Business Unit Analysis
Directions: Create a Feasibility Study for Harley Davidson using
the following outline:
Part I: Differentiation Strategies
The analysis of current strategy and competitor analysis you
conducted last module impressed the senior vice president. She now
needs you to delve into the brands and analyze them by conducting a
business unit analysis and presenting your findings in a three-part
PowerPoint presentation.
Research the Harley-Davidson (H-D) Web site for each brand, and
review the annual report for relevant details of the size, scope,
target market, services and amenities, and other salient points of
differentiation. Include these details in Part I of your PowerPoint
presentation.
From the research and analysis of the business units,
identify:
A description of each brand or business unit that provides a
clear picture of the brand and its place in the overall portfolio
of Harley-Davidson.
The target market of each brand.
How the brands are alike and how they differ.
A preliminary analysis of any gaps that exist in the portfolio
that might lead to opportunities to add to the brands.
Your analysis of possible merger / acquisition / joint venture
possibilities and what would be achieved or accomplished through
the merger / acquisition / joint venture.
Part II: SWOT Analysis
Perform a SWOT analysis for Harley-Davidson and include this
information in Part II of your PowerPoint presentation.
Based on the internal analyses of the SWOT analysis; assess the
functional areas, resources, capabilities, and strengths H-D
possesses. Please be sure to cover the following functional areas
in your assessment:
Marketing: New product development, integrated marketing
planning, marketing communications, and building customer
loyalty.
Operations: Quality, service, and consistent execution.
Human Resources: Hiring, training, developing talent, and
performance planning. Avoided law suits and bad PR due to its
hiring practices. Is ethical in its HR practices.
Executive Leadership: Industry knowledge and experience, vision
about where the industry is heading, and strategy execution.
Supply Chain Optimization: Strategic sourcing of input, vendor
management, integrated IS, and joint forecasting with
suppliers.
Corporate Responsibility and Ethics: Concern for corporate
citizenship and the environment. Present any potential ethical
concerns as well.
Safety and Quality: How the motorcycle industry is dealing with
safety and quality issues.
Part III: Growth and Profitability Strategies
In addition, the executive board is interested in your ideas
about bold strategies for the future. The strategies you recommend
will have to contribute to growth and profitability, as outlined in
the Annual Report.
You will want to pay special attention to exploring vertical
integration, strategic alliances, and the internal growth of new
brands entering new geographic markets, and/or additional
acquisitions.
Consider the following:
Is Harley-Davidson, Inc., (H-D) competing in the right
businesses, given the opportunities and threats present in the
external environment? If not, how can H-D realign its
diversification strategy to achieve a competitive advantage? This
may include additional diversification to take advantage of
opportunities such as further vertical integration.
Is the corporation managing its portfolio in a way that creates
synergy among its businesses? If so, what additional businesses
should it consider adding to its portfolio?
After you have reviewed the growth and profitability strategies,
create a list of possible strategies to present a full range of
ideas.
Part III of your presentation should include your complete
list—all potential ideas—for the senior vice president. This is
your chance to be creative.
Next, rank your ideas from best to worst. To do this, keep in
mind several things such as fit with current strategy, resources
and capabilities, and difficulty of execution.
For each of your top five ideas, add the following:
Briefly describe the strategy.
Why you picked it as one of the top five.
Think about such things as:
Does the strategy build on current competencies and foster
horizontal relationships among brands? In other words, what can be
leveraged or shared? What are the pros and cons of this
strategy?
Your PowerPoint Feasibility Study presentation will also include
slides pertaining to the following assessments:
Part I: Identification of size, scope, target market, services,
amenities, and points of differentiation.
Part II: SWOT analysis that includes marketing, operations,
human resources, executive leadership, supply chain optimization,
corporate responsibility, ethics, safety, and quality.
Part III: Growth and profitability strategies, including your
top five strategic ideas and support.
Submit the PowerPoint Feasibility Study presentation to the
senior vice president so that she can review the alternatives and
provide you with feedback about your ideas.
