Strategic Direction of Harley Davidson - Essay Example

It has been recommended that the best way forward for Harley-Davidson is to expand overseas and outsource its production and assembly lines, especially in emerging economies like China and India. To its credit, the company’s management has already been making efforts in this direction. Summary of Strategic Direction & the Balanced Scorecard From the analysis of the company’s own strengths and weaknesses, as well as the opportunities and threats to the motorcycle industry at large and the heavy motorbike segment in particular, it has been suggested that the best way forward for Harley- Davidson at this juncture is to expand overseas in emerging economies like China and India and also to think of setting up production and assembly lines for the local manufacture or assembly of H-D motorcycles.

This will not only help lower costs, as Asian labor is cheaper than the American or European equivalent but also to increase market size, revenues and profits. The recessionary trend in Western economies makes to difficult to achieve sales and profit goals there. It is therefore recommended to spread the risks and even create a production or assembly hub in Asia, from where finished products can be transported to areas where there is a demand for them. Coming to the matter of the Balanced Scorecard, this will compare actual results attained to an agreed target value for financial and non-financial measures, such as Financial, Customer, Internal Processes and Learning and Growth.

For H-D’s agreed best-recommended strategy, we could have actual sales in units and type of motorbike, revenues and profits earned, type of customers targeted in terms of earning capacity and lifestyle, costs and expenses to set up production/ assembly plants in India and China and comparison of common and differentiating factors relating to customer choices, culture, purchase behavior and lifestyle in different areas of the globe. Stakeholder Interests Of course, in today’s environment, a company has a number of different stakeholders and each of them have different interests in the company and its operations.

For example, creditors and banks would like to see that it has enough revenues and profitability to cover its interest payments, as well as make the required installments of principal and interest at the agreed date and rates. They would also look at the debt and equity balance before deciding to lend. Shareholders would expect a return in terms of capital gains and dividends. Employees would be looking for job stability and a fair wage. In this way, Harley Davidson has to satisfy the interests of various stakeholders at the same time.

Company History, Purpose & Goals Harley Davidson Inc. was started by a group of friends and entrepreneurs at the beginning of the 1900s. The name of the company is, in fact, a combination of the two families which combined their skills and efforts to get the business off the ground.