M2A1 Discussion
gouchogurl2007
M2A1PeerDiscussion.docxPeer 1
M2A1-SCA
Robert Barr posted Jul 27, 2018 5:44 PM
As we have already learned and now, considering, an educated understanding, that with the development of large corporations, such as Harley Davidsons, Inc. and their quest to be sustainable in the competitive market, they must first come to answer the question, does Harley-Davidson have in place, strategic management system, that assist or allows the company to have a sustainable competitive advantage in motorcycle industry today? There is an level of concern, although slight, with analysis of their strategic goals, including a vision and mission, that involves both internal and external environments.
Next, is there leadership that makes the proper decisions necessary for the growth and well being of the corporation? The more you engage with customers the clearer things become and the easier it is to determine what you should be doing. (John Russell, President, Harley Davidson) Leaders such as John Russell, have shown their ability, utilizing both internal and external approaches to the positive movement of the company. The organization does and are involved in being a market leader in America and is moving in a positive level internationally. And, with what we know, does Harley-Davidson, move towards committed action, about decisions that are made or need to be made, to be sustainable? And, is there strategy in place, to take on the competition, that looms in the shadow of the most recognizable motorcycle in the world? Well, more yes, than no. There are sustainable advantages, Harley-Davidson have proven in the past in their core beliefs, that consist of, a major brand image and the loyalty that goes with it, customization of product, wide distribution network, a skillful workforce, efficient engine technology, and the promoting of a special lifestyle through HOG.
The down side or threat, of the competitive advantage, is that it is decreasing, there is proof that the trend of Harley-Davidson, the heavyweight, is going down. There are a few up and coming, competitive, motorcycle manufactures on the rise, Honda and Indian, have shown significant strides in the sale of 2 wheel transportation. Understandably, operational effectiveness, cannot sustain the competitive advantage alone, especially, with Harley-Davidson. The sound of the Harley-Davidson motorcycle, the look, the tenure the company has in the market place, and the way the motorcycle commands the road and everything that comes with it, to be king. is undeniable, but is it enough, they must continue to steer away from what has lead them to the mutually destructive price competition, and positively lean into the difficult-to-imitate activity they have been about, for well over a century, now. Harley-Davidson, has minimal sustainable competitive advantage, and they must evolve and adapt as they move towards the future in the motorcycle business.
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Peer 2
Wheeler, Jann M2_A1
Janice Wheeler posted Jul 28, 2018 7:00 PM
Item 6. Selected Financial Data
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(In thousands, except per share amounts) |
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2017 |
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2016 |
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2015 |
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2014 |
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2013 |
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Statement of income data: |
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Revenue: |
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Motorcycles & Related Products |
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$ |
4,915,027 |
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$ |
5,271,376 |
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$ |
5,308,744 |
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$ |
5,567,681 |
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$ |
5,258,290 |
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Financial Services |
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732,197 |
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725,082 |
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686,658 |
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660,827 |
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641,582 |
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Total revenue |
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$ |
5,647,224 |
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$ |
5,996,458 |
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$ |
5,995,402 |
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$ |
6,228,508 |
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$ |
5,899,872 |
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Net income |
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$ |
521,759 |
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$ |
692,164 |
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$ |
752,207 |
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$ |
844,611 |
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$ |
733,993 |
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Weighted-average common shares: |
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Basic |
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171,995 |
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179,676 |
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202,681 |
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216,305 |
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222,475 |
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Diluted |
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172,932 |
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180,535 |
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203,686 |
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217,706 |
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224,071 |
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Earnings per common share: |
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Basic |
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$ |
3.03 |
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$ |
3.85 |
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$ |
3.71 |
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$ |
3.90 |
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$ |
3.30 |
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Diluted |
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$ |
3.02 |
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$ |
3.83 |
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$ |
3.69 |
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$ |
3.88 |
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$ |
3.28 |
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Dividends paid per common share |
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$ |
1.46 |
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$ |
1.40 |
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$ |
1.24 |
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$ |
1.10 |
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$ |
0.84 |
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Balance sheet data: |
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Total assets(a) |
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$ |
9,972,672 |
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$ |
9,890,240 |
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$ |
9,972,977 |
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$ |
9,515,870 |
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$ |
9,394,765 |
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Total debt(a) |
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$ |
6,988,009 |
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$ |
6,807,567 |
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$ |
6,872,198 |
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$ |
5,492,402 |
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$ |
5,248,895 |
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Total equity |
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$ |
1,844,277 |
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$ |
1,920,158 |
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$ |
1,839,654 |
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$ |
2,909,286 |
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$ |
3,009,486 |
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Next USS&EC showed the areas of which H-D is Competitive.
