Harley-Davidson: External And Internal Analysis
Assignment 2: Harley-Davidson: External and Internal Analysis
Harley-Davidson: Business Overview for New Planning Team Members
Instructions for this assignment: Perform all of the elements listed below.
This assignment has you complete two parts of a strategic business plan. To see how those parts fit into a full business plan, click here for a strategic business plan outline.
Part I – Analysis of the External Environment
As part of the Strategic Business Plan, you have been asked to:
Identify and analyze the major driving forces for change in the external environment of the motorcycle industry.
Analyze the dynamics of competition using Porter's Five Forces Model of Competition. Correctly assess the dynamics of competition.
Provide at least three statistics about the size of the motorcycle industry such as revenue, growth rate, number of units sold by manufacturer/country, etc.
Summarize the strategic issues firms in this industry face and identify their biggest threats.
This section should be titled "The Analysis of H-D's External Environment."
Part II – Internal Environment Analysis
Financial
Gather the financial information necessary to do a complete ratio analysis and the Balance Score Card (BSC) key metrics information.
If you were going to create a BSC, what would be the key metrics you would measure in each of the four BSC areas:
Financial
Customer
Internal Business Process
Learning and Growth
Perform a ratio analysis using H-D's five-year financial performance. Interpret the meaning of the ratios and financial performance.
This section should be titled "The Analysis of H-D's Current Strategy: Two Views." Be sure to include the ratio analysis. You may also include other graphics to support your narrative.
Competitors
Based on your analysis, you must decide which two competitors present the biggest competitive threat to H-D.
Perform a financial ratio analysis for the competitors after looking at trends in financial performance over five years, and compare the trends to industry averages.
Be sure you have a clear ranking of the industries' competitors.
This section should be titled "Competitor Analysis." Be sure to include the financial ratio analysis. You may also include other graphics to support your narrative.
This assignment should be 4 to 8 pages in length.
Submit your Word document to the Submissions Area by the due date assigned.
Assignment 3 Grading Criteria Maximum Points
External environment analysis: driving forces, dynamics of competition, and at least three statistics about the size of the industry. (15 points)
Summarized strategic issues faced by the industry and identified their biggest threats.(20 points)
Performed a financial ratio analysis using H-D's five-year financial performance and interpreted the ratios—see the text for which ratios to perform. Concluded how well the firm's strategy is working.(20 points)
Created a hypothetical BSC for H-D after selecting which measures you believe are important in the four areas: serving customers, improving processes, learning, and growth and financial performance.(15 Points)
Performed a ratio analysis of the financial performance of two competitors and compared them to H-D. Developed a Word document entitled "The Analysis of H-Ds Current Strategy: Two Views," which includes analysis of your findings.(15 points)
Developed the documents that include analysis of your findings. Justified ideas and responses by using appropriate examples and references from texts, Web sites, and other references or personal experience. Followed APA rules for attributing sources.(15 points)
value Chain Activities Primary Value Chain Activities
? Inbound Logistics: All activities designed to receive warehouse raw materials and bring the raw materials to the manufacturing process comprise inbound logistics. For example Dell Computers manages inbound logistics by ensuring that trucks from its suppliers wait in the parking lot to deliver components to the production line as needed, virtually eliminating the cost of carrying inventory.
? Operations: This refers to the process of transforming raw materials into finished
goods and services. For example Southwest Airlines (SWA) uses a human resources philosophy based on hiring for attitude and providing the best training to its employees. This philosophy ensures that the operations of the business are performed by people who exude the SWA cultural vibes and deliver fun, friendly, and efficient services .
? Outbound Logistics: The warehousing and distributing of finished goods comprise outbound logistics. For example Wal-Mart specializes in warehousing and distribution. Its current emphasis on managing logistics includes implementing radio frequency identification tagging to track inventory of its top suppliers.
? Marketing and Sales: The identification of customer needs, the designing of products,
and the generation of sales comprise marketing and sales. For example Apple recently launched three versions of the popular iPod and transformed the music industry with itunes. Many other market players are copying the iPod.
? Service: This refers to the support and service of products and services after they have been sold to the customers. For example, in 2005, Lexus automobiles received three JD Powers awards — a gold standard in customer service — and numerous other awards for exemplary customer care.
Secondary Activities: These support the primary activities and include:
? Firm Infrastructure: A firms infrastructure consists of organizational design, control systems, and company culture. For example Google has a unique culture that says, “Never settle for the best.” "The perfect search engine," says Google’s co-founder Larry Page, "would understand exactly what you mean and give back exactly what you want."
Given the state of search technology today, that's a far-reaching vision requiring research, development, and innovation to realize. Google is committed to realizing the goal. Though acknowledged as the world's leading search technology company, Google's goal is to provide a much higher level of service to those who seek information, whether they're sitting at a desk in Boston, driving through Bonn, or strolling in Bangkok. Google has persistently pursued innovation and pushed the limits of existing technology to provide a fast, accurate, and easy-to-use search service that can be accessed from anywhere.
Page 2 of 2 Value Chain Activities
© 2006 Argosy University
? Human Resources (HR) Management: It refers to recruiting, staffing, training, developing, evaluating, compensating, and all other people-related functions. For example, in 2005, Fortune Magazine ranked Genentech — a $4.6 billion biotech company — as the Number 1 Best Place to Work. Genentech received the acknowledgement for creating a place to work where each person is a “…valued member of a cancer-fighting team,” and has a great time while at work. In fact 95 percent of the workers are shareholders, and they have made large profits from the soaring stock.
? Technology Development: The technology needed to support value creation for customers comprises technology development. For example, in 2005, the American Business Council gave UPS the award for being the most innovative company in its use of technology in e-business. UPS is the world’s largest global transportation company, offering the most extensive range of e-commerce and supply chain solutions for the movement of goods, information, and funds. UPS serves more than 200 countries and territories worldwide.
? Procurement: It refers to all sourcing and purchasing of key inputs, raw materials, or other key resource. For example, Access Business Group won the 2006 award for Global Award for Supply Chain Excellence. The recipient was selected by the Supply Chain Council as the organization that is deemed to have made the greatest contribution to demonstrating or advancing the supply chain management body of knowledge within the preceding year through an implementation activity, research, product or methodology development, or academic research.