Solved by verified expert:Review the initial scenario and the Strategic Business Plan presented in Module 1 to make sure that the requirements of the Board and the Part II Strategic Plan are met. In order to meet the requirements of the Board, you will prepare the final Strategic Business Plan—Part II—Strategic Plan to the Executive Board. Ensure your strategic plan is thorough, succinct, and complete. Challenge yourself to link the targets to specific initiatives you have identified in the Strategic Plan you are developing for H-D.Your written report should include a title page, table of contents, executive summary, and each of the following sections in an 8- to 12-page report:Part I: Global Economy & Factors Affecting H-D
Identify H-D’s Motivations & Risks
Motivations for Expansion
Risks in Expansion
Explain H-D’s competitive advantage in Global Markets
Determine and explain entry strategies for global expansion
Recommend an Internet approach/strategy for H-D
How the Internet adds value
Internet Business Models
Competitive Strategies
Leverage E-Business Capabilities
Part II: Corporate Leadership Develop the following: Current Direction Setting
Organizational Culture: In addition, evaluate the culture at Harley-Davidson (H-D) and define what attributes you think team members should possess in reaching the business goals set forth by the organization. If you were part of the management team at H-D, what motivational techniques would you implement to make these teams successful?
Organizational Design: As you have been completing the Strategic Business Plan, the management at Harley-Davidson has decided to take a team-oriented approach in various departments rather than the traditional, functional structure. Based on your knowledge of different types of teams and their focus, suggest what kinds of team strategies should be applied to each department. Be sure to explain your recommendations in detail.
Leadership Traits
Ethical Organization Characteristics
Identify elements
Identify missing elements
Learning Organization Characteristics
Identify elements
Identify missing elements
Part III: Strategic Plan Summary
Conclusions
Recommendations
Implementation
Discuss how you will implement your strategic plans, including how teams should be implemented in each department
Develop a brief roadmap for implementation
Identify the primary benchmarks to assess success or failure
Risks
Part IV: Self-Reflection SummarySelf-reflection is the key to good leadership and good management. Reflect on what you have learned in this class and on what you gained from your Bachelor of Science program. Based on your reflections, discuss the following:
Five or six key “lessons” learned from the textbook and the content that will help you in your career.
Consider what you have learned throughout this program. Discuss career opportunities that interest you in business.
Include what you have learned about yourself.
Evaluate how your personal biases and assumptions have affected your work in the past and how you plan to manage them in the future. Your final product will be in an MS Word document approximately 8–12 pages in length and utilizing approximately 4–6 scholarly/professional sources. Your document should be written in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; and display accurate spelling, grammar, and punctuation.Submit your final Strategic Business Plan—Part II—Strategic Plan with your self-reflection summary
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Harley-Davidson
Scott Patrick
Introduction
Harley-Davidson, Inc. operates inanexpandedmarketaroundthe world.
Harley-Davidson’s visionis basedontravelingandmakingsure thatcustomer
satisfactionis key.
In2009, itsufferedacatastrophicfinancialmassacre thatputthe companydeep in
the red.
Overview
▪ The company had a major net loss of 55.1 million
dollars. They were in the red during Q4. The loss was
over 218.7 dollars.
▪ Sales were the natural cause of the failure. Their
competitors had a major gain.
▪ ReconstRuction followed to make suRe that it didn’t
happen again.
“Delivering Results Through Focus” Strategy
▪ Harley-Davidson focuses on expansion and products
to make suRe that the deficit wouldn’t continue on.
▪ The following is from ceo keith wandell:
▪ “Focusing our investment behind the uniquely strong Harley-Davidson brand
provides the most attractive path to sustained, long-term growth,” Keith Wandell
said. “We also expect to achieve substantial gains in the efficiency of our
operations through continuous improvement.” (Madson, Bart, 2010).
Needs from the Company
▪ Must take advantage of
the loyal customer base.
▪ Must not be a two season
company, but operate as
a year around facility
to maintain revenue and
sales increases.
