Describe Harley-Davidson's international
business strategy. Would you consider Harley to be a multinational corporation?
When entering global markets a common mistake made is not inquiring
about local tastes resulting in a culture clash of ideas. After Harley-Davidson became aware of the possibility of global
markets it changed its products and advertisements to suit the local customers. At the time Harley-Davidson had implemented
different strategies to gain customers, such as the H.O.G. program, and that too was modified to fit local tastes. An example
of Harley-Davidson adhering their products to local tastes is in Germany, where it was to be found that owners would ride
their bikes at speeds over 100 mph, therefore they engineered their bikes to have a smoother ride.
Due to the fact that Harley-Davidson has established a reputation
globally, especially in countries like Japan and Germany, their company can be regarded as a multinational corporation. Their
product is bought by many consumers across many nations as well as their non-bike product line due to their reputation for
independence and rebellion.
If you were Harley's top management,
in which regions of the world would you consider expanding?
If placed in this position, I would consider expanding into markets
with a high concentration of motorcycle ownership. This would most likely include countries like India and China. India would
be a good target due to a present upper class that cares about image, and a large population. The only barrier in less developed
countries is the price factor and the lack of need for heavyweight bikes. Western Europe and India could be an expanded target,
though, depending upon good advertising of Harley-Davidsons image and reputation, as well as molding the product to the local
consumers needs.
Evaluate Harley-Davidson's decision
not to produce overseas. What would be the advantages of overseas production? What problems might the company encounter if
it does manufacture abroad?
Harley-Davidson, like many companies that produce their products
in America, carries a reputation for their American made product and a reputation that the Harley represent Americana culture.
Yet many companies have switched to overseas production due to cheaper labor costs. The company could also face less restrictions
concerning its corporate practices as well as environmental and labor regulation. The downside to this would be the negative
outlook on its reputation and the loss of the image as an American made product. Also the company could face adversity concerning
corrupt government practices, difficulty in currency exchange and standards, as well as conducting business in a different
cultural environment.
Describe how Harley's management
style may have changed over time. Use optional classical, human relations, and modern approaches in your answer.
Check Harley's Homepage for information.
Harley started out with a large amount of competition, being on
in more than a 100 different motorcycle manufacturers, the U.S. government helped Harley become the sole manufacturer of motorcycles
while carrying out a contract for both world wars. Later on lighter models of motorcycles were brought in by the British as
well as Honda. Harley tried changing its product to a lighter model, even going so far as buying out an Italian motorcycle
firm, yet it could not compete in the market. After AMF bought the company, the focus was changed to quantity rather than
quality, sacrificing Harleys reputation. Finally a team of managers bought back the company and began to focus on detail and
what the consumer wanted. This group also shifted the focus back to heavyweight bikes. Concerning analysis of the management
style, Harley began with a classical view, focusing on the business rather than the consumer and shifted to a more modern
view by concentrating on customers tastes and details.
Harley appears to have moved from
providing a product (motorcycles) to providing a service (a way of life). Discuss how this movement from products to
services may have affected the company.
Harley has begun to profit more from its non-bike line than its
motorcycles. These non-bike products make almost half of Harleys profit. Items such as hats, t-shirts and jackets display
the Harley logo and exhibit Harleys reputation. Since these products are popular with non-bikers as well, Harley is able to
expand into a market it was unable to do so with its bikes. Also because non-bikers are proliferating the Harley-Davidson
label as well as the bikers, the reputation of Harley-Davidson become more popularly known than if only bike owners were to
own a piece of Harley-Davidson. As a result Harley is able to expand into markets that affect a wider base of customers rather
than just baby boomers looking for rebellion.
What effect might Harley's movement
overseas have on its potential management choice of Theory Z?
If Harley decided to move its production overseas, it would be forced
to alter its management scheme. Since Harley would be dealing with a different culture, and a different system of governance,
management would have to adapt their plans to the change. But since the production would be in the center of its international
targets, it would be more aware of international tastes and preferences, and could manipulate its product to suit the consumers
in that zone better. If Harley decided to move its production to a lower labor bracket, Harley would be able to profit from
the lower labor costs, but would have to adapt dramatically to the lack of skilled workers, corrupt government and primitive
transportation systems of most of the third world countries that have low labor costs.
Locate five sources on the web
that discuss early theories of management.
