Strategic Management and Strategic Competitiveness
Donald E. Baker
Dr. Nicole Ortloff
BUS 499-Business Administration Capstone
Oct 17, 2014
Mr. Richard Teerlink age 59 joined Harley Davidson in 1981 and was elected to the board of directors in 1982. In 1988 he was appointed President, and he was named Chief Executive Officer in 1989. Mr. Teerlink is also on the Boards of Directors of Johnson Controls, Incorporated and Snap-On Incorporated (Rethinking Leadership). Mr. Teerlink has been the leader in developing a value-based culture at Harley. Shareholder Lawsuits: In re Harley Davidson, Inc. Securities Litigation was a consolidated shareholder securities class action lawsuit filed in the United States District Court for the Eastern District of Wisconsin. On October 8, 2009, the judge granted defendants’ motion to dismiss, and the clerk of court entered judgment dismissing the consolidated lawsuit. No appeal was taken from the final judgment and the dismissal of the case became final. Subsequently, on March 18, 2010, a group of individuals who appear to be inmates in a federal correctional institution filed a motion to intervene which was immediately dismissed by the District Court because judgment had already been entered. On April 5, 2010, two of the individuals filed notices of appeal of the dismissal. On May 27, 2010, the Court of Appeals for the Seventh Circuit dismissed the appeals for failure to pay the required docketing fees. The Company must maintain its reputation of being a good corporate citizen and treating customers, employees, suppliers and other stakeholders fairly. The Company believes it has a history of good corporate governance. Prior to the enactment of the Sarbanes-Oxley Act of 2002 (the “Act”), the Company had in place many of the corporate governance procedures and processes now mandated by the Act and related rules and regulations, such as Board Committee Charters and a Corporate Governance Policy. In 1992, the Company established a Code of Business Conduct that defines how employees interact with various Company stakeholders and addresses issues such as confidentiality, conflict of interest and fair dealing. Failure to maintain this reputation may have a material adverse effect on the Company’s business and results of operations. The Resource Based model of above average returns is grounded in the uniqueness of a HSs internal resources and capabilities. The five step model describes the linkages between resource identification and strategy selection that will lead to above average returns as shown in the figure above. Companies should identify their internal resources and assess their strengths and weaknesses. The strengths and weaknesses of company resources should be assessed relative to competitors. Companies should identify the set of resources that provide the company with capabilities that are unique to the firm, relative to its competitors. The company should identify those capabilities that enable the company to perform a task or activity better than its competitors. Companies should assess or determine the potential for their unique sets of resources and capabilities to outperform its competitors in terms of returns. Determine how a company's resources and capabilities can be used to gain competitive advantage. Locate and compete in an attractive industry. Determine the industry that provides the best fit between the characteristics of the industry and the company's resources and capabilities. To attain a sustainable competitive advantage and earn above-average returns, companies should formulate and implement strategies that enable them to better exploit their resources and capabilities to take advantage of opportunities in the external environment than can their competitors. Vision Statement: Harley Davidson of Montgomery will become the premier Harley Davidson dealership in the Southeast through continual employee education and...
References: OECD (2005), Trade and Structural Adjustment, forthcoming. The full study will be published in late May 2005. For further information on how to obtain a copy, including individual case studies, contact firstname.lastname@example.org or visit www.oecd.org/ech.
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