Harley Davidson

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  • Topic: Strategic management, Corporation, Marketing
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  • Published : October 13, 2011
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Case 16 – Harley Davidson
Strategic Audit of a Corporation

III. External Environment: Opportunities and Threats (SWOT)
Natural Physical Environment: Sustainability Issues
1. What forces from the natural physical environmental are currently affecting the corporation and the industries in which it competes? Which present current or future threats? Opportunities? a. Climate, including global temperature, sea level, and fresh water availability b. Weather related events, such as severe storms, floods, and droughts c. Solar phenomena, such as sun spots and solar wind

2. Do these forces have different effects in other regions of the world? No, weather will always be a factor to some degree no matter what part of the world you are in. Societal Environment
1. What general environmental forces are currently affecting both the corporation and the industries in which it competes? Which present current or future threats? Opportunities? a. Economic – current state of the economy has a huge impact on how people spend, which in turn affects business for Harley as well as the companies they compete with. When spending is down, sales will also have a slight downturn. b. Technological – With new technology being invented daily, the company can offer new and more innovative products to consumers. c. Political-legal

d. Sociocultural
2. Are these forces different in other regions of the world? Task Environment
1. What forces drive industry competition? All of the areas listed below drive industry competition. Are these forces the same globally or do they vary from country to country? I think the forces would be the same globally. Rate each force as high, medium, or low. a. Threat of new entrants – Medium

b. Bargaining power of buyers - High
c. Threat of substitute products or services - Medium
d. Bargaining power of suppliers - Medium
e. Rivalry among competing firms - High
f. Relative power of unions, governments, special interest groups, etc. - Low 2. What key factors in the immediate environment (that is, customers, competitors, suppliers, creditors, labor unions, governments, trade associations, interest groups, local communities, and shareholders) are currently affecting the corporation? Which are current or future? Threats? Opportunities? Summary of the External Factors – EFAS Table

Table 4-5| |
External Factors| Weight| Rating| Weighted Score| Comments| 1| 2| 3| 4| 5|
Opportunities| | | | |
The international heavy weight market is growing and is now larger than the U. S. heavyweight market develop environmental friendly products| 0150| 2| 0.300| Protection of environment| The European demand for Harley Davidson is the highest in the international market and represents the single largest motorcycle market in the world| 0150| 2| 0.300| | Interest rates are at historical lows.| 0.100| 2| 0.200| | Women and younger riders are increasing becoming interested in bikes| 0.100| 4| 0.400| | Alliances with Ford Motor Company or other automobile manufacturers are possible.| 0.025| 1| 0.025| | Industry registrations of domestic heavyweight motorcycles are increasing.| 0.050| 3| 0.150| | Market share increasing in Europe and Asia for the last two years.| 0.025| 3| 0.075| | Increasing demand in US markets for bikes.| 0.025| 4| 0.100| | Customers value quality parts| | | | |

Threats| | | | |
Harley’s ongoing capacity restraints caused a shortage supply and a loss in domestic market share in recent years.| 0.100| 2| 0.200| | .Harley’s average buying age is 42 years old and increasing| 0.050| 2| 0.100| | The European Union’s motorcycles noise standards are more stringent than those of Environmental Protection Agencies in the U.S and increased environmental stand.| 0.050| 2| 0.100| | Some competitors of Harley Davidson have larger financial and marketing resources and...
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