February 19 2013
Case Study 10
1. IF you were CEO of Harley Davidson, How would you compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales?
A.)The advantage of Using Exports was that I’m able to save money in resources, taxes relief’s, and cheaper labor while exposing my product to an international market. Harley recognized that “German motorcyclist rode at high speeds-often more than 100 mph.” Pc-10. As a result the company began studying ways to cater to the German needs and provide more protection. The disadvantage would be the locally the community would loose certain jobs and the country more tax revenue.
B.) The advantage for Joint Ventures that by partnering with a foreign and local partner I immediately share the risk, pool resources, and responsibilities. My risk is less. However the disadvantage is that if I don’t find a partner that shares the interest and goals I can end up loosing company secrets like GM, “Not long ago GM executives noticed that a new car from a fast growing local competitor partially owned by GM’s Chinese joint venture partner, looked very similar to one of its models. Gm Claimed its design was copied.”p.111 Management and Globalization.
C.) The advantage of Foreign Subsidiaries is that you have complete ownership of the company while still enjoying tax reliefs while building in a foreign country. You also don’t have to worry of having your company’s secrets stolen. You also are providing jobs to the local community hence a better acceptance of your product by the locals. The disadvantage is that you take the entire risk
2. In America and Japan Harley’s positioning has shifted from providing a product (motorcycles) toward providing a service (way Of Life). Will this positioning succeed in Asia, Africa, and South America?
I totally believe this...
Please join StudyMode to read the full document