▪ Must avoid the threats
from the marketplace by
price competition and
special offer discounts.
Conclusion
theRe’s global expansion to help off-set the money issues
created by the recession period. Harley-davidson must
take pride in the customer base and give into customer
satisfaction by beating Rivals’ pRices. they must be an
overall year around business.
References
▪ Madson, bart. “Harley-davidson down $55 mil in 2009”.
Jan 22, 2010.
Running head: STRATEGIC BUSINESS PLAN
STRATEGIC BUSINESS PLAN
Scott Patrick
Argosy University
12/27/2017
STRATEGIC BUSINESS PLAN
2
Strategic planning plays an integral role in giving the business a long-term
direction. The managers can align the operations to the overall strategic goals. Without
putting such plans in place, a firm will be like a duck moving aimlessly in the mud. The
business will find itself wasting resources and making losses. As a result, the investors will
lose their money, the employees will be rendered jobless, the company will have to liquidate
and many stakeholders affected. Since the future is unforeseen, there is need to have
contingency plans in place for any eventuality. The motorcycle industry is no different. There
is need to make sure the business come up with strategies such as cost minimisation,
increasing revenues, overcoming competition amongst others. This not only places the
company in the best place to counter the shocks in the markets but also a way to respond to
the drastic changes.
Many entrants couple the motorcycle industry. Each player is keen on
increasing their market share and penetrating the new markets. Consequently, aggressive
advertising and product promotion have been the order of the day. The manufacturers have
been keen on producing products that are not only economical but also offer value for money.
The firms have offered bikes with various features and those that are highly differentiated.
Globalisation has led to the need to have branches in multiple countries across the globe.
These companies have collaborated with local partners who facilitate the assembly and
distribution of their products. This has not only increased the presence of these companies but
also resulted in growth in revenues. The businesses have been keen on tapping the various
niches in the market. This includes the surge in motorbike transportation, agriculture, sports,
security and the women bikes.
Potter believes that competition can be looked at from four angles. This
includes the threat of substitutes, the supplier and the buyer’s power and the threat of new
entrants (Porter, 2008). These four result in the overall competitive rivalry. The products
STRATEGIC BUSINESS PLAN
3
from the various manufacturers may have similar specifications. This implies that they can be
used in place of each other. This not only makes the competition in this industry intensive but
also affects customer loyalty. The ease with which the customers can switch from a brand to
the other means that the companies have to be keen on their pricing. They have to make sure
that the rival products are not relatively cheaper and the machines they have offer value for
money. The threat of new entrants is an issue that has adversely affected the manufacturers in
this industry. Companies in Asia and India have been able to sell their products in the US.
This can be attributed to the globalization that has facilitated internet and online sales. Any
company with resources can distribute its products far and wide. This has made local
manufacturers fight for the market share with the well-established foreign counterparts. This
requires firms to come up with the best strategies that will enable them to attract the target
sales levels. The supplier purchasing power is relatively low as they are no cartels in this
industry. This means that the manufacturer can purchase from any supplier who offers
attractive rates for their commodities. Besides, there is low bargaining power by the buyers.
Some of the brands are readily associated with prestige hence customers have no problem
buying them at high prices. The customers also have little influence in determining the rates
set by the manufacturers. Businesses are keen on using strategies such as cost leadership and
product differentiation to counter competition efficiently.
STRATEGIC BUSINESS PLAN
4
It is estimated that more than half a million motorbikes are purchased in the US.
Harley- Davidson commands a more significant market share. Polaris, Ducati, Honda, and
Yamaha also have a market share. However, Honda sales more than seventeen million
motorcycles globally.
The number of female customers has increased steadily. There has been the need
to manufacture models that are suitable for the female riders. This new market niche has
boosted sales in many companies. The bikes are designed to be slim, lightweight and in the
feminine colors such as pink.
