Internal Analysis

Topics: Harley-Davidson, Motorcycle, Harley Owners Group Pages: 20 (5882 words) Published: September 16, 2006
Harley-Davidson Inc.
Internal Analysis

Group Members
Janneke Kanis
Christopher Klaesener
Jeroen Kwint
Annemiek Rensing
Hanqing Zhou

As this was the first assignment we had to complete for the SMA class, we felt the need to put some additional information on top of the Internal Analysis. The purpose of this report is to give an insight on the internal factors that influence the performance of Harley-Davidson. In the first chapter our group decided to include a company history and a product description. Following that is the actual internal analysis. In addition, it needs to be said that we thought about including a SWOT analysis, but decided to include it in the External Analysis. For a SWOT analysis to be truly of value one also needs to look at external factors. Last, the financial analysis is first and foremost not complete. We only had a look at the information that was relevant internally. Once we will proceed to write the external analysis we will finalize the financial analysis. Table of contents

1Background information3
1.1History and General Facts3
1.2Products and Services4
2Internal Analysis7
2.1Mission Statement7
2.3 Mckinesy's 7 S Model8
2.3.3Shared values9
2.4Financial analysis14
2.5McCarthy's 4 Ps18
Appendix A: Product Description of the Harley-Davidson Motorcycles22 Appendix B Retail Sales of Harley Davidson25
Appendix C: Relevant Information used for Graph 1 and 226

1Background information
1.1History and General Facts
The legend started in 1903, a wooden shed in Milwaukee, when three young men used their hands to build a motorcycle. They were inspired by the development of a motorcycle with an integrated engine. At the beginning, the motorcycle was not able to ride uphill and even had problems with pulling itself with its two-horsepower engine. After several modifications, the first Harley-Davidson was born. The top speed could reach 25 miles per hour. Milwaukee residents were impressed by Harley and Davidson's work, and so soon after those two neighbors started to go into production. At the end of 1903, three motorcycles had been sold.

From 1905 till now, Harley-Davidson has won many races, especially in the early and mid time. With its edge in racing and continuing new design, the company and its products have become very popular. Harley-Davidson experiences a huge expansion as they were the sole provider of motorcycles in both World War I and World War II.

In 1920, it had 2,000 dealers in 67 countries. With its powerful image and design, Harley-Davidson had survived the Great Depression of 1930s and was one of the two remaining motorcycle producers after that. The other company that also survived was Indian. When Indian was closed down later in 1953, Harley-Davidson became the only motorcycle manufacturer in US.

Because the company kept winning races and the demand of Harley-Davidson's motorcycles had increased to a tremendous point, Harley-Davidson was bought by the American Machine and Foundry Company (AMF) in 1969, a manufacturer of machinery, sporting goods, and automobiles. In order to meet growing demand, AMF opened a new plant in York and enlarged its assemble line. Unfortunately, because AMF kept focus on increasing the quantity to meet the demand quality issues started to arise. This resulted in call-backs and there were incidents where half of the manufactured bikes had to be repaired before leaving the factory for the first time. The reputation of Harley-Davidson was seriously hurt.

In 1981, 13 Harley-Davidson executives brokered a leveraged buyout of the company, which was funded by Citigroup . Gradually, Harley-Davidson won back its position and its market share. In the middle...

Bibliography:, accessed the 7th of September, 2006, accessed the 7th of September 2006
"Milwaukee-Based Harley-Davidson Rides into Future with Baby Boomers Abroad." Milwaukee News-Sentinel August 5, 2003
Microsoft Encarta, search word "Harley-Davidson"
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