Foundation to Business Strategy

Assignment

Harley-Davidson, Inc.
 Few Important Details
• Pair Assignment (Regular Students)
• Weighting (50%) (Report 70% + Viva 30%)
• Mandatory to pass both components.
• Report Form (Introduction, Literature Review,
Analysis, Conclusion and References)
• Word Limit – 2500 words (+/- 10%)
• Online Submission on MOVE
• Avoid Plagiarism
 Grading Criteria
Criteria Weighting %

Information Search: Relevant Literature Review 25

Understanding of Issues: Analysis of various environmental factors

that are associated with the industry in the case and relevance of these 20
factors with theory.

Analysis: detailed discussion of the tasks involved. Critical 35

awareness, valid interpretation and suggestions

Presentation: Clear introduction, logical structure, reference to 10

appropriate theoretical background, illustrations, good use of the
limited number of words allowed, clear layout, overall organisation of
the report.
Referencing: Adequate use of references, Harvard Style referencing 10
used.
TOTAL 100
 Company Overview
In 1903, what was to become a legendary
motorcycle company was formed in the Davidson
family’s backyard. The “factory” in which they
worked was a 10- by 15-foot wooden shed with the
words “Harley-Davidson Motor Company” scrawled
on the door. The Davidson brothers, William D.,
Walter, Arthur, and William S. Harley, made their
first motorcycle there.
 Company Overview
• During World War I, Harley-Davidson supplied the
military with 20,000 motorcycles. During this time, there
were major advancements in the design of motorcycles,
and Harley was the leader. However, a decade after the
war ended, the Great Depression devastated the
motorcycle industry.
• Only Harley-Davidson and Indian survived through the
1930s. Harley also contributed to the successful U.S.
efforts in World War II, during which it supplied more
than 90,000 motorcycles to the military. After the war,
demand for motorcycles exploded, and Harley-
Davidson added facilities in Milwaukee in 1947.
 Tasks Involved
The tasks involved in the assignment are

• A review on the need and importance of environmental

analysis by organizations using relevant academic
literature.

• An evaluation of the trends in the macro environment that

would influence the US automobile sector using PEST
Model.

• Analysis of the competitiveness of US two-wheeler

automobile industry using Porter’s Five Forces Model.

• Analysis of the SWOT for Harley-Davidson, Inc.

 Task : A review on the need and importance of
environmental analysis by organizations using
relevant academic literature

• Significance of analyzing both internal and external

environments.
• Refer to good quality academic journals.
• Use Google scholar, Masader on MOVE.
• Consider latest ones(2010and late).
 Task : An evaluation of the trends in the macro environment
that would influence the US automobile sector using PEST
Model

• How political conditions such as government

regulations and other factors affect the industry? Are
they favorable or not?
• How do economic conditions such as recession, GDP,
inflation affect the industry?
• How social factors pertaining to the customers such
their income distribution, lifestyle changes and other
factors affect the industry?
• How do technological factors affect the industry?
• Summarize whether favorable or not favorable.
 Task : Analysis of the competitiveness of US two-wheeler
automobile industry Industry using Porter’s Five Forces Model

• How is the threat from new entrants to the players? How is

the expected retaliation to the new entrants from the
existing players?
• How is the bargaining power of the customers?
• How is the bargaining power of suppliers?
• What are the substitute products? How is the threat from
these substitute products?
• How is the intensity of competition in the industry? Is it
price-based or non-price based?
• Once these factors are analyzed and consolidated, the
attractiveness of the industry should be identified.
• Summarize whether the threat is high moderate or low .
 Task : Analysis of the SWOT for Harley-Davidson.

• What are the strengths (internal) of Harley-Davidson Inc.?

• What are the weaknesses (internal) of Harley-Davidson
Inc.?
• What are the opportunities (external) available for Harley-
Davidson Inc.?
• What are the threats (external) faced by Harley-Davidson
Inc.?
 Presentation & Analysis
• The assignment should be in a report format
and should include all the four tasks
mentioned above.
• All the tasks should be well addressed and
appropriately supported by relevant
Literature Review.
• It must be original and creative.
 Structure of the assessment
Table of Contents
1.Introduction
2.Literature review on Environmental-Analysis
3.Evaluation of Macro Environment in U.S. Auto Industry
3.1-Political factors
3.2-Economic Factors
3.3-Social Factors
3.4-Technological Factors
4.Evaluation of competitiveness of U.S. Auto Industry
4.1-Threat of New Entrants (Score-Low)
4.2-Bargaining Power of Buyers (Score-Medium)
4.3-Bargaining Power of Sellers (Score-Medium)
4.4 -Threats of Substitutes (Score-Low)
4.5-Extent of Existing Rivalry (Score-High)
5. Application of SWOT on Tesla Inc.
5.1-Strengths
5.2-Weaknesses
5.3-Opportunities
5.4-Threats
6.Conclusion
7.References
All the Best