Assignment 1: LASA 2 Strategic Plan and Self-Reflection Summary

Business Policy and Strategic Decisions

Project Scenario: Strategic Planning for Harley Davidson, Inc.

Scenario

The purpose of this exercise is to develop a Strategic Business Plan for Harley Davidson Inc., a publicly traded, employee owned manufacturer of heavyweight motorcycles, recreational and commercial vehicles, military defense items, and small engines, distributing its products to domestic and international markets targeting men and women of all ages.

Harley Davidson, Inc. began in 1903 as the Harley Davidson Motor Company by William Harley and Walter Davidson along with his brother Arthur. The original product of these young mechanics was a three horsepower motorized bicycle which they built in their backyard shed in Milwaukee, Wisconsin. Sales took off almost immediately and in 1907 they began to advertise. In 1909 they introduced the V-twin engine which created the sound synonymous with the Harley Davidson motorcycles.

A history of the Harley Davidson, Inc. and additional informational resources can be found at:

http://www.encyclopedia.com/topic/Motorcycle_industry.aspx

http://users.soe.ucsc.edu/~callon/hd.html

http://www.wikinvest.com/stock/Harley-Davidson_(HOG)

The motorcycle industry consist of the following major manufacturers: in the United States (Harley Davidson), in Japan (Honda, Yamaha, Kawasaki, Suzuki), in Germany (BMW). The industry practice is to sell their products internationally through foreign distributors. They rely on domestic sales through franchise operations. The fast growing markets of India and China pose unique problems and opportunities as Harley struggles to meet these new challenges.

Industry Issues:

Like many industries, the motorcycle industry has faced many challenges over the past years and, as a result, some industry expansion and alliances has occurred intensifying the competition. The impact of these trends and others should be considered in the plan along with how to address these issues and concerns shared by the industry as a whole. Harley’s Board and executive leadership are very concerned about the developments in this industry. They have decided that the Harley Davidson should take a leadership role in the industry by addressing them in a proactive way. Many environmental concerns and other criticisms are also faced by the industry. They want to see that HD continues its leadership role by ensuring that it operates with the highest ethical principles in an increasingly global economy. They are confident that where HD goes, the rest of the industry will follow and for that reason, your strategic planning will be focusing your efforts on HD as you work to develop the plan.

Note to Students:

During the next weeks, you will be working towards a final project that requires you to develop a Strategic Business Plan. The plan will be developed based on activities performed each week.