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*Cruiser (emphasizes styling and owner customization); |
According to USS&EC, “The Company emphasizes remarkable styling, customization, innovation, sound, quality, and reliability in its products and generally offers a two-year warranty for its motorcycles. The Company considers the availability of a line of motorcycle parts and accessories and general merchandise, the availability of financing through HDFS and its global network of premium dealers to be competitive advantages.”
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Motorcycles |
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77.8 |
% |
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78.2 |
% |
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77.8 |
% |
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Parts & Accessories |
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16.4 |
% |
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16.0 |
% |
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16.2 |
% |
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General Merchandise |
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5.3 |
% |
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5.4 |
% |
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5.5 |
% |
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Other |
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0.5 |
% |
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0.4 |
% |
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0.5 |
% |
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100.0 |
% |
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100.0 |
% |
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100.0 |
% |
The general environment segments include:
· Demographics: U.S., India, Brazil, and Australia, China, Canada, Mexico
· Sociocultural trends: A total 1,498 Dealerships located in the U.S., Canada, Latin America, EMEA, Asia Pacific
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Values: “Their values are based/dependent on the involvement of management, production employees and suppliers. To execute this strategy, the Company must be successful in its continuous improvement efforts which are dependent on the involvement of management, production employees and suppliers. Any inability to achieve these objectives could adversely impact the profitability of the Company’s products and its ability to deliver the right product at the right time to the customer.” |
· Change: “Changes in general economic and business conditions, tightening of credit and retail markets, political events or other factors may adversely impact dealers’ retail sales.”
· Legal, political, or regulatory: Having this President can adversely affect sales. A lot of changes have been made, changes that have been over-turned by this administration, all effect the business, and the decisions that are made. Leaving business with little control over the outcomes that affect thee business.
· Technological advancements: Didn’t find out a lot in this area. (So, I will leave it open to Discussion)
· Economic metrics: “General economic conditions over which motorcycle manufacturers have little control, have a huge impact on business. These factors can weaken the retail environment and lead to weaker demand for discretionary purchases such as motorcycles. Tightening of credit can limit the availability of funds from financial institutions and other lenders and sources of capital which could adversely affect the ability of retail consumers to obtain loans for the purchase of motorcycles.”
· Cycles: The manufacturing strategy from time to time, requires them to open, close, expand, contract or restructure one or more of its manufacturing facilities.
· Business conditions: “Many of the Company’s competitors are more diversified than the Company, and they may compete in all segments of the motorcycle market, other powersports markets and/or the automotive market.”
· Globalization of markets and services: USS&EC shared this, the Company must increase its presence outside the U.S., including additional employees and investment in business infrastructure and operations. International operations and sales are subject to various risks, including political and economic instability, local labor market conditions, the imposition of foreign tariffs and other trade barriers, the impact of foreign government laws and regulations and U.S. laws and regulations that apply to international operations, and the effects of income and withholding taxes, governmental expropriation and differences in business practices. The Company may incur increased costs and experience delays or disruptions in product deliveries and payments in connection with international operations and sales that could cause loss of revenues and earnings. Unfavorable changes in the political, regulatory and business climate could have a material adverse effect on the Company’s net sales, financial condition, profitability or cash flows. Business practices that may be accepted in other countries can violate U.S. or other laws that apply to the Company. Violations of laws that apply to the Company's foreign operations, such as the U.S. Foreign Corrupt Practices Act, could result in severe criminal or civil sanctions, could disrupt the Company's business and result in an adverse effect on the Company's reputation, business and results of operations.”
*I also attached a SWOT Analysis
References
U.S. Securities and Exchange Commission , Form 10-K, Retrieved from https://www.sec.gov/Archives/edgar/data/793952/000079395218000012/hog12-31x201710xk.htm#s5874BF9EA13C18AFBDA1B63070AD1E8F
