Assignment 1: LASA 2 Strategic Plan and Self-Reflection Summary
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CallahanH_M3_A2.pptxHarley-Davidson Feasibility Study
Hakim Callahan
Argosy University
brands
Harleys Davidson is a company that manufacture and supplies different brand of motorbikes.
There are five brands that are made by the company
V-Rod – softail – sportster – touring and dyna
The five brands has help the firm reach different markets because of their different abilities.
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Brand analysis
Touring model
is a product which is unstable at high speed.
Uses a big twin engine
Offer full faring with radios.
Softail
-Has a softail chassis and big twin engine.
Dyna has a twin headlamp that distinguishes it from the rest.
Sportster
Rubber mounted engine
Heavy machine with reduce lean angle
Smooth ride for passengers
V-Rod
Produced for racing
Moves at a speed of a quarter mile per less than ten seconds.
Market target
Touring model, softail and dyna were made with the market targeting those who take a ride for pleasure without haste since it moves at a lower speed.
Sportster targets ridders who travel long distances like the tourists. It is comfortable since its engine is regulated to reduce the sound.
V-Rod was meant for those who travel at fast speed. It is commonly used by the police who react to emergencies. Apart from the police the sport motorcycle ridders also use it because of its fast speed.
Gaps
In the market the ridders are increasing thus creating the opportunity for the brands to be produced.
The increase in the prices of the vehicle make some people opt to buy a motorcycle since it is relatively cheap.
Merger
The firm could possible merge with its major supplier so as to reduce the cost of production increase its production and make more sales.
Swot analysis
Marketing
The firm has managed to develop new brand of touring motorbike which has managed to compete fairly with brands from other firms.
HD company uses integrated marketing strategy to reach out to her customers.
The firm uses different forms of media to reach to the customers. The media used are social media, televisions, exhibitions and print media.
The company offers after sales service and free training to the new customers as a way of buying their loyalty.
Operations
The product of the firm are of high quality thus attracting more customers.
The quality of the bikes has been on the rise because of the advanced technology which is executed by the company.
Swot analysis
Human resource.
Hiring of employees is purely on merit thus giving the firm a guarantee of quality service.
The recruits are taken through vigorous training to orientate them to the expectations of the firm.
All the employs sign a performance contact which is assessed quarterly to help in improving the quality of work by the workers.
The transparency in hiring of the employees has helped the firm to avoid law suits by candidates who fail to be recruited.
The firm uphold ethics in all its activities in the company.
Executive leadership
Most of the leaders in the firm have climbed the ladder from junior workers thus have over 20 years of experience within the firm and the industry.
The vision of the firm is to make its products affordable to the customers by 2030.
The management are closely working with the suppliers to find ways of getting the suppliers at a cheaper cost.
Hiring of employees is based on merit and experience so that the firm can get the best workers who can help it achieve its objectives. The retention of the employees in their responsibilities is also subject to their performance and not age or duration for which one has served the firm.
The success of the firm has been possible because of the experience of its leadership which has been in place for the last twenty years. The firm intends to find ways of lowering the prices of the products through the reduction of cost production to boost the sale of its products.
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Swot analysis cont
Supply chain optimization
The firm has managed to bring many distributors on board to help in reaching to all the customers all over the world.
The firm also have many depots that it uses to supply its products in addition to the individual wholesalers who buy directly from the firm.
The firm has however not reached to every customer because of the high cost of reaching to all corners of the globe.
Corporate Responsibility and Ethics.
The firm has in many occasions participated in the environmental activities like clean ups and tree planting sessions.
The firm has initiated several programs that benefit the community like sponsoring bright students and giving attachment vacancies.
The firm has a weakness in the waste disposal since most of its waste products are metallic and are harmful to the citizens.
The company has also failed to compensate the people around the firm for noise pollution from the plant.
Safety and quality.
The firm gives a free training to the new customers to guarantee their safety.
The head gears provided by the firm is to ensure that all the ridders are safe when travelling
The firm complies with safety and standards regulation to ensure that its products meet the required standards set for the industry.
