Strategic Audit of Harley Davidson Inc.

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I. CURRENT SITUATION3
A. CURRENT PERFORMANCE3
B. STRATEGIC POSTURE3
1. Mission & Objectives3
2. Strategies4
3. Policies4
4. Summary4
II. CORPORATE GOVERNANCE4
A. BOARD OF DIRECTORS4
B. TOP MANAGEMENT5
III. EXTERNAL ENVIRONMENT: OPPORTUNITIES AND THREATS (SWOT)6 A. SOCIETAL ENVIRONMENT6
1. Economic6
2. Technological6
3. Political-legal6
4. Sociocultural7
B. TASK ENVIRONMENT7
1. Threat of new entrants7
2. Bargaining power of buyers7
3. Threat of substitute of products or services7
4. Bargaining power of suppliers7
5. Rivalry among competing firms8
6. Relative power of unions, governments, special interest group, etc.8 C. SUMMARY OF EXTERNAL FACTORS8
IV. INTERNAL ENVIRONMENT: STRENGTHS AND WEAKNESS (SWOT)10
A. CORPORATE STRUCTURE10
B. CORPORATE CULTURE10
C. CORPORATE RESOURCES10
1. Marketing10
a. Product:10
b. Price:11
c. Place:11
d. Promotion:11
2. Finance12
3. Research and Development (R & D)13
4. Operations and Logistics13
5. Human Resources Management (HRM)14
6. Information Systems (IS)14
D. SUMMARY OF INTERNAL FACTORS15
VI. ANALYSIS OF STRATEGIC FACTORS16
A.SITUATIONAL ANALYSIS16
B. REVIEW OF MISSION AND OBJECTIVES17
1. Are They Appropriate & How Should They Be Changed?17
2. Damage Control17
VI. STRATEGIC ALTERNATIVES & RECOMMENDED STRATEGY18
A. STRATEGIC ALTERNATIVES18
1. Revision of Objectives18
2. Alternative Strategies18
B.RECOMMENDED STRATEGY18
1. Selected Strategic Alternatives18
VII. IMPLEMENTATION19
A.PROGRAMS19
B.FINANCIALLY FEASIBLE19
VIII. EVALUATION & CONTROL20
A.CURRENT INFORMATION SYSTEM20
B.CONTROL MEASURES20
BIBLIOGRAPHY21

Strategic Audit of Harley Davidson Inc.

I. Current Situation
A. Current Performance

In 2007, GDP ended at 3.1% in America and 2.1% in Eurozone; and is expected to drop further during 2008. According to Jim Ziemer, Chief Executive Officer of Harley-Davidson, Inc., “these are challenging times in the U.S., our international dealer network delivered double digit retail sales growth in the fourth quarter and for the full year of 2007. Our customers around the world have a lot to look forward to this year with the new motorcycles we are bringing to market, the opening of the Harley-Davidson Museum, and hundreds of rides and events leading up to our 105th Anniversary Celebration in Milwaukee this summer.” (PR NewsWire, 2008). With these additions to Harley-Davidson’s current situation, Jim Ziemer is planning to increase sales to make up for lost revenue last year.

Harley-Davidson’s sales decreased from $5.8 billion in 2006 to $5.73 billion in 2007. When measured in sales units, Harley-Davidson’s sales decreased by 34,981 in 2007, bringing overall sales to 337,774 units. In the first quarter of 2008, Harley-Davidson is expecting to ship between 68,000 to 72,000 motorcycles, approximately four thousands units less than the first quarter in 2007. On the other hand, according to the 2007 annual report obtained at Harley-Davidson’s web site, the company has 48% of the North America market share compare to its competitors: Honda 14.3%, Suzuki 14.7%, Yamaha 9.2%, Kawasaki 7.5%, 8.3% for the other motorcycles companies which make up the rest of the market share. The significant amount of market shares Harley-Davidson owns in the North American market helped the company generate the highest net revenues of $4,208 million in 2007.

Beginning 2000, the company has successfully maintained a ROI above 20 every year. In 2007, Harley-Davidson’s return on investment (ROI) resulted in 31.85 percent; which has slightly decreased in the first quarter of 2008 which resulted in 24.29 percent. Although these figures are quite well when compared to the industrial average of 17.31 percent, there is always room for improvement when one considers the progress of Harley-Davidson throughout history.

B. Strategic Posture

1. Mission & Objectives

Harley-Davidson’s...
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