Business Unit Analysis Directions: Create A Feasibility Stud ✓ Solved

Business Unit Analysisdirections Create A Feasibility Study For Harle

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 lawsuits 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. 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.

Sample Paper For Above instruction

Introduction

Harley-Davidson (H-D) stands as an iconic brand synonymous with motorcycle culture and American engineering excellence. Conducting a comprehensive feasibility study involves analyzing its current business units, strategic positioning, and growth opportunities to ensure sustained competitiveness in a dynamic industry landscape. This paper delves into the various brand units, performs a SWOT analysis, and explores innovative strategies for future expansion and profitability.

Part I: Differentiation Strategies

Harley-Davidson’s diverse brand portfolio includes the core Harley brand, along with sub-brands like Harley Davidson Touring, Softail, and the Street series. Each brand caters to specific target markets, with Harley’s core audience being urban and suburban adult males aged 35-55 who value heritage, performance, and customization. The Touring line appeals to long-distance riders seeking comfort and durability, whereas the Street series targets younger, urban riders eager for agility and style.

Research from the Harley-Davidson website and annual reports indicates that the main points of differentiation lie in brand heritage, customization options, and exclusive riding experiences. For example, the Harley Davidson Touring bikes emphasize comfort and technological features, while the Softail line offers vintage styling with modern performance. These distinctions affirm that the brands occupy specific niches catered to distinct customer needs.

Analyzing the portfolio also reveals potential gaps, such as a minimal presence in electric bikes relative to rising EV trends. Strategic opportunities exist to expand electric offerings, possibly through partnerships or acquisitions of electric motorcycle startups like LiveWire, which Harley-Davidson recently acquired. A joint venture with technology firms could accelerate innovation and broaden the company’s market reach.

Part II: SWOT Analysis

Internal Strengths of Harley-Davidson include a strong brand heritage recognized worldwide and a loyal customer base. Its capabilities in manufacturing, customization, and branding are significant assets. The company excels in marketing initiatives that foster a sense of community and loyalty among enthusiasts, leveraging innovative marketing channels and event sponsorships.

Operational excellence is demonstrated through quality manufacturing processes and consistent delivery of reliable motorcycles. Human resources practices have historically been a strength, maintaining a skilled workforce and fostering an ethical work environment, as evidenced by the company’s adherence to fair hiring practices and diversity initiatives.

Leadership possesses extensive industry knowledge, with a clear vision for technological innovation, particularly in electric motorcycles. Supply chain management is optimized through strategic sourcing, joint forecasting, and vendor partnerships, ensuring efficiency and cost containment.

Harley’s commitment to corporate responsibility emphasizes environmental sustainability and social responsibility. However, ethical concerns related to labor practices or environmental impact have been minimal, indicating strong corporate governance.

On the safety and quality front, Harley maintains rigorous standards, although continually evolving safety technologies and industry safety protocols remain central to its operational focus.

External Opportunities and Threats include the shifting consumer preferences toward electric mobility and emerging markets in Asia and Africa. Competition from startups offering innovative electric bikes poses a threat but also provides an opportunity for Harley to lead in electric motorcycle innovation.

Part III: Growth and Profitability Strategies

Strategic growth opportunities for Harley-Davidson include further vertical integration by developing in-house electric motor technology, shoring up supply chain resilience, and expanding into emerging markets through localized manufacturing and tailored marketing campaigns. Additionally, forming strategic alliances with tech companies can foster innovation in connectivity and smart features.

Potential acquisitions could include electric vehicle startups or tech firms developing urban mobility solutions, which could diversify revenue streams and market reach.

From a diversification standpoint, Harley could expand its product line into related mobility segments like electric scooters or pedal-assist bikes, leveraging its brand recognition to capture new customer segments.

Ranked strategies show that technological innovation, market expansion, and strategic alliances are among the most promising avenues. For example, partnering with electric vehicle startups allows Harley to capitalize on EV trends without overextending its core competencies.

The top five strategies identified are:

  • Develop in-house electric motorcycle technology
  • Expand into emerging markets via localized manufacturing
  • Form strategic alliances with tech firms for connectivity features
  • Acquire innovative electric mobility startups
  • Introduce new related mobility products like electric scooters

Each strategy aligns with Harley’s core competencies, enhances its product portfolio, and fosters potential synergy within its brand ecosystem. The challenge lies in resource allocation and managing technological integration efficiently.

Conclusion

Harley-Davidson’s future growth hinges on leveraging its heritage while innovating technologically for emerging market trends. Strategic diversification, technological advancement, and global expansion stand as pillars for sustainable profitability and competitive advantage. Conducting ongoing feasibility assessments will be crucial in adapting to industry shifts and consumer preferences.

References

  • Harley-Davidson Annual Report 2022
  • Porter, M. E. (1985). Competitive Advantage. Free Press.
  • Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
  • Christensen, C. M. (1997). The Innovator’s Dilemma. Harvard Business Review Press.
  • Kotler, P., & Keller, K. L. (2016). Marketing Management (15th Edition). Pearson.
  • Harley-Davidson Website, www.harley-davidson.com
  • U.S. News & World Report, Industry Analysis of Electric Vehicles, 2023
  • Foster, R. N. (1986). Innovation: The Attacker’s Advantage. The Free Press.
  • Harley-Davidson Sustainability Report, 2022
  • PwC Industry Reports, Motorcycle Industry Outlook 2023

Related Assignments