Comprehensive Case Analysis (you can edit this one with the public corporation you have chosen) - Essay Example

Running Head: Comprehensive Case Analysis Comprehensive Case Analysis [Institute’s Comprehensive Case Analysis Prepare two matrices to justify the strategies you will be recommending. SWOT Matrix for Harley Davidson Internal Factors External Factors Strengths - S Brand Recognition Broad Product Portfolio Trademark Licensing Focused Research and Growth Activities Weaknesses - W Product Recalls Small number of Suppliers Reliance on Domestic Market Dip in Product Quality Opportunities - O Restructuring Plans International Expansion New Product Development Increasing market of female/young riders SO Strategies Extend marketing efforts towards market segment of females and young riders Expand production to overseas market WO Strategies Adopt aggressive approach to pursue foreign markets Threats - T Competitive Landscape Laws on Environmental Protection Procurement of Raw Material Higher Production Cost ST Strategies Promotional activities targeted at loyal clientele can increase the sales WT Strategies Decrease the selling price to attract new customers SPACE Matrix for Harley Davidson Internal Strategic Position External Strategic Position X-Axis Competitive Advantage (CA) Industry Strength (IS) Product Quality Market Share Product Life cycle Loyalty Average -1 -2 -1 -1 -1.

25 Ease of Entry Growth Potential Capacity Utilization Profit Potential Average +5 +5 +4 +4 +4.5 Total X-Axis Score = 3.25 Y-Axis Financial Strength (FS) Environmental Stability (ES) Working Capital Leverage Return on Investment Liquidity Average +4 +6 +3 +4 +4.25 Fluctuations in Demand Competitive Pressures Competitors’ Price Risk Average -2 -4 -5 -2 -3.25 Total Y-Axis Score = 1 The company should adopt aggressive strategies Discuss the advantages and disadvantages of two alternative strategies.

The two selected alternative strategies are vertical integration strategies and diversification strategies. Vertical integration strategy is advantageous because it decreases the cost of transportation. For example, horizontal integration may facilitate the company in merging with businesses that are far-off. The merging businesses can supply the products of both companies to the local market. This lessens needless costs incurred during transportation. Another benefit is that vertical integration improves synchronization within the supply chain.

Backward and forward integration strategies enhance the relationship of suppliers and distributors with the business (Rothaermal, 2012). Vertical integration strategy has some drawbacks as well because it can cause capacity balancing problem where the firm is required to maintain excess capacity for downstream activities to have adequate supply. Diversification strategy is advantageous because it can increase profits for the company. “It ventures in new line of business by either providing related or unrelated product” (Rothaermal, 2012).

This improves the current product offerings, thus increasing the company’s profits. It also enables the company to escape rivalry from other companies producing similar products. Diversification strategy can prove to be disadvantageous because high costs may be incur in developing new products, and penetrating new markets. Recommend specific strategies and objectives for the firm to follow over the next three (3) years. Include an itemized estimate of costs for each year. The objectives for the firm during the next three years are: to identify consumers’ requirements to adopt an effective approach for improving productivity to find out methods of improving customer satisfaction to identify the most successful approach for advertising and promotional activities to find out market gaps and explore new markets First strategy, which is suitable for Harley Davidson, diversification as it involves venturing into new products.

Another strategy that is appropriate for the business is product differentiation. This involves making the products which are unique and different from those of the rivals. Moreover, backward and forward integration strategies are also suitable for enhancing supply chain coordination (Hansen, 2011). Itemized Estimate of Costs for nest 3 Years Strategies 1st Year 2nd year 3rd Year Diversification 750 million USD 450 million USD 200 million USD Product Differentiation 350 million USD 400 million USD 300 million USD Horizontal integration Strategy 40 million USD 35 million USD 20 million USD Backward Integration 55 million USD 45 million USD 35 million USD Forward Integration 95 million USD 80 million USD 70 million USD Compare and contrast the recommendations to the actual strategies planned by the company.

The actual strategies being used by the company are growth strategy and product differentiation strategy. These strategies have both similarities as well as variations in comparison with the aforementioned strategies. Initially, both the recommended and actual strategies involve high implementation costs. When the listed estimates of costs are evaluated against the actual costs, the ratio stays more or less identical. This indicates that the costs incurred are the similar. Moreover, both strategies are intended for developing the operational activities of the company.

However, the backward and forward integration strategies, which are focused on enhancing the supply chain coordination, are slightly different because the actual strategies focus on the company only and do not take its partners into account. Specify how the recommendations can be implemented and the expected results. Include a recommended timetable for the suggested action items. The recommendations can be implemented in a number of ways. The method of implementation is crucial for the success of the new strategies.

First of all, yearly goals have to be set. These yearly goals should go well with the long-term goals of the company. The subsequent step is to categorize policies necessary for the implementation. Henceforth, the management should allocate both monetary resources as well as human resources to the recommended strategies. For example, required capital should be given for activities related to product diversification. Apart from that, the company should form a group of workers, responsible for dealing with the dealers and intermediaries, and handling related discussions.

This is particularly for the vertical integration strategies. For product differentiation, there is a need to create new models as part of this strategy execution. During the implementation phase, incentive and reward plans should be modified. This is important, mainly when the organization is attempting to control the opposition towards change. Finally, the strategies will be executed by “connecting the payment and performance to the strategies” (Dess et al, 2011). This is essential to support competence and efficiency during strategy implementation.

Timetable Implementation Actions Time Frame Setting up yearly goals First two months of the year Making policies Third and fourth month Proper allocation of resources During 5th month Execution of strategy Starting form sixth month to the year end Explain in detail how you will review and evaluate the success of the strategies you recommended. Success of the strategies will be evaluated by analyzing the major external and internal factors that influences the operational activities of the business.

Here, the main interest should be to identify the reaction of the external and internal factors towards the strategies (Dess et al, 2011). Initially, it should be noted that how the company’s rivals have acted in response to the strategies, and whether or not they have modified their approach. Next, the adaptability of the strategies with new technology and manufacturing modifications should be checked. This will be very important to observe if the strategies are adaptable enough to put up external environmental changes.

If the strategies are in tandem with the environmental alterations, then they certainly help in organizational success. In addition, key internal factors should also be checked whole evaluating and assessing the strategies. Primarily, the company financial standing should be checked during the time of strategy implementation. A stable fiscal performance will eventually show the success of the strategies (Hitt et al, 2012). An additional key internal factor to think about is the earlier weaknesses of Harley Davidson.

If the causes of the weaknesses have been lessened, then the strategies are compatible with the business’s mission and vision statement. If the strategies do not fit the standards mentioned earlier, then they should be re-evaluated. References Dess, G. Lumpkin, G. T. Eisner, A. and McNamara, G. (2011). Strategic Management: Text and Cases. 6th edn. McGraw-Hill/Irwin. Hansen, M. T. (2011). Great by Choice: Uncertainty, Chaos, and Luck--Why Some Thrive Despite Them All. HarperBusiness. Hitt, M. A. Ireland, R. D. Hoskisson, R. E. (2012).

Strategic Management: Concepts and Cases: Competitiveness and Globalization. 10th edn. Cengage Learning. Rothaermal, F. (2012). Strategic Management. McGraw-Hill/Irwin.