Harley davidson case study essay

Harley Davidson Case Analysis Essay While the free essays can give you inspiration for writing, they cannot be used 'as is' because they will not meet your assignment's requirements.

Harley Davidson Case Study Essay - Words | Cram

Production started with three motorcycles in and increased to 8 in In , Harley-Davidson, Incorporated became a publicly held company. The new management installed a just-in-time inventory system to reduce inventories and improve total quality. With a new quality focus Harley-Davidson began to invest heavily in research and development.

In one year the new Harley-Davidson management reduced the break-even point by 18, motorcycles. Management's focus on efficiency in production and improvements in quality resulted in increased demand and a production capacity of , motorcycles in Harley-Davidson operates in two segments Motorcycles and Related Products, and Transportation and vehicles segment.

Harley Davidson Case Study

Net sales increased in both the Motorcycles segment and the Transportation Vehicles segment. Demand for motorcycles is continuing to increase at a rate faster than supply for most of the markets in which Harley-Davidson competes. Parts and Accessories market should grow at a rate similar to the annual growth in motorcycle market.

From its beginning in a shed at turn of the century, Harley-Davidson has survived the Great Depression, two world wars and a manufacturing revolution to become a company with products so valued and sought after that they are a way of life for many owners Wheelen. Organization s Vision, Mission, and Objectives The Harley-Davidson's vision is as follows: "Harley-Davidson, Incorporated, is an action-oriented, international company-a leader in its commitment to continuously improve the quality of profitable relationships with stakeholders customers, dealers, employees, suppliers, shareholders, government, and society.

Harley-Davidson believes the key to success is to balance stakeholders' interests through the empowerment of all employees to focus on value-added activities. The mission statement shows that the focus of the organization is on customer satisfaction and growth. Harley-Davidson's statement of company philosophy contains a separate list of the values of the organization. Richard Teerlink age 59 joined Harley-Davidson in and was elected to the board of directors in Teerlink has been the leader in developing a value-based culture at Harley.

His focus is on the importance of establishing mutually beneficial relationships with all of stakeholders has served the company well in the past. Teeklink believes that top management is responsible for creating an operating environment that can allow continual learning Harley Davidson Home Page. Unlike the traditional executive leader who is focused on structure and strategy, Teerlink thinks about the operating environment in less tangible ways. Teeklink has a quality focus and has initiated a just in time inventory system along with a value-added approach to manufacturing Wheelen.

In addition to the focus on a quality product, Teeklink is also focused on growth and corporate governance, which is reflected in the company s vision. In a speech at Yale University Teerlink said that, "the Motor Company expects its market share to be bolstered by increased production in the next few years. Teerlink stated the company expects to produce , units annually by the year , compared to about , in Teerlink added in his speech, "We have not found any reduction in the demand for Harley-Davidson,". He said the Milwaukee firm had close to 50 percent of the cc-and-above U.

Teerlink also said that almost 30 percent of the company's motorcycles are traditionally sold outside the United States. It's our intention to be very successful in all markets," Teerlink added. Because we're capacity-constrained, we've been losing some market share, but we're not losing market share because people don't want to buy our product. He said Harley-Davidson had no immediate plans to diversify beyond its traditional strength in large-displacement motorcycles.

Phillips Week1 IB610 Assignment 1 Harley Case Study Essay

Teerlink also noted that women now make up about eight percent of new Harley-Davidson buyers, as opposed to only two percent in the past Online Magazine. Philosophical Values of Richard F. Current technology would be important to him, because of his need for efficiency and quality. This CEO is concerned with treating dealers, suppliers, and employees with integrity.

In addition, he has a middle of the road philosophy regarding government, religion, and the legal system. The funding for these expenditures will be with internally generated funds. Financing with internally generated funds is indicative of the conservative economic values of Mr.

He would value profitability, but would emphasize customer satisfaction and the quality of the product. Internal Environment General Discussion by function Structure scott Culture Harley Davidson s culture fulfills the important functions that are necessary for an organization to survive. The company lives by their worldwide mission, which states: Preserve and perpetuate the Harley-Davidson institution through continuous improvement in the quality of their products and services and achievement of their financial goals. Engage in manufacturing or service ventures that can add value not only profit to the motorcycle business.

In order to fulfill their mission, Harley is constantly searching for ways to do things better.

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They focus on the importance of relationships between management and other employees. By doing so, employees convey a sense of identity, that in turn, helps them generate commitment to the company.

Education programs that take place at Harley-Davidson s learning center help employees to become compatible with the company s culture. The idea of never being satisfied with the company status leads to continuous improvement and keeps the company consistent with its current objectives, strategies, policies and programs. Marketing Brand loyalty for Harley-Davidson is emotional for management and the customers. Harley promotes a mystique appearance, individualism, the feeling of riding free, and the pride of owning a legend. With Harley, you can live out your fantasies, as well as experience camaraderie with fellow bikers the thing from Scott.

Harley-Davidson has been trying to increase brand recognition among the non-riding public and provide a wide range of products by licensing its trademark "Harley-Davidson-Registered Trademark" Wheelen. Harley-Davidson currently has licensed the production and sale of a broad range of items, including clothing, jewelry, small leather goods and numerous other products, and is expanding its licensing activity in the toy category.

Licensing has also been an effective means of enhancing Harley-Davidson's image.


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Harley-Davidson s motorcycles are sold through a network of 1, dealers worldwide. Harley-Davidson's basic channel of domestic distribution consists of approximately independently owned full-service dealerships.

Porter’s five forces

All dealerships carry Harley-Davidson replacement parts, after market accessories, and perform servicing of Harley-Davidson motorcycle products. Marketing efforts are divided among dealer promotions, customer events, magazine, public relations, and cooperative programs with Harley-Davidson dealers Financial Web.

They own 54 percent of the market share in the USA, 16 percent in Japan, 10 percent in Europe, and 38 percent in Australia. The foreign markets could be larger, but the company has an agreement with American dealers not to sell more than 30 percent of the bikes overseas, if the domestic demand is not met. The dealers are considered to be business partners and the headquarters plays an active role in developing programs, financing improvements, implementing support and management consultants.

Harley has developed a very effective marketing strategy, but it is the responsibility of manufacturing to produce high quality and reliable motorcycles. When a person buys a Harley-Davidson motorcycle, they receive a free 1-year membership to the Harley Owners Group HOG , which was developed in as a program to keep people active with their Harley. HOG also keeps the company close to its customers. HOG has , worldwide members, local chapters and is the largest company-sponsored motorcycle enthusiast group. They conduct four US national rallies, two touring rallies and 44 state rallies.

These rallies are the primary promotional tool for Harley-Davidson by improving customer relations and are an excellent way to showcase and demonstrate new products. Harley-Davidson is not able to compete with the foreign competitors in the area of price. Harley-Davidson has developed a strategy of value over price. Harley-Davidson was careful not to exceed demand in production of their motorcycles.

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Harley Davidson Case Study

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