IFASWeight Rating Weighted ScoreSTRENGTH

Strong market position and brand image 0.04 4 0.16

0.1 4 0.4

0.03 3 0.09

0.04 2 0.08

Proven product quality 0.06 3 0.18

0.1 4 0.4

0.03 2 0.06

0.07 3 0.21

Harley Davidson has a strong marketing department 0.09 4 0.36

CSR (Breast Cancer Network) 0.03 3 0.09

0.03 4 0.12

0.05 4 0.2

Robust Cash Flow 0.04 4 0.16

WEAKNESS

0.03 2 0.06

Difficult to attract and retain talented employee 0.04 2 0.08

Unfunded employee post retirement benefits 0.02 2 0.04

Declining financial performance 0.1 4 0.4

Poor credit rating 0.03 2 0.06

High price category 0.07 3 0.21

TOTAL 1.00 3.36

Harley Davidson in the only major American motorcycle manufacturer

Harley Davidson operates in two principal business segment; motorcycles&related products and financial service

The Harley Owner Groups (HOG) is the industry largest company sponsored motorcycle enthusiast organization

Harley Davidson is one of the main manufacturer and user of V-Engine configuration

Harley Davidson have a wide variety of products according to standard, performance, Touring & custom

Strong relationship built on trust and respect with supplier and dealers

Harley Davidson offers customers the opportunity to customize their bikers

More diverse lifestyle, creating many Harley Davidson Clubs and academies around the globe like Rider’s Edge

The top Board of Directors for Harley Davidson are all a men

EFAS Weight Rating

OPPORTUNITY

0.05 2 0.1

0.05 2 0.1

0.06 2 0.12

0.05 2 0.1

Increasing demand for bikers in U.S markets 0.05 2 0.1

New interest from different demographic groups outside U.S 0.04 1 0.04

Younger riders are increasing becoming interested in bikers 0.05 2 0.1

0.04 1 0.04

The dealer of Harley Davidson was not enough 0.05 3 0.15

The Harley Davidson has consolidated supplier 0.05 2 0.1

THREATS

0.05 2 0.1

International importing tax 0.06 3 0.18

0.05 2 0.1

0.05 3 0.15

0.05 2 0.1

High rise in the oil prices 0.06 3 0.18

0.03 2 0.06

0.04 2 0.08

Threat new entrants 0.03 2 0.06

0.03 2 0.06

Compete with Japanese Company 0.06 3 0.18

TOTAL 1.00 2.20

Weighted Score

Alliances with Ford Motor Company or other automobile manufacturers are possible

Global recession is effecting economies world wide therefore HD has to sustain its position in the market

The international heavy weight market is growing and now is larger than the U.S. heavyweight market

Asian Economy is booming, China or India is the only place not effected by global recession

Customer value perception through a good quality parts maintaining loyalty

Legislation effects of Helmets for motorcyclist forcing all riders by law

The expiration of U.S government initiatives to stabilize credit markets programs could have a negative impact on capital markets and limit the company’s access to capital market funding

The increase in prices for many key raw material in manufacturing

GDP per capita trend in the past five years is not severe variation

Average purchaser of a U.S Harley Davidson motorcycle is a married male in his mid-forties

More technological advancements because customer looking for energy efficient and technologically advanced bikes now a day

The Harley Davidson is a luxury bike so, there are very few substitutes.

QSPMCost Leadership

Weight Rating

STRENGTH

Strong market position and brand image 0.035 4

Harley Davidson in the only major American motorcycle manufacturer 0.045 4

0.025 3

0.025 4

Proven product quality 0.04 4

0.045 4

0.025 3

Strong relationship built on trust and respect with supplier and dealers 0.02 3

Harley Davidson has a strong marketing department 0.03 4

CSR (Breast Cancer Network) 0.02 2

0.02 3

0.015 2

Robust Cash Flow 0.015 2

WEAKNESSThe top Board of Directors for Harley Davidson are all a men 0.01 2

Difficult to attract and retain talented employee 0.02 2

Unfunded employee post retirement benefits 0.01 2

Declining financial performance 0.03 3

Poor credit rating 0.01 2

High price category 0.025 3OPPORTUNITY

0.025 3

0.025 3

0.025 3

0.025 3

Increasing demand for bikers in U.S markets 0.03 4

New interest from different demographic groups outside US 0.035 3

Younger riders are increasing becoming interested in bikers 0.03 3

0.02 2

The dealer of Harley Davidson was not enough 0.02 2

Harley Davidson operates in two principal business segment; motorcycles & related products and financial service

The Harley Owner Groups (HOG) is the industry largest company sponsored motorcycle enthusiast organization

Harley Davidson is one of the main manufacturer and user of V-Engine configuration

Harley Davidson have a wide variety of products according to standard, performance, Touring & custom

Harley Davidson offers customers the opportunity to customize their bikers

More diverse lifestyle, creating many Harley Davidson Clubs and academies around the globe like Rider’s Edge

Alliances with Ford Motor Company or other automobile manufacturers are possible

Global recession is effecting economies world wide therefore HD has to sustain its position in the market

The international heavy weight market is growing and now is larger than the U.S. heavyweight market

Asian Economy is booming, China or India is the only place not effected by global recession

Customer value perception through a good quality parts maintaining loyalty

The Harley Davidson has consolidated supplier 0.02 2

THREATSLegislation effects of Helmets for motorcyclist forcing all riders by law 0.02 2

International importing tax 0.025 3

0.02 2

The increase in prices for many key row material in manufacturing 0.03 3

GDP per capita trend in the past five years is not severe variation 0.03 3

High rise in the oil prices 0.04 3

0.02 2

0.025 3

Threat new entrants 0.01 2

0.015 2

Compete with Japanese Company 0.045 4

TOTAL 1.00

The expiration of US government initiatives to stabilize credit markets programs could have a negative impact on capital markets and limit the company’s access to capital market funding

Average purchaser of a U.S Harley Davidson motorcycle is a married male in his mid-forties

More technological advancements because customer looking for energy efficient and technologically advanced bikes now a day

The Harley Davidson is a luxury bike so, there are very few substitutes.

