Harley Davidson

You might also like

Download as pdf
Download as pdf
You are on page 1of 10
Harley-Davidson, Inc. — 2009 Carol Pope and Joanne Mack Alverno College HOG worm harley-davidson.com Inthe int al of 2010, Hirey-Davdson opened i fst five dealerships in Idi. High | inp ails of 90 percent on motrecles historically kept Haley ot, but the growing ‘oper le in India now warrants Harkey opeing dealerships the asey-Davdson announce in Api 2009 tat twill shed an abional 30 to 400 hort job inthe 2009-2010 timeframe, on topo he 1,100 obs ic reviusl planned ‘lmiaate during that perio, Its stock devin from 4805 por shar 09.78 per share the time period March 8, 2008 to March 7, 2008, although a recent suze put he stock prise a 194 a8 of Api 27, 2009. Haley i closing several faites and as sted Iotreyle males decreased 13 percent ring the fist wo months of 2009. However, Harley has eotinued to remain profitable troghou the economic xn, albough second quer 2009 profs declined 91 percent Fo that que, Hare's US. sles fll 5S percent wile now U.S ales dropped Ts percent, ‘Any serogs discussion about Haley Davidson includes the power ofits bran Mention of Hare eeses vison of raed individuals, American fon and passion, ‘The passion nso dep tht many esos and admirers soca Hare abo tex ‘hat passion. There ae oo my eorpraons hat inspire at Kind of following. How ‘many Honda Kasai tatoos ave Jo een onde arms? Witt about Hay ‘hat sit pt rom is competitors, and eve rom mega successful compares hat ae ‘is competi? The nyse is magical rey’ ere symbolic ofthe Amaican dea, Harley's workers and customers ‘elt nd fad ivation in his American rem tht beam area. An extension of this concep of “ai” lo hy Hare's sucess. The HOG (Haley Owners Group) isa ordeal of Hse owners ais milion song. When oe purses Hak, ‘neces par of amily foner that ies eter npr get noc ‘ec every cone Indeed, te Hsey Web ste beckons ers sre the adhere” ‘sie fom the share experience, many Harley riders ese akin the ack rads a the brty of scenery wigue 0 ec loa This especialy tue in Hays hometown of Mian, where ders wait imptiealy forthe spo elt so that hey an experience the year solo inuagral ride, Nowa slo badge of Hare's success. is nie "puto Potato pa” sud ced by i famous tin egin stil Beard in he rumblings otorjles on the rnd toa, and its legendary ying, averse by “Wile G” Davison, himself an co, bs created continuity over he decals. or these reasons and move, Harley reins Ameria on moe than 10 years fer formation. Harley's History: The Building of a Legend Hare's Website announces 1 onie vistors th this "Whete Dreams Come Tre” and beckons readers 0 "ointhe Fanily You've Always Wanted” The myxtgue of Harey begin with wo amie, he Hal andthe Davison, who al Bg eas bck the tum ofthe wen century i Milwaukee, Wiscosin. In 193, what wast become a legendary roryce company was fomed inthe Davidson familys backyard. The “Yc” in wich they worked was 10- by 15-0 wooden she withthe Wouds “Harley-Davidson Motor Company” scrawled on the doo ‘The Davidson brothers, Wiliam D., Walter, Arh, nd Willan. Hare, made ttf smotreete there Daring World War, Harley-Davidson supple the military with 20.00 motorcycles Dring this time, there were major advancements inthe deg of motreeles and ey asthe leader However. deca afer te wat ended, the Gret Depression dcr te motoreycle inst. Only Harley-Davidson and Ina survived though the 190s cep so conrbted to the successful US, efforts in Weld War during which t oppicd ‘more than 90,000 motorcycles to the military. After the wat, demand for msoneeles exploded, and Hriey-Davison aed facilis in Milvashoe in 1947. Aer competion Indian closed in 1983, Harley-Davidson was the sole America tncle manfacret for decades Hare ended family owner in 1968 witha pbc offering. Only four years. Ise, the company merged withthe Amarican Machine and Fundy Company (AMM, © longtime producer of leisure pred. By the erly 1970s, the Japanese were importing huge numbers of lower-peced rotreycls int the United Stats. Japanese fms wet able o capture alge pron Hariey’s marketshare. Because it had expanded proton so quickly, sly was aso ‘ving quality problems n 1981 13 of Hare's enor executnes purchased the busines ‘hom AME In 1986, Harey-Davitson, In. became plicly ld fr te fit tine since 1969. That se year, ureyregaiad its plea the op othe U.S super heayweight ‘make, beating out Hoda, Harey was ised onthe New York tock Exchange in 