Harley Davidsons International Business Strategy - Essay Example

Harley Davidson’s International Business Strategy The importance of gaining share in the international market of heavy bikes was realized by Harley Davidson in late 1980’s. 1. The company targeted the end user by talking in his native language. This helped in fast recognition and popularity of the product e.g. the advertisements were specifically made targeting a specific region of the market. 2. Dealerships in Europe and Japan were acquired so that customers after knowing about Harley Davidson can know the places where they can get it from 3. With increase in demand of the product in EU; a warehouse was initiated in Germany for large parts which provided easy availability of spare parts 4. Harley Davidson studied the customer’s psyche and designed/improved the product accordingly e.g. in Germany efforts were made to make the bike’s ride smoother at high speed since Germans love to drive fast 5. As the machine was modified to drive fast; concentration was also given to protection accessories 6. Harley Accessories other than those related to the bike were also introduced. 7. More complete tool kit was designed for international customers 8. Blast motorcycle targeting female customers was introduced which increased female customer % to 9% from just 2% between 1987 to 2002 Since Harley acquired dealership in more than two countries, being a USA based manufacturer has a warehouse in Europe and has an assembly plant in Brazil; I would call Harley Davidson a Multinational Corporation as it perfectly fits in the definition of an MNC. If you were Harley’s Top management in which region of the world you would consider expanding? By the word “expanding” I would consider this question related to expanding the market share; thus exploring new markets! I would consider my expansion in two major countries that are attracting many other international firms; India and China. The two countries hold a lot of potential due to their massive population factor that increases the number of people who would be interested in buying the Harley Davidson Bike. Evaluate the Harley Davidson Decision not to produce overseas. What would the advantages be of overseas production? What problem might the company encounter if it does manufacture abroad? The decision of Harley Davidson of not producing overseas might have some through thinking behind it but I evaluate this as a step backwards by not exploring international production facilities that would surely decrease the cost of production per unit for Harley Davidson bike due to cheap labor available internationally like in countries China; Taiwan, Korea etc With International manufacturing facilities; Harley Davidson can not only take advantage of the cheap labor cost but also other aspects that affect the cost of production e.g. energy cost; Capital cost and the region’s local laws and tariffs that might facilitate Harley Davidson. Through International Manufacturing bases; Harley Davidson can also make effective measures in maintaining their inventories for the near by target Markets. The disadvantage of Harley Davidson opening an overseas manufacturing facility can be a possible slide down of high quality that Harley Davidson has maintained with its product line as Quality standards are much hard to manage from a distance far from the central control. Harley appears to have moved from providing a product to providing a service. Discuss how this movement from product to services may have affected the company. The movement from product to services has affected positively for the company. The sense of adventure that a Harley customer gets from the bike is well tapped by the company. Product maintenance service; after sale customer service and creating accessories other than those related to the bike itself has created a feeling of belong ness to the “Harley Owner Group” These steps has helped in Harley achieving 30% market share internationally for heavy Bikes and 46% in USA for the same. Describe the UPS competitive advantage. The major competitive advantage that UPS has is the constant introduction of modern technology in their systems which make them claim of providing “best services at competitive price. Through technology; UPS is trying to identify ever increasing needs of the customer and catering them with best of services This includes but not limited to acquiring own fleet of aero planes for speedy delivery using computerized tracking system and modern technology for order processing and cargo handling. How does UPS approach customer relationship management? CRM is approached by UPS through UPSnet, which has 500,000 miles of communication lines and satellite links while facilitating the customer relationship-management process. How does technology enable UPS to be a quality driven organization UPS has maintained a high level of quality by integrating technology in its services. UPS right from the beginning is considered to be innovative. Customer packages are processed using advanced technology and are transported by company’s own air crafts. The packaging delivery vehicles are specially designed. The UPS system tracks 821,000 packages daily with its UPSnet which has 500,000 miles of communication lines and satellite links. There are more than 1300 distribution sites in 46 countries. UPS WorldportTM is the latest example of technology being used to increase efficiency and quality in company’s package operation. WorldportTM is capable of handling 500000 packages per hour due to incorporation of high technology. UPS supply chain solution is targeted towards a variety of supply chain challenges faced by the customers. It also coordinates transportation, vendors, contracts and shipments and simplifies international trade and regulatory compliance. Identify the stakeholders for UPS, and explain how these stakeholders potentially influence the company. Stakeholders for UPS include various transportation agencies, transit agencies, planning organizations, public safety agencies, insurance companies, major employers, major event centers, airport operators, fleet operators including commercial vehicle operators, taxi organizations, courier fleets, travelers, traffic reporting services, media agencies, automotive industry, etc. These stakeholders influence the UPS organization in devising its policies for creating a correct measure of equilibrium in company’s financial, societal and ecological responsibilities. These stakeholders also play a vital role while influencing to strengthen transparency and answerability in sustainability reporting inside the organization. What are the key factors that motivate Ryan Newman? Two key motivation factors for Ryan Newman are as follows Passion Ryan Newman was highly passionate towards racing right from his child hood as discussed in the case study; he started racing quarter midgets when he was only 4. His racecar driving instructor in Penske Racing Team, Buddy Baker says about Newman, “I started talking to Ryan and I could feel the energy that he had and the passion he had for the sport.” Determination & Self Belief: Newman entered every race with a belief that he would win it. His determination proved to be incredible which proved him a winner against all odds e.g. He had a crash in Daytona 500 and he was saved. At Talladega Super speedway a cut tire sent his car crashing against the wall and he was unhurt. In response to the dangers involved with his passion for the sport; he simply replied that such incidence make him even stronger for future! Using the fundamental ideas of content theories of motivation, explain Ryan Newman’s Racing success The Self Actualization need has helped Ryan Newman become successful in his racing career. Since he was a racing passionate right from childhood and with his aptitude towards automobile engineering he tried his best to be on top of the sport he loved. Not caring about the hindrances that often posed while he tried had to achieve his goals. This included the danger or injuring himself while racing and also negative criticism of being a cheat by his fellow racing competitors How can the expectancy theory of motivation help in understanding Ryan Newman’s passion for racing? The expectancy theory says “An individual will act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual” Since Newman was highly passionate towards racing sport he pursued his college degree in mechanical engineering with an intent of gaining an advantage in his racing career-his passion he crafted a plan of study that made him to focus on vehicle dynamics-vehicle design and material strength etc that would complement his interest in racing How can the goal-setting theory of motivation help in understanding Ryan Newman’s passion for racing? Goal setting theory says: Specific goals increase performance, and difficult goals, when accepted, result in higher performance than easy goals. This theory can well be implemented on Ryan’s passion for racing on two different occasions. 1. When he joined the Penske Racing team and said that joining a team of familiar minds would help him achieve his goals. 2. When he faced dangers while pursuing his racing career which could hurt him and might end his career as a racing sport. He simply shrugged off such dangers by saying that such life threatening accidents that he often goes through while racing only motivates him to perform better in future events. Use Equity theory to explain the various reactions to Ryan Newman’s Win at the Kansas 400 in early October 2003. Equity Theory can well be witnessed when driver Jeremy Mayfield, who came third in Kansas 400 in early October 2003 and questioned how Newman could go through the 79th Lap without refueling as it is imminent after 78th lap for most of the fellow drivers. This querried the spirit in which Ryan Newman had played the racing event. Similarly Bill Elliot who led on 115 laps of the race was upset about the same situation and refused to and refused to attend the post race news conference. Read More