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Analysis of Strategic Factors

Essay by   •  February 20, 2012  •  Case Study  •  453 Words (2 Pages)  •  1,851 Views

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V. Analysis of Strategic Factors

B. Review of Current Mission and Objectives

The current mission statement for Harley- Davidson Motorcycle is very appropriate. This is the current mission statement for Harley- Davidson: We fulfill dreams through the experience of motorcycling by providing to motorcyclists and to the general public an expanding line of motorcycles, branded products and services in selected market segments. The objectives of the Harley- Davidson are very clear and precise. The objectives can be viewed as a work in progress and accomplishments that has already been completed. The objectives were promptly outlined and given appropriate time for completion.

VI. Strategic Alternatives and Recommended Strategy

A. Strategic Alternatives

Harley- Davidson acquired Buell Motorcycle that was in the related industry this was an example of concentric diversification. There were both pro's and con's in making this decision. The pro's for the company was Buell motorcycle products emphasized innovative design, responsive handling, and overall performance. The con's to this strategic decision was that the heavyweight motorcycle was compromised of four basic segments; standard, which meant simplicity and cost, performance, touring and custom.

Pause Strategy

Harley Davidson Motorcycle discontinued the operations of the Transportation vehicles segment and concentrated on the financial and Human Resources on core motorcycle business. The company illustrated a strong pro producing the company an aggregate sales of $100,000 million in cash and $ 5 million in notes and preferred stock. The operations of the Buell Motorcycle is the con, in the light that it just did not follow the tradition of the company's all American roots. Harley- Davidson designed its manufacturing process to increase capacity, improve products quality, reduce cost and increase it's flexibility to the market changes.

Retrenchment

Harley- Davidson needs to find cost efficient ways for research and development. Research and development expenses were $185.5 million, $177.7 million, and $178.5 million in 2007, 2006, and 2005. The company found ways of regenerating the company's revenue, Harley-Davidson purchased all of its raw materials, steel, aluminum, certain motorcycle components reducing the cost of these activities being outsourced this would be considered a pro. Harley-Davidson motorcycle's custom portion of the product line represents the highest unit and continues to sale at its premium price.

B. Recommended Strategy

Harley- Davidson has done a tremendous job at establishing and reinforcing long-term relationships

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