Synergy

Synergy is an often-used word in business, but as the popular press and the textbook suggest, many efforts at diversification do not provide value to customers or shareholders.

Based on your analysis of Harley-Davidson to date and its merger, describe how it has done or could do the following:

• Find economies of scope. Provide examples of specific actions Harley-Davidson's managers could take to reduce expenses or share activities through horizontal relationships across brands.

• Find ways to achieve economies of scope by leveraging assets and capabilities across business units.

• Find ways to enhance market power by pooling and negotiating or vertical integration.