Abstract
This paper is on Harley Davidson’s strategic management of its mission, vision and stakeholders and the degree to which Harley Davidson is proceeding towards it. Also this paper will identify relevant stakeholders and discussion over Harley Davidson’s alignment towards it strategic direction. Finally, some recommendation will be offered to Harley Davidson’s executives on the basis of findings and analysis of data and history.
Introduction
Harley Davidson’s Mission is "We ride with our customers and apply this deep connection in every market we serve to create superior value for all of our stakeholders" (“corporate-ir”).
In retail, Harley-Davidson with a dealer network spread worldwide creates vision of strategy implementation to maintain its position as best dealer in motorcycles. In a combined effort with dealers Harley Davidson marshals its systems, resources, capabilities, talent and tools to improve the company. The goal is quite concise and clear: providing premium experience to every customer everyday and everywhere with aiming to improving profitability of dealers and value for stakeholders.
Harley Davidson’s Vision is "We fulfill dreams inspired by the many roads of the world by providing remarkable motorcycles and extraordinary customer experiences. We fuel the passion for freedom in our customers to express their own individuality" (“corporate-ir”).
Harley-Davidson keeps fulfilling dreams of many with remarkable motorcycles and outstanding customer experiences in coming future. Fulfillment of dreams is team effort and at Harley Davidson this has been the foundation along with extraordinary efforts of Willie Davidson ex-head of styling at Harley Davidson. Harley Davidson commits to provide best quality of motorcycles and their products to their customers worldwide. The motto of Harley Davidson is customer satisfaction which can be experienced with taste of motorcycles which satisfy customer needs. Harley Davidson aims to remain competitive and gradual growth in all markets while remaining in profit and surviving in market. Harley Davidson employees are foundation of their company which steers the company ahead. The logo of shield displays superior quality and delivery of quality products pushes the bar to greater heights. Customer loyalty, Honesty and morals are the heart and soul of Harley Davidson.
Values of Harley Davidson
Tell the Truth.
Be Fair.
Keep Your Promises.
Respect the Individual.
Encourage Intellectual Curiosity.
As a value telling truth is taken seriously in Harley Davidson. The company sternly believes in timely and accurate communication which includes transactions and company records. Standards have been established for promotion of fair, full, timely, accurate, understandable disclosing of data in reports. Financial control system has been implemented to respect and control of company assets. Harley Davidson deeply believes in integrity as expected behavior and telling the truth is important value. Harley Davidson takes responsibility in accurate representation through marketing, sales efforts and advertising of their products and also in business dealings and casual conversations and presentations.
Whenever Harley Davidson needs to compare their product with that of their competitors, they make the comparisons made are factual and accurate and they are based on verifiable research which the company can easily rely on. With use of public speaking, print media or social media, Harley Davidson ensures they never disclose any confidential information, vague assumptions and display of respect for their customers and stakeholders.
Important Stakeholders at Harley Davidson
HARLEY-DAVIDSON, INC. STRATEGIC PILLARS Growth
The opportunity for growth for a company with Harley Davidson’s potential is immense in manufacturing and product development. The company continues expansion of their services to many new roads across this world. Harley Davidson added 35 new deals in countries like India, Mexico, Turkey, Thailand, Brazil and China in 2011. The market share in Unites States market alone stands at 57.1% in the year 2011. Operating income has doubled from previous year and stands at $548.1 million and revenue has increased by 9.3 percent. In retail, brand of Harley Davidson has displayed its appeal and power through increase in sales of motorcycles by 5.9% globally from 2010.
Continuous Improvement
Flexible Manufacturing: York Operations were set up in 2011 and has been helping in company transformation. Tri Glide and Softail motorcycles are being under single roof in one assembly line. In early 2013, the York facility will have surge facility which will enable the company to adapt to changes in production on the basis of seasonal demand. Same changes are being implemented in other facilities based in Milwaukee, Kansas city, Wisconsin and Tomahawk.
Shorter Product Development Times: Focus is on three elements for product development:
1) Increased attention on best opportunities for products;
2) Reduction in time-to-market;
3) Increasing the capacity for product development.
Leadership Development
At Harley Davidson operations are divided into three categories
Create Demand Circle comprises of sales and marketing functions for motorcycles, accessories & parts, apparels, motorcycle styling, Harley owners group, training of rider skills, archives, museum and customer service of products sold.
Circle of Produce Products comprises of manufacturing operations, engineering functions, cist and materials management, quality and styling functions.
Circle of Provide Support comprises of human resource, finance, government affairs, legal, communication, information services, new business development and strategic planning.
Leaders of these circles manage business in these circles and take care of strategy development. There is no individual responsible for circle leader. Leadership of each circle depends upon issue on the address.
Sustainability
Harley Davidson preserves and renews rider’s freedom and considers impact of their decisions on local communities, employees, partners and environment. Sustainability is a long term component of company’s corporate strategy. Harley Davidson is committed to renew and preserve their experience and brand for coming generations by market inclusion and value creation.
Recommendations to Harley Davidson Executives
European market is the biggest international market in world which Harley Davidson should exploit this market through introducing products on European market.
Youngsters and Women are becoming interested in bike riding. Males in mid-forties are most common buyers of Harley-Davidson bikes so ensuring youngsters and women are on board will generate higher revenue and profits for Harley Davidson.
International market has over the years increased and now is larger than the United States market. Harley Davidson needs to ensure that they tap into this ever-growing market and exploit them get better sales especially in periods when sales in Unites States market is down.
With use of Buell, Harley Davidson can introduce smaller sports bike in emerging markets and compete with Asian and European companies selling bikes in their countries. Harley can enter these markets with joint ventures with domestic vehicle manufacturers.
Repurchase is another segment which Harley needs to focus on as 92% of customers who purchase motorbikes tend to repurchase in future.
Quality parts are also another aspect which Harley Davidson has made its brand name. Customers in United States and all over world consider Harley produce as highly regarded. Harley can teach these customers about quality parts and exploit this knowledge and gain customer loyalty.
Conclusion
Harley Davidson is currently on track with their strategic management of mission, vision and values. Keith Wandell, Matthew Levatich and Richard Beattie are three main stakeholders in Harley Davidson. Harley Davidson is aligned to its strategic pillars of growth, continuous replacement, leadership development and sustainability. After analysis and findings, Harley Davidson needs to start exploiting international markets, youngsters and Women bikers, re-purchase segment and quality parts.
References
2012. Harley Davidson 2011 Annual Report. Retrieved from. http://media.corporate-ir.net/media_files/IROL/87/87981/HD.pdf
Everyday Values: Harley Davidson Code of Business Conduct. Retrieved from. http://media.corporate-ir.net/media_files/IROL/87/87981/Code_of_Conduct%20-%20English.pdf
Investor relations. Retrieved from.
http://investor.harley-davidson.com/phoenix.zhtml?c=87981&p=irol-govhighlights&locale=en_US&bmLocale=en_US
2013. HOG Major Holders. Retrieved from. http://finance.yahoo.com/q/mh?s=HOG+Major+Holders
2013. Harley Davidson Motor Company. Retrieved from. http://files.shareholder.com/downloads/HDI/0x0x329002/fe33c217-5914-4dc1-ae6d-44374a5806c9/bckgrdr.pdf
