Strategic Audit of Harley Davidson Inc.

I. CURRENT SITUATION 3

A. CURRENT PERFORMANCE 3

B. STRATEGIC POSTURE 3

1. Mission & Objectives 3

2. Strategies 4

3. Policies 4

4. Summary 4

II. CORPORATE GOVERNANCE 4

A. BOARD OF DIRECTORS 4

B. TOP MANAGEMENT 5

III. EXTERNAL ENVIRONMENT: OPPORTUNITIES AND THREATS (SWOT) 6

A. SOCIETAL ENVIRONMENT 6

1. Economic 6

2. Technological 6

3. Political-legal 6

4. Sociocultural 7

B. TASK ENVIRONMENT 7

1. Threat of new entrants 7

2. Bargaining power of buyers 7

3. Threat of substitute of products or services 7

4. Bargaining power of suppliers 7

5. Rivalry among competing firms 8

6. Relative power of unions, governments, special interest group, etc. 8

C. SUMMARY OF EXTERNAL FACTORS 8

IV. INTERNAL ENVIRONMENT: STRENGTHS AND WEAKNESS (SWOT) 10

A. CORPORATE STRUCTURE 10

B. CORPORATE CULTURE 10

C. CORPORATE RESOURCES 10

1. Marketing 10

a. Product: 10

b. Price: 11

c. Place: 11

d. Promotion: 11

2. Finance 12

3. Research and Development (R & D) 13

4. Operations and Logistics 13

5. Human Resources Management (HRM) 14

6. Information Systems (IS) 14

D. SUMMARY OF INTERNAL FACTORS 15

VI. ANALYSIS OF STRATEGIC FACTORS 16

A. SITUATIONAL ANALYSIS 16

B. REVIEW OF MISSION AND OBJECTIVES 17

1. Are They Appropriate & How Should They Be Changed? 17

2. Damage Control 17

VI. STRATEGIC ALTERNATIVES & RECOMMENDED STRATEGY 18

A. STRATEGIC ALTERNATIVES 18

1. Revision of Objectives 18

2. Alternative Strategies 18

B. RECOMMENDED STRATEGY 18

1. Selected Strategic Alternatives 18

VII. IMPLEMENTATION 19

A. PROGRAMS 19

B. FINANCIALLY FEASIBLE 19

VIII. EVALUATION & CONTROL 20

A. CURRENT INFORMATION SYSTEM 20

B. CONTROL MEASURES 20

BIBLIOGRAPHY 21

Strategic Audit of Harley Davidson Inc.

I. Current Situation

A. Current Performance

In 2007, GDP ended at 3.1% in America and 2.1% in Eurozone; and is expected to drop further during 2008. According to Jim Ziemer, Chief Executive Officer of Harley-Davidson, Inc., “these are challenging times in the U.S., our international dealer network delivered double digit retail sales growth in the fourth quarter and for the full year of 2007. Our customers around the world have a lot to look forward to this year with the new motorcycles we are bringing to market, the opening of the Harley-Davidson Museum, and hundreds of rides and events leading up to our 105th Anniversary Celebration in Milwaukee this summer.” (PR NewsWire, 2008). With these additions to Harley-Davidson’s current situation, Jim Ziemer is planning to increase sales to make up for lost revenue last year.

Harley-Davidson’s sales decreased from $5.8 billion in 2006 to $5.73 billion in 2007. When measured in sales units, Harley-Davidson’s sales decreased