The financial ratios provide useful analysis into the health of a company. There
are various categories of ratios that can be used. This includes the liquidity, leverage,
profitability and efficiency ratios (Penman & Penman, 2007). The liquidity ratios measure the
ability of a firm to meet its short-term obligations. The current ratio and the quick ratios are
grouped into this category. The former is obtained by dividing the current assets by the
STRATEGIC BUSINESS PLAN
5
current liabilities. The latter is found by subtracting the inventory from the current assets and
dividing it by the current liabilities. A look at the five-year period indicates that the business
has always maintained a ratio that is greater than one. This implies that the business is liquid
and can meet its financial obligations when they fall due. The leverage ratios look at the
amount of debt in a company. The financial leverage obtained by dividing the liabilities with
the total assets and the debt to equity ratio found by dividing the debt by equity is found in
this category. In the past five years, the company has shown a worrisome trend. The 1.71 in
2012, 1.14 in 2013, 1.29 in 2014, 2.63 in 2015 and 2.43 in 2016 shows that the business debts
levels may be unsustainable in the long run. The financial leverage also indicates 3.59, 3.13,
3.28, 5.43 and 5.15 in the five-year period.
The profitability ratios demonstrate how profitable a company is. The return on
equity is obtained by dividing the net profit by the total capital. Harley- Davidson has an
ROE of 25.07 in 2012, 26.37 in 2013, 28.54 in 2014, 31.68 in 2015 and 36.82 in 2016
(Harley-Davidson Inc. n.d.). The efficiency ratios measure how well the management puts the
business assets to use. The fixed assets turnover, the asset turnover, and the inventory
turnover can be used to gauge this. The fixed turnover is obtained by dividing the revenues
by the fixed assets; the asset turnover is obtained by dividing the sales by the assets whereas
the inventory turnover is found by dividing the sales by the inventory. The business has
STRATEGIC BUSINESS PLAN
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maintained a fixed assets turnover of between five and seven. This indicates that each dollar
invested in the business generates more than five times of revenues. However, the assets are
not managed well as each dollar invested in them yields less than a dollar in the five-year
period. The inventory turnover has been decreasing steadily from 8.42 in 2012 to 6.62 in
2016. There is a need for the management to look into this and try to correct it.
Customer
The company has loyal customers who spend on the company products at all
times. The business offers sales services to its customers. Harley- Davidson is keen on
making sure the business provides value for money for its customers. The firm engages the
customers in making sure it makes improvements to its products thereby making better
commodities for the markets. This increases not only the customer relations but also their
satisfaction.
Internal Business Process
Harley- Davidson has been keen on making sure the business is efficient. This is
achieved by the use of technology in its manufacturing process. This facilitates a faster
manufacturing process. The business also benchmarks itself with the market leaders to make
sure it has the best manufacturing process in place.
Learning and Growth
The business has been keen on on-job training to enhance the skills of its workers.
This implies the identification of skills gaps and the right training to fill such. This reduces
the learning curve and makes sure that the workers are well conversant with what is expected
of them.
Competitors
STRATEGIC BUSINESS PLAN
7
The main competitors are Yamaha Corporation ADR and Honda Motor Co. Ltd
ADR. Yamaha Corporation is a liquid company as it has current ratios ranging from 2.59 to
3.30 in the five-year period. The quick ratio ranges from 1.41 to 1.90 in the period (Honda
Motor Co Ltd ADR, n.d.). Honda, on the other hand, has a current ratio higher than one
whereas the quick ratio is less than one. The quick ratio shows that the business may not be in
a position to meet its short-term obligations. A look at the leverage ratios shows that the
financial leverage for Yamaha ranges between 1.80 and 1.43 (Yamaha Corp ADR, n.d.)
whereas that of Honda ranges between 2.68 and 2.54. A look at the debt to equity ratio
indicates that both firms have their obligations within sustainable levels. This is because the
ratios are below one. HD company has unsustainable debt levels. This makes the business to
incur relatively higher financial costs and expenses. There is need to check the debt levels to
make sure they are well managed. Increased debt levels make the business risky as compared
to its competitors.
