You are on page 1of 2

Harley Davidson case study 1.

Harley-Davidsons business strategy is one that includes exporting as well as being involved in joint ventures. Because Harley-Davidson bikes proved to be as popular abroad as they were in the United States, the company decided to think more seriously about international markets and exporting. In addition, Harley launched a joint venture with Porsche AG of Stuttgart, Germany. Companies and firms like Harley engage in joint ventures, or coownership arrangements, in order to establish a direct investment presence in a foreign country that pool resources and share risks and control for business operations. In this joint venture with Porsche, Harley hoped to source and assembles power-train components for use in potential new motorcycle products. I would consider Harley to be a multinational corporation. 2. If I was Harleys top management, I would consider expanding in regions such as Asia or Europe. I would consider expanding in Asia because Asia is a megamarket, meaning it is still gaining as a power in the world economy while also already achieving superpower status. In Asian regions, opportunity is always the watchword of the day. I feel that Europe would also be a good place to expand because Europe is currently a place going through dramatic political and economic development. Europe is a region that is willing to eliminate trade barriers, create uniform minimum technical product standards, unify financial regulations, and offer a common currency. 3. The advantages of overseas production could include lower costs of production in international destinations, which in turn could lead to increased profits. Overseas production could also give the company more widespread recognition. The disadvantages could include the loss of local jobs, shifting capital investments abroad, and engaging in corrupt practices in foreign settings. Producing overseas could also diminish the companys prestige. What is meant by this is that when people overseas purchase a Harley, they are purchasing what some call a piece of the American dream. If production is moved overseas, this feeling may be lost or not as evident in their lives because Harleys would not be as special and may become too common. 4. Traditionally, the companys ads had been translated word for word into foreign languages. Nowadays, the ads are developed specifically for different markets and rallies adapted to fit local customs. Harley also began to think more seriously about international markets by setting up a branch of the Harley Owners Group (H.O.G.) in Germany to serve European owners and fans. The H.O.G. gave Harley owners certain benefits such as

emergency road service and opportunities to ride with other Harley owners. Furthermore, Harley began to actively recruit and develop dealers in Europe and Japan in order to improve their human relations. 5. This decision made the company stand out more because it made the company sound more prestige. Instead of being just another company supplying another means of transportation, I think it sent the message across that once a person gets a hold of a Harley bike, it can change the way they look at life. Getting a Harley was meant to bring more excitement into ones life. This is what made a Harley unique when compared to other motorcycles. 6. I think Harleys movement across seas could have some positive and negative effects on its potential management choice of Theory Z. Because Theory Z addresses the need to use consensus decision making, and it also emphasizes the use of teamwork, this is where I think Harleys movement across seas could have a positive effect on its choice of Theory Z. Moving across seas would require Harley to operate across borders while making major decisions from a more global perspective. This would require teamwork between those working in Harleys homeland, with those working overseas. A negative effect moving overseas could have is that long-term employment could be in jeopardy for some employees working in the U.S. Moving overseas could lead to cut backs or closings of domestic operations if overseas production is less costly than domestic production. Therefore, domestic workers may lose their jobs as a result and may not have a chance to secure a long-term employment status.