1987, nds make sare conind to gow, "Noable events in the firs decade of the twenty-first ceotury for Hatley inca eebration ofits 10th year aniversary in 200, and 15h n 2008, ante open the Harley-Davidson Museu in Milwaukee in 208, Acording to Hal, museum projec ‘was designed io deliver a unig experience that builds strengthens bonds between ders and Harly-Davidon, an enhances the band among the ples ge, The faci also icles x restaurant and caf, a etal oe, and spoil event pac. Also taking place in 2008 was Hare Davidson's aeuision of MV Agus, Throughout hs fist decade othe ‘weny-firs century, Harley-Davidson contnis to be highly regard inthe hilanhory sxca, Hatley might be test known for is asociaton with the Muscular Dystoph) Asocaton sing upward of $80 milion forthe chat The Harey-Davison oats focises its giving on education and commanty eitalzation, ant alo sopprts asst culture, eat ints, and he environment. Mission Statement, Vi Hatley’ mission statement n Statement, and Values ‘We fll dems hog te execs of motrin yfviding © moto) ls andthe gel pic an expanding eo tcl, bane prc sa Servis inseam epn “This pilospty is what helps set Hatley apa fom is competitors. Acconting to Hare, it tes more ha jut building and selling notereyces oil he reams fi ‘esiomers. Iakes unforgetable expences, nd Hare dedicated oercaing exper ences and developing velatonships wth al fits tkcholers Harley belive that what Set it apart fom the crowd and why its rand stents leprdary. Harley's Vision samen ary Davin i an aon etd net compuy eden ts comm ment to conan improves maly Benet ean with aks (cones, spp, employees, sucholdes. oxernment, and sok). Hal Davin bles te hey tse flan ahem eo he empowement fal eps os al add snes. arly also emphasizes he importance ofits ive aed Vales: (1) Tel the Tah: (@) Be Fairs (3) Keep Your Promises (4) Respect the Individual: and (3) Encourage 468 CAROL POPE AND JOANNE Mack 41 Harley-Davidson, inc. Organizational Structure Executive Officers Intell Curiosity, Accorng to Har it Vales represent the at f how itn is business. The Values guide hei actions and Serve as the amwork forthe decisions apd Eonirineton is employees make at every lve ofthe Company Harley-Davidson tts that te Vals are more han jas st of “Teo good” buzzwords they weet how Haley tmpoyees reat to each oer and to al oftheir stakeholders, nciing ester, eles, and suppliers. Organizational Structure Asin i Exhibit Haley's rpasizatna seat consis of excep ide nd servic pein, who vee ky farce. These ce rents tre uenbecs of «pny lone hn eS Seo: Lenco Gis Toe See {aktip Group oni of road gop of eas epesening ie uncon So i ‘idlin the Motor Compas, Bel, MV HDFS, ad Hare Davison. The group mess ‘er tne each ear hve a logue wih he eects alice (CEO) an © stare bss infomation Alton tis sou is oa dvison- making bd tre bes and case crite courprie wide ses chalnges ouput he ea The CEO of Hare detemines mene ine Sele Lees Go. Cerna members of be Sei Laehip Group aaa mene ofthe Leadership snd Sttegy Cour which const ofthe CEO of Hay Davin andthe presen of the Motr Company, Burl an HDF, ei fer of be Mtr Copan ett vice preside manafcring sein vie president, product deslopment nd senior ce president an bie! mchting offer and cern ther Hale-Dvison eects (crecuive vce president and eit financial offer execulve vce pein, chet trziniratonaltrasformation oer an exes ie pendent, ene coun! Ad seca Harley's Business Segments arey-Daidson operate in wo segments () Francia serves nd (2) mesos and related products, Financial Services The financial sevies semen includes the group of compan doing business Hay Davidson Finacial Services (HDFS), which provies wholesale an eal Raancng and. | sm agent, provides surance and iasrance slated popan primal t Haley Davie ‘nd Buell dealers and tetra customers, HDFS conducts business principally in he United States and Canada. HDFS's 2008 operating income decreased 61.0 percent. In February 2008, bllonsire Waren Bute’ Berkshire Hathaway ivested S300 mls in Harley-Davidson. Harley says Berkshire and Harleys biggest shareholder, Davis Solecad Adviser, LP, are each commited 10 buying $300 milion in senior wesc (ASE 17 « HARLEY OAVIOSON. NC — 2008 rote, du in 2014 The money wil be usd to support Hay’ nance company an its ‘ongoing motorecle ending activites Motorcycles and Related Products ‘The motreyele and related fous segment of Harley-Davidson ince (1) Pets & Accesories (PA): 2} General