...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...
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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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...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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...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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...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...
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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...
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...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...
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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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...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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...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...
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...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...
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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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... * 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 $4.6 billion in 2003—marking the 18th consecutive year of record revenues and earnings), and product quality, strong brand quality, strong distribution network. 2. Weaknesses: Difficulty gaining market share in some European countries, Harley Davidson motorcycles are more expensive...
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...HARLEY-DAVIDSON Marketing Plan Prepared by Mehmet Okan Dicle Cem Karahasanoğlu Submitted to Asst. Prof. Zehra Bozbay Submission Date 26.12.2012 Brief History of Harley-Davidson 1903 in Milwaukee. Bill Harley and Arthur Walter Davidson designed and developed a one-cylinder motorcycle. Around the turn of the century the gasoline engine was developed and the one-cylinder motor was introduced. In 1901 the Indians were the first motorcycles and in 1903 Mitschell, Merkel and Yale. This motorcycle was initially built for racing and was powered by a one-cylinder gasoline combustion engine.So their one-cylinder motorcycle was complete; it was reliable and beautiful in looks. In 1905, 11 cycles in total had been made. 154 by 1908.. by this time they had an official company, in a small wooden barn which was Davidson's father's. Although the company was small, it grew quickly, pulling in William; another member of the Davidson family to help. Pretty soon they had over 20 employees working for them. They even upgraded to a purpose-built stone factory. In 1909, Bill Harley started on the first 1000cc V-Twin. Producing a modest 7 horsepower; the 45-degree V-Twin would become one of the most iconic symbols of Harley-Davidson motorcycles. The V-Twin stayed with Harley for a long time, and although its one of the most recognizable images of Harley-Davidson motorcycles; it wasn't actually invented by Bill Harley.. he was just following everyone else, at the time, V-Twin motors...
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...One shall use the framework proposed by Verville, Palanisamy, Bernadas and Halingten (2007). This framework emphasise the importance of planning the ERP acquisition, as it presents the opportunity for the researchers and practitioners to examine all the implications and dimensions (benefits, cost, risks, challenges etc.) Table 2 of this paper specific the different stages that the project team must go through in order to select the correct ERP software to best fit their business. Acquisition team formation: Berryman endorsed Cotteleer and Davidson to handpick influential people from across the PPG (Produce Products Group). The new the existing processes, they were tough customers and if ERP could be sold to these leaders then it would be easier to roll out across the whole company. They were joined by the Process Innovation group in 1998 and Braunschweig sought for a map of the procurement process and the stakeholders to be identified. It had a defined reporting strategy for the project team (Exhibit 4). Definition of requirements: They meet three to four days a month and by mapping the processes they identified man commonalities across the P&A, MRO and OE purchasing units. They conducted surveys to find out what purchasing did on a day to day basis and the other survey targeted key stakeholders who interacted with purchasing. The surveys highlighted the need for ERP when it was established the 85% of time was spent on non-strategic activities. By May 1998 they had mapped...
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