Assignment 1: LASA 2 Strategic Plan and Self-Reflection Summary
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fallsc.m1.a1.pptxHarley-Davidson Today
Chatae M Falls
Argosy University
April 3, 2015
In response to harsh financial conditions, Harley Davidson had to focus and make tough decisions. The team had two priorities: to establish a strategy that would not only hold in the interim but also for the future and to run the business effectively and address the current challenges.
Discipline, focus and determination and were the only way to deliver our promise to customers and achieve the company objectives set by the strategy. The deep recession of 2009 caused us to decrease the motorcycle shipments to our dealers by about twenty seven percent compared to the previous year. This meant our priority focus had to be on demand driven production.
One of the challenges faced was decreased consumer spending. Harley Davidson financial services were born to give motorcycle loans to our customers. This was a strategic move meant to increase our sales. in the end we increased our market share .
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Harley-Davidson Today: A Brief Overview of the Business
Keith E. Wendell the President and Chief Executive Officer of Harley-Davidson is passionate about the brand .
2009 was a year that saw the worst economic downturn in a decade
In response to harsh financial conditions, Harley Davidson had to focus and make tough decisions. The team had two priorities: to establish a strategy that would not only hold in the interim but also for the future and to run the business effectively and address the current challenges (Holmstrom, 2011).
Discipline, focus and determination and were the only way to deliver our promise to customers and achieve the company objectives set by the strategy. The deep recession of 2009 caused us to decrease the motorcycle shipments to our dealers by about twenty seven percent compared to the previous year. This meant our priority focus had to be on demand driven production (Holmstrom, 2011).
One of the challenges faced was decreased consumer spending. Harley Davidson financial services were born to give motorcycle loans to our customers. This was a strategic move meant to increase our sales. In the end we increased our market share .
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Organizational Structure And Management Team
The organizational structure of Harley Davidson comprises of a thirteen member team of board of directors with the Keith Wendell at the helm.
The management team of Harley Davidson has Keith E. Wendell as the president and chief executive officer .
Keith E. Wendell also serves as the chairman of the board of directors
Matthew S. Levatich is the president and chef operating officer of the Harley Davidson motor company
Joanne M. Bischmann is the vice president of communication while Tont M. Callaway is the vice president of human resources.
Lawrence G. Hund is the president and chef operating officer of Harley Davidson financial services inc. Paul J. Jones is the vice president, general counsel and secretary.
John A. Olin is a senior vice president and the chief financial officer.
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Business Units, Products And Services Offered
A Harley-Davidson® motorcycle is the vision of the rider’s life and lifestyle.
The motorcycles inspire emotions thus customization of the motorcycle to the customers vision works as a strategic approach.
This way the company can cater to longtime customers, young customers and new customers. Thus products have to appeal to all generations or cultures. New Forty-Eight, ™ bikes and the Iron 883™ bikes are dark custom bikes that attract young riders. Our long time customers have Custom Vehicle Operations™, the Electra Glide® Ultra Limited and Tri Glide™ motorcycles. These motorcycles offer a premium experience while offering ways to end any ride . They also have trade up options. The ride always comes first. To truly customize the riding to the customers liking MotorClothes® riding gear offers outfits that let the individual express themselves (Peterseni, 2011).
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Key Corporate Goals And Objectives
The future of Harley Davidson is based on the following pillars: sustainability, growth, leadership and management development and continuous improvement.
The strategy calls for focus on brand value, enhanced productivity and profitability
To drive growth in the US and globally, the company will attract new customers from new demographics as well as maintain commitments to core customers. This can be done only through unique experiences and products associated with the brand. To reach different generations and cultures products have to appeal to each of the customers. Iron 883, a Dark Custom product, appeals to young riders because of the stripped-down, rebellious attitude it exudes. Continued manufacture of core customer favorites such as Street Glide, Tri Glide and Electra Glide Ultra Limited will increase sales in core customers (Holmstrom, 2011; Peterseni, 2012).
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Total Revenues In 2009 And Net Profit In 2009
In 2009, net profit from Harley-Davidson’s motorcycles decreased to 4.29 billion dollars .
This was a 23.1 percent decrease compared to the previous year.
There was an 89.7 percent decrease in income from operations to $70.6 million
The financial challenge caused a restructuring of production and the costs incurred which had an effect on the 2009 performance. The results reflect the loss in operations at HDFS and the loss of revenues from motorcycle sales. Due to the decisions to reduce shipment to dealers by 26.2 percent, revenue from sales of motorcycles decreased to 3.17 billion dollars. This was a percentage decrease of 25.2 compared to 2008. Genuine parts and accessories brought in sales revenue of 767.3 million dollars and declined by 10.7 percent from 2008. A decline of 10.1 percent was experienced in General merchandise revenue which was at 282.2 million dollar in 2009 (Gingerelli, 2014).
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References
Gingerelli, D. (2014). Art of the Harley-Davidson Motorcycle - Deluxe Edition. New York: Motorbooks
Holmstrom, D. (2011). The Harley-Davidson Motor Co. Archive Collection. New York: Motorbooks
Peterseni, D. (2011). Donny's Unauthorized Technical Guide to Harley-Davidson, 1936 to Present: Volume I: The Twin CAM. Boston: Universe
Peterseni, D. (2012). Donny's Unauthorized Technical Guide to Harley Davidson 1936-2008. Boston: Universe