Merchunlse (3) Liensing: nd) Motoryces. The major PRA predicts are replacement prs and mechanical nd conte accesses, Wolivise PAA netrevense compris IS percent, 15.2 econ an 149 percent of et reve in the ‘Mosoeycls sient i 2008, 207, and 200 respecte. Wolwide Geral Meche sutrevene, wich clos apparel nd collects, compel 6 percent 5.3 percent an 448 pect of ct revenue inthe Metres segment in 2008, 207, and 206, respecte ‘Wi reguing to censng te compuny crete an awareness ns iit brand, arley-Davison, among seasons andthe nonrding pblic trough a wide range of products by censing the ame “Harley-Daviion an ter aa aby the com my. Licensed pods inclode Fb, ewekry, smal ether gods and toy. Aough the nso of licensing atv occurs nthe Unite States, Husky continues o exp hee cites imernational markets, su a it Tn in 2010, Royal revenasfom lens, ined in Motoreyles segment net revenve, were 648.4 millon, $460 elon and S855 lon n 208, 207, a 2006 spectively Harleys are sold under te brands of Harley-Davidson Motor Company, Buell “Moworeyele Compan Cagiva. and MV Agusta (which was cgured by Harley-Davidson | 2008), The Motoreyele segment designs, manufacture, and sells at wholesale primary heavyweight (engine diplacememt of 6S14ee) touring, cist, and performance rmotoreels.Harey-Dividhon, which she only major American motorcycle manuf: tore, conducts business globally, with sles primarily in North Americ, Europe, AAsuPacifc, and Latin America, (See Exhibits 2 and 3 fora summary of Harley's motreyel shipments by product in and by region.) Harleys wordwde mooryces sls generated appeosimaely 80 percent ofthe oa score dhe Moret Semen rng each of te Yes 208,207, ahd 2008. "The company manufactures five fares of mneycls: (1) Touring, (2) Dyna, (3) Stal) Sports, and) VRSC. The engines range in se from 8's to 1803's Harley's heavyweight class of motorcycles is divided into four segment: tind, EXHIBIT 2 Harley-Davidson Motorcycle Shipments by Product Line* Motoreyce Unit shipments and Net Revenue ‘Gezeass) Motoreyce Unit Shipments 2008 ncease Change United States 26309 8.0% 0523) sa Invention 11m Boe $208) 2598 80m 3 Harey-Davidson ‘Motoreyee ats 303479 100% —S80619 100.0% ATMO) ‘Touring motoreele units Orgs? 336% 11407 -Mse (2489) 107) Custom motreyele wis (Dyna, Sofa VRSC.and CVO) 140908 645% MASON 4RIH = GSM) = S) Sporster motreycle units mass 2008 = ROW Se Lass) Harley-Davidson Motorsyete us 303479 100% — S019 TODO — TAH) (RY Buell motreyele unis Buy H3t3 106 13.95 “Te leis whee merce utp he Menno ae 8 eso tp 304 Hite Deri ene eae of 78 2p fy The com ‘tigen S08 ria ep epee he hg commen ee con vie Seee ‘ssi 2\D 210 foe ie sn ao nS a en ped Ta oy opts nce he ig 8 sn eee if abel mmarated nse wh cape lt 4170. CAROL POPE AND JOANNE MACK EXHIBIT 3 Harley-Davidson Motorcycle Shipments by Region arly Davison Motoreyle Reta ales 9 Heaeyweight (6514c0 Decease) 2008 2007 Increase sachange ‘Noni America Region United States 2is930 asim 2s) (30% Camda 1602 14779 173 7 ‘Total Nom America Reson Hasasi 20381 re Europe Region (Inlades Middle ast and Aca) Europe 40725 38866 48 Otter 4317 336 236 “etal Earope Region as0R 2a 65 ‘Asin Pcie Region Japan 6st 13.68 09 6s ones 10.395 9689 08 98 Total Asin Pacific Reon 25.249 Bast 1795 13 Lata America Region 8039, sa67 230 470 “Total Woldide Real Sales 313.09" ure e.005) oye {2 Om ome mt ges hn oan mp noma poi y Hor Dt al anconpaey (Secure compny cnet os a cmsmig ne wero as ema jet ven, Oa (tua rEg ce Ail, Demo PFs Camu, Ge ay Neha, Nore. Pl Sun, Ses, ‘Sle be Usted Ro formance, touring, nd caniom. The standard segnent emphasizes simplicity and cos. fd the performance segment enphasies handing and acceleration. The tong Samet {orthe company foie on comfort or lng-dstance wel. Haley-Davidson poner this ‘amen ofthe heayyweight markt Harleys sim segment pivs ours he opportunity to cunonize the ies. Linsted-eton, for custom mnsorjcles ae sll thro is ‘Gastom Vehicle Opention (CVO) progr. Motryces sod thro the CVO program ar ‘alae in ited quantities and ofr iq ears, pun schemes and accessors. Boel metre products emphasize innova design, responsive align oe al peomance, Bas ganufaares for fais of motoeyeles (1) Spike, (2) Stet (G) Advent, nd) Blt, The Blast errs a small 4820 single-cylinder engin el formany ew ners MV motosjlepodicts emphasize existe desig ad high peri ‘mance, Boel actin nthe ring community ad ans plc rom thse fons, ‘The heavyweight (6Sl+

You might also like