 2010, the company has opened three new dealerships in India and a subsidiary operation in China (Forbes, 2011). • Strong internal culture. Among its values Harley-Davidson highlights “tell the truth”, “be fair”, “keep your promises”, “respect the individual”, and “encourage intellectual curiosity”. The organisation is aimed at employee involvement and creation of strong relations with consumers (Harley-Davidson, 2004). Weaknesses • Expensive Product Range. Harley-Davidson suggests an expensive product range that attracts only high-income consumers. This problem has become more noticeable due to lower customer purchasing power in the current economic situation (Forbes, 2011). • Difficult to change the target audience. Today the organisation fails in attraction of new customers. According to US purchasing profile of Harley-Davidson in 2011, 65% of buyers owned a Harley-Davidson motorcycle previously at any point during life time, while only 35% of buyers are new to Harley-Davidson (owned competitive motorcycle or first motorcycle). • Harley-Davidson culture is out-of-date. The culture of Harley-Davidson that the organisation has created...
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