YAMAHA
HONDA
A look at the return on assets shows that Yamaha is more profitable than Honda.
This is demonstrated by a yield of between one to ten percent in Yamaha against the seven to
nine percent in Honda. However, this is slightly lower than what HD company offers to its
investors.
STRATEGIC BUSINESS PLAN
8
YAMAHA
HONDA
Conclusion
The motorcycle industry is well established and known worldwide. At one
point we have used a motorbike to move from one area to the other. The number of
manufacturers has also been on the rise. Consequently, various brands are used in multiple
parts of a country. Features like engine capacity, the size of the bike, the fuel consumption
and the speed are some of the features that excite the consumers. The companies have found
themselves in a place where they have to fight for the market share. The lack of barriers to
entry has played a role in increasing the competition in the market. In a field characterized by
the survival of the fittest, it is the stronger who survive and live to tell the story. Managers
have been able to put their visions and goals into strategic plans that have to be implemented
by the business. In this contest, the versatile and well-steered ship will become victorious.
STRATEGIC BUSINESS PLAN
9
References
Harley-Davidson Inc. (n.d.). Retrieved December 29, 2017, from
http://financials.morningstar.com/ratios/r.html?t=HOG®ion=usa&culture=en-US
Honda Motor Co Ltd ADR. (n.d.). Retrieved December 29, 2017, from
http://financials.morningstar.com/ratios/r.html?t=HMC
Penman, S. H., & Penman, S. H. (2007). Financial statement analysis and security valuation
(p. 476). New York: McGraw-Hill.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business
review, 86(1), 25-40.
Yamaha Corp ADR. (n.d.). Retrieved December 29, 2017, from
http://financials.morningstar.com/ratios/r.html?t=YAMCY®ion=usa&culture=en-US
By: Scott Patrick
Founded in 1903 and incorporated
in 1981
Manufactures and sells customized,
touring and cruiser motorcycles
Company has two main segments:
• Motorcycles and Related Products
(Motorcycles)
• Financial Services
Motorcycles segment had
approximately 5,400 employees as
of end of 2016
Offers financial and insurance
services
Motorcycles of superior quality
Distinct sound
Innovative design
Superb styling
Personalization
The company also provides
• Accessories for customization of
the motorcycles
• Riding gear and apparels
• Casual apparel and accessories
• Service parts
• Riding experiences and other
events
H-D offer s
motorcycles in 6 main
categories: H-D Street,
Sportster, Softail,
Touring, CVO, and
Trike
The motorcycles
compete mainly in the
cruiser and touring
segments
Main categories:
Cruiser
Touring
Standard category
Sportbike category
Dual category
H-D Street
Harley-Davidson
Street 500
Harley-Davidson
Street 750
Street Rod
Sportster
Superlow
Iron 883
1200 custom
Forty-Eight
Roadster
CVO
• CVO Street Glide
• CVO Road Glide
• CVO Limited
Trike
• Freewheeler
• Tri Glide Ultra
Softail
Streetbob
Low Rider
Softail Slim
Fat Bob
Deluxe
Sport Glide
Fat Boy
Heritage Classic
Break Out
Touring
• Road King
• Street Glide
• Road Glide
• Road King Special
• Electra Glide Ultra
Classic
• Street Glide
Special
• Road Glide Special
• Road Glide Ultra
• Ultra Limited Low
• Ultra Limited
Cruiser targets the
discerning customers
Touring category
targets the travellers
Standard categorymainly targets the
common and basic
users
Sportbike-for the
racers and recreational
use
Dual categorycustomers that want
both worlds of public
life as well as off road
and recreational
activities.