Corporate ethics reflects the philosophy of the firm. The intention of the firm must be met so that it looks to meet the business ethics required. For the case of Davidson the purpose is to make a maximum return to the stakeholders and if the firm reduced the sacrifices the firm then it will be a violation of the agreement thus unethical business activity. The firm also has a role to play in the corporate social responsibility, and this can be done by making the community enjoy the business profits indirectly
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Competitive advantages
Harley Davidson is in the right business based on the experience and duration it has taken in the industry.
The firm can venture into the production of electronics which are sellable and their demands are high.
The industry of mobile phone production is lucrative and its market space keeps on widening as population increases.
The software industry is another area that has room for expansion because of the new inventions and discoveries that are still going on.
In addition to that, training of the ridders is an area within the industry which is not yes exhausted since most firms sell but do not train the ridders.
The firm should consider manufacturing low density products to meet the needs of the low income earners
The last area that gives an opportunity to the firm is the motor industry since they have the idea that they make good use of.
The firm is also working with the distributors to ensure that the products reach the owner at the right time when it is needed to increase customer trust with the company. The firm has also embraced the new technology that has reduced the workload and production cost this was done with the aim of reducing the wage bill and production thus reducing the price burden on the customers (David, 2015).
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Growth and profitability strategies
Manufacture of low density motorcycles.
Forming a merger with the leading supplier of the raw materials to have an upper hand in getting the products and cutting down the production costs.
Creating of more firms so as to reduce the cost of transport of the finished products.
The firm can go full automation such that the products can be bought online and the customers get their products in the nearest depot.
Diversifying production into other industries such as software to boost the revenue from the sales.
Creating a distribution channels per region to reduce the cost for the wholesalers who have to travel to the firms to get the products.
For the firm to realize some growth and increase in profits it must look for other avenues to achieve that. The company can join up with the suppliers so that the work as a team to reduce the cost of production. The merger will also see the two firms creating a market for each other thus increasing the profit earned.
The firm also need to automate its system to reduce the duration that the customers take in ordering the products from the company. In addition to its current products the firm can venture into new field like software industry to use its ability in research.
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Manufacture of low density motorcycles
The firm will spend a low cost in the manufacture of such products.
It does not require high level of technology like the high density brand.
The selling price will be lower thus many customers will buy it.
The increased sale will lead to increased revenue thus the firm will get the funds required for expansion and to venture into new fields.
The product has the ability to compete favorably with rivals products because of its price compared to the current prices of the high density products.
The product will help to sell the name of the firm since it will be bought by many people across the globe.
The aim of the strategy was to create an alternative products which could rival the competitors in the industry for the available market. Due to the economic hardship people tend to go for cheaper products which they can easily afford.
The low density also cost less for production thus the firm will be able to save some money to invest in the advertisement of the company’s products.
The amount saved could also be used to subsidize the prices of the high density products with the aim of increasing its sales.
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The new product strategy
The manufacture of the new product shall be anchored on the technology that is currently used to manufacture the high density
The new product will help in the selling of the name of the firm thus popularizing the products from the company.
The revenue generated from the sale of the low density products can be use to subsidize the high density thus boosting their sales as well.
The aim of the strategy was to create an alternative products which could rival the competitors in the industry for the available market. Due to the economic hardship people tend to go for cheaper products which they can easily afford.
The low density also cost less for production thus the firm will be able to save some money to invest in the advertisement of the company’s products.
The amount saved could also be used to subsidize the prices of the high density products with the aim of increasing its sales.
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References
David, F. (2015). Strategic management. Upper Saddle River, N.J.: Pearson Prentice Hall.
Harley‐Davidson Inc. (2008). Mergent's Dividend Achievers, 5(3), 125-125. http://dx.doi.org/10.1002/div.7387
Fehan, D. (2016). Design of racing and high-performance engines 2004-2013. [S.l.: s.n.].
Van Deusen, C., Williamson Steven A., & Babson, H. (2017). Business policy and strategy. Boca Raton, FL: Auerbach Publications.
