HARLEY-DAVIDSON INTERNAL ENVIRONMENT Harley Davidson is a major manufacturer of heavy bikes worldwide. Its brand is so valuable as its production. Company mission states: We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments (H-D Brochure 3).
Let us try to examine and consider company from inside its internal environment, capabilities and features. Over 80% of the suppliers of Harley-Davidsons materials have been located within 160 miles of the manufacturing facilities. By using a just-in-time system, named MAN (materials as needed), Harley adopted a very efficient approach to manufacturing.
Offering long-term contracts to suppliers who have met the companies requirements and making their own pickups allowed Harley-Davidson to cut costs. Using modern technology in research and development and computer-aided drawing also gave them competitive advantage. A product development center in Milwaukee built in 1996 lead to shortening the time of product to market (Vance).
Employee pride was another strong point in the Harley-Davidson philosophy. Employee benefits, such as stock options, have lead to high moral. Employee training and development gave more satisfaction to the workers.
The Essay on Harley Davidson Company Market Share
... company fails, Harley-Davidson will lose all that valuable capital, capital that could have been used for new product development. This outcome may negatively affect Harley-Davidson ... great ability to manage its company resources. Harley-Davidson also has as a very good relationship with its employees. Harley-Davidson offers long-term agreements to ...
From the standpoint of productivity happy workers are also more productive workers. Also workers were encouraged to participate in demonstration rides for potential customers. This proved to be very expensive yet worthwhile to the company and customers alike. Harley-Davidson, Inc. employs around 10,000 people worldwide. There are more than 1,300 Harley-Davidson dealerships in 48 countries worldwide One of the things that sets Harley-Davidsons culture apart from other businesses is employee involvement. The participation of employees in the business has also been an essential component of success. In fact, at Harley-Davidson, we consider our employees to be our greatest competitive advantage (H-D Brochure 13).
There is a greater degree of Harley stock owned by its employees signifying strong faith in the company. Company Values stating: Tell the Truth. Be Fair. Keep Your Promises. Respect the Individual. Encourage Intellectual Curiosity (H-D Brochure 11).
In the late 1980s was created the Harley-Davidson Business Process with the goal of better aligning employees contributions with the Companys goals. The idea is for the Company to share its vision so that all of our people can put their efforts into working in the same direction. Harley-Davidson operations are grouped into three broad, functional areas as depicted in the chart below. These Circles, as they are called, encourage a highly collaborative culture and well-coordinated decision making. The Create Demand Circle includes the marketing and sales functions for motorcycles, parts & accessories, and apparel; new business development; customer service; motorcycle styling; government affairs; and our owners groups. The Produce Products Circle includes the engineering function; manufacturing operations; materials and cost management; and quality functions. The Provide Support Circle includes finance; human resources; legal; information services; communications; and strategic planning. Circle leaders jointly manage their respective circle business and develop strategy.
No single individual is the circle leader. Rather, the leadership role of each circle moves to different members based on the issue being addressed (H-D Brochure 15).
All three circles overlap to create the Leadership and Strategy Council (LSC).
The LSC consists of members from each Circle, as well as the Chief Operating Officers of Harley-Davidson Motor Company, Buell Motorcycle Company and Harley-Davidson Financial Services, and the Chief Executive Officer of Harley-Davidson, Inc. The LSC is responsible for making decisions on business issues that impact the entire Company, developing high-level policies and advising the C.E.O. According to Harley-Davidson Corporate Governance Policy, The Board of Directors shall maintain three committees: a Nominating and Corporate Governance Committee, a Human Resources Committee and an Audit Committee (H-D Governance Policy 1).
The Business plan on Business Analysis Of Harley Davidson Motor Company
A comparison of two direct competitors in the motorcycle market, Harley Davidson (a fortune 500 company) and Honda, a producer of cars and motorized vehicles, reveals through the analysis of the businesses that investment into Harley Davidson would benefit the investing person or group. The American company, based out of Milwaukee Wisconsin raised its profits by 44% to $170.2 million in the first ...
Each year, a portion of the Companys profits is earmarked for the Harley-Davidson Foundation. The Foundation was formed in the early 1990s, and has consistently provided support to non-profit organizations and specific endeavors that will improve the quality of life in the communities in which Harley-Davidson does business.
To allow the Company to have the greatest impact with its donations, the Foundation focuses the lions share of its giving on improving education and neighborhood revitalization. Additionally, the Foundation supports arts and culture, health initiatives and the environment. Jeffrey Bleustein, Harley-Davidson CEO, in his letter to shareholders said: Heading into our second century, company have an outstanding team and a solid road map in place Harley-Davidsons Strategic Plan for Sustainable Growthwith its fundamental objectives to grow value and to strengthen the brand. Behind that seeming simplicity lies the engine that drives everything we do (2003 Annual Report 8).
Bibliography:
2003 ANNUAL REPORT. HARLEYDAVIDSON, INC. 2003.
Homepage. HARLEYDAVIDSON MOTOR COMPANY BROCHURE. HARLEYDAVIDSON, INC. 2002. Homepage. CORPORATE GOVERNANCE POLICY. HARLEY-DAVIDSON, INC. 2003.
Homepage. Chris Vance. ANALYSIS OF HALEY-DAVIDSON 1998. Prepared by Chris Vance. EXECUTIVE SUMMARY. .