Product offeringlimited offering
Brands and products
that are environmental
conscious
Limitation- supply
chains and global
expansion
Smaller engine
capacity bikes
Diversity in segments
Joint
ventures in global markets: Africa and
Asia
Benefits:
• Greater access to the market
• Increased networks of distribution
• Increased capacity
• Risk sharing
• Greater access to resources
Strength
Wide and diverse range
of customers
Multiple demographics
Customer loyalty
Wide product offerings
Superior quality products
Innovative product
offerings
Vast experience in the
production, sales and
marketing etc.
Strength
Strong and innovative marketing strategy which utilizes
both digital and experiential activities
Offer additional services such as finance and insurance
Good customer relations with its customers through
Harley Owners Group (HOG)
Wide distribution network through a number of
independent dealers
Concern for environment
Flexible manufacturing process-surge manufacturing.
Scalability and efficiency
Weaknesses
Overreliance on third parties various operations
and other administrative activities
Limited market reach
Restricted supply chain
Limited production facilities outside the U.S
Overdependence on the U.S and North America
market
Weaknesses
Reliance on a limited number of suppliers
Narrow product mix
Sales are significantly impacted by seasonal retail
changes and sales patterns
Sales are also affected significantly by weather
changes
High costs for payment of pensions and healthcare
benefits
Relies on unionized workers
Competition from other motorcycle manufacturers
Opportunities
Research and
development
Wide distribution
network
Increases in
global ridership
Continued
success with the
outreach
customers in U.S
Opportunities
Greater product momentum brought about by
new products
Wider distribution network with
Increases in international dealer networks
Opportunity for alliances with other
complimentary businesses
Newer segments like the women and younger
riders
Threats
International, federal, state
and local environmental
laws
Regulations both
internationally and
nationally: tax and
financial regulations.
Future changes in the legal
and regulatory frameworks
Imitations
Change and preference
for electric products
Threats
Continued entry of
competitors
Companies offer much
lower prices
Seasonality affecting the
sales of the organization
Changes in economic
conditions both
regionally and globally
Cyber security concerns
Market risks: foreign
exchange, interest rates
and commodity prices
Threats
HDFS faces credit risks
Weather changes have
a direct impact on retail
sales
Dependency on third
party suppliers for their
raw materials and
component parts
Unionized labor
Possible strategies
Widen the product
offering
Pursue more innovative
production strategies
More investment in
research and
development in
efficient and greener
technologies
Target newer segments:
women and younger
riders
Possible strategies
Encourage younger
riders
Actively pursue
partnerships
Acquisitions in existing
market and traditional
bases
Longer term labor
agreements for labour
Ideas/strategies ranking
1.
Widen the product offering
2.
Actively pursue partnerships in the newer markets
3.
Target newer segments: women and younger riders
4.
Pursue more innovative production strategies
5.
Actively pursue partnerships in the newer markets
6.
More investment in research and development
7.
Enter into longer term agreements for labour
8.
Acquisitions in existing market and traditional bases
a. Expand product offerings
Consider widening the
offering
Environmental concerns
Introduction of smaller sized
engines: 350CCs and less
Increased stringent
environmental regulations
Building on current
innovative products
Advantages: larger market
share, more revenue
Drawback-additional
investment, training and
recruitment
b. Increased focus on international markets
Opportunities exist in the emerging economies
More assembly and production facilities
Reduce overdependence on the U.S market and spreads
risks
Reason for picking the idea: EMEA and Asian Pacific
experienced significant growth
Existing focus on international markets which can be
leveraged
Advantages: wider and more diverse market for H-D, greater
market share.
Enhanced performance, greater sales which results in more
revenues.
Drawbacks: management and investment in these new
markets will need a lot of resources
Harley-Davidson Retail Motorcycle Sales
4th Quarter
2016
2015
26,077
26,044
Canada
1,257
Latin America
Full-Year
2016
2015
0.10%
161,658
168,240
-3.90%
1,255
0.20%
10,203
9,669
5.50%
2,637
3,082
-14.40%
9,701
EMEA
7,891
7,689
2.60%
45,838
43,287
5.90 …
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