...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...
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...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...
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...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...
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...opportunities, and threats. What are Harley-Davidson’s SWOT, specifically the opportunities and threats external to the organization and under consideration of the fact that they are looking to expand overseas? First we must define SWOT. The purpose of the SWOT analysis is to analyze the company from four key strategic areas to better determine what changes they should make. SWOT first looks at the strengths and weaknesses of the organization; these are internal factors to the company. This is to help the company get a firm grasp on its core market advantages and areas that competitors may criticize the company for. Companies typically make core strengths their focal point for marketing. The purpose of identifying and defining the organizations weaknesses is not only to bring them to light, but to understand them so that they can decide what areas to improve and what areas are inherent in their business. Opportunities and threats are factors external to the organization. Identifying opportunities will hopefully point out untapped opportunities organizational leaders should consider capitalizing on. Threats identify external factors like changes in government regulations, costs, environmental standards or any other condition change that can affect the company external to the company itself. The threats to Harley-Davidson are considerable. For starters when the Michigan State Police proved that BMW heavyweight motorcycles outperformed the Harley-Davidson’s it sent a shockwave...
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...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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...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 | ...
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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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...1 a) How did Harley dominate the US industry historically Historically, Harley-Davidson managed to dominate the US market by correctly identifying its strengths, weaknesses, opportunities and threats and understanding the environmental factors that influenced the industry that it operates in (Figure 1 and Figure 2). By utilising its strengths to maximise the opportunities presented to the company, Harley-Davidson was able to implement a succession of affective strategies, allowing it to capture 60% of the motorcycle market and subsequently became the market leader in the late 1950s. In the early years, the company attracted customers and established brand credibility by utilising the ‘victorious’ and ‘sporting’ brand image of one of its founders, Walter Davidson. The company understood its customers need for a product that can be fixed at home and therefore, was able to fulfil this need with its pioneered V-twin engine innovation. In addition, Harley-Davidson invested in R&D, focusing on improving the quality and reliability of its machines, building on its strengths and therefore was able to charge a premium for its motorbikes. This, in turn assists Harley-Davidson to acquire its prestigious, luxury brand image and achieved a cult following. In doing so, Harley Davidson was able to increase its market share, despite a sagging economic environment of the 1920s. When sales declined in the 1950s, the company relied on its innovations as a point of differentiation and built...
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...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...
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...Harley-Davidson Case Analysis MGMT 4290 Professor McGowan Keiven Cosgriff I. CORE PROBLEM Harley-Davidson has a strategy problem; the company’s core problem is its need to reexamine and alter its strategy to ensure continued success in the changing global environment. Harley-Davidson has a solid foundation and the potential for continued success and industry leading performance, however, times are changing and Harley must adapt. II. S.W.O.T. ANALYSIS Strengths Harley-Davidson is a strong company with several core strengths. First, Harley has unprecedented brand recognition and customer loyalty. For example, in 2004 42% of new Harley-Davidson purchasers owned a Harley previously. Richard Teerlink, retired Harley CEO stated, “There are very few products that are so exciting that people are willing to tattoo your logo on their body.”[1] Moreover, Harley-Davidson’s guiding concept is that its brand is more than a brand; it is an iconic image with an accompanying lifestyle and culture. Second, Harley differentiates itself from the Japanese by offering support to various enthusiasts and social groups. For example, the Harley-Davidson Owners Group (HOG), which has worldwide membership in excess of 900,000, helps cultivate a hard-core loyal customer base. Essentially, by owning a Harley you become a member of a special community of people who all share an interest in one product. Third, Harley derives strength from its strong market position, in 2004, Harley controlled...
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...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...
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...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) ...
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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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...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 ...
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...HARLEY-DAVIDSON STRATEGIC PLAN Submitted by Stacey Wagner Prepared for Professor Don Looney Business Policies and Strategies Spring 2007 TABLE OF CONTENTS VISION STATEMENT .................................................................................................... 3 MISSION STATEMENT ................................................................................................. 3 EXTERNAL ASSESSMENT ........................................................................................... 3 External Audit ................................................................................................................. 3 Porter’s Five Forces Analysis ......................................................................................... 7 External Factor Matrix .................................................................................................... 8 Table 1 ................................................................................................................ 8 Competitive Profile Matrix ............................................................................................. 9 Table 2 ................................................................................................................ 9 INTERNAL ASSESSMENT .......................................................................................... 10 Key Internal Forces ........................................................................................................
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