Cost Leadership Differentiation

Rating

0.14 4 0.14

0.18 4 0.18

0.075 3 0.075

0.1 3 0.075

0.16 4 0.16

0.18 4 0.18

0.075 3 0.075

0.06 2 0.04

0.12 3 0.09

0.04 2 0.04

0.06 2 0.04

0.03 2 0.03

0.03 2 0.03

0.02 2 0.02

0.04 2 0.04

0.02 2 0.02

0.09 3 0.09

0.02 2 0.02

0.075 3 0.075

0.075 3 0.075

0.075 3 0.075

0.075 3 0.075

0.075 3 0.075

0.12 3 0.09

0.105 3 0.105

0.09 3 0.09

0.04 2 0.04

0.04 2 0.04

Weighted Score

Weighted Score

0.04 2 0.04

0.04 2 0.04

0.075 3 0.075

0.04 2 0.04

0.09 3 0.09

0.09 3 0.09

0.12 3 0.12

0.04 2 0.04

0.075 2 0.05

0.02 2 0.02

0.03 2 0.03

0.18 2 0.09

3.05 2.81

S1

S2

S3

S4

S5

S6

S7

S8

S9S10

S11

S12

S13

OPPORTUNITY

O1 1

O2 2

O3 3

O4 4

O5 Increasing demand for bikers in U.S markets 5

O6

O7

O8

O9 The dealer of Harley Davidson was not enoughO10 The Harley Davidson has consolidated supplier

THREATS

T1 1.

T2 International importing tax 2.

T3 3.

STRENGTH

SO STRATEGIES

Alliances with Ford Motor Company or other automobile manufacturers are possible

Global recession is effecting economies world wide therefore HD has to sustain its position in the market

The international heavy weight market is growing and now is larger than the U.S. heavyweight market

Asian Economy is booming, China or India is the only place not effected by global recession

New interest from different demographic groups outside US

Younger riders are increasing becoming interested in bikers

Customer value perception through a good quality parts maintaining loyalty

Legislation effects of Helmets for motorcyclist forcing all riders by law

The expiration of US government initiatives to stabilize credit markets programs could have a negative impact on capital markets and limit the company’s access to capital market funding

INTERNAL FACTOR

EXTERNAL FACTOR

INTERNAL FACTOR

EXTERNAL FACTOR

T4 4.

T5 5.

T6 High rise in the oil prices 6.

T7 7

T8 8

T9 Threat new entrants 9

T10

T11 Compete with Japanese Company

The increase in prices for many key row material in manufacturing

GDP per capita trend in the past five years is not severe variation

Average purchaser of a U.S Harley Davidson motorcycle is a married male in his mid-forties

More technological advancements because customer looking for energy efficient and technologically advanced bikes now a day

The Harley Davidson is a luxury bike so, there are very few substitutes.

Strong market position and brand image W1

W2

W3

W4

Proven product quality W5

W6

Harley Davidson has a strong marketing departmentCSR (Breast Cancer Network)

Robust Cash Flow

Market penetration (S1;O5) 1.

Increase amount of dealer or after sales service (S9;O8;O9) 2.

Strategic alliances (S2;S4;O1) 3.

Diferentiation focus (S12;O5;O7) 4

Product Development to Increase Sales (S11;O2;O4)

ST STRATEGIES

Continous improvent quality to compete with import (S5;S6;T2) 1.

Differentiation product (S7;T4;T5) 2.

Develop brand community to increase brand awarenes (S12;T7;T9) 3

WEAKNESS

Harley Davidson in the only major American motorcycle manufacturer

Harley Davidson operates in two principal business segment; motorcycles & related products and financial service

Harley Davidson changed from non-formal to formal organization with functional structure

Harley Davidson is one of the main manufacturer and user of V-Engine configuration

Harley Davidson have a wide variety of products according to standard, performance, Touring & custom

Strong relationship built on trust and respect with supplier and dealers

Harley Davidson offers customers the opportunity to customize their bikers

More diverse lifestyle, creating many Harley Davidson Clubs and academies around the globe like Rider’s Edge WO

STRATEGIES

selective to long-term debt (S13;T3;T10)

Safety Helmet Campaign (S10;T1)

Vertical Integration (S13;T3;T4)

Closing the Financial Service (S3;T3)

Buttress business related product and financial service to support R&D (S3;S10;T8)

Cost leadership with supplier and increase service in dealers (S8;T6;T11)

Declining financial performance

Poor credit rating

High price category

Vertical Integration (W5;O1)

WT STRATEGIES

Closing the Financial Service (W2;W5;T3)

The top Board of Directors for Harley Davidson are all a men

Difficult to attract and retain talented employee

Unfunded employee post retirement benefits

Market research to next trend from men's and young riders view (W1;O3;O7)

Expand market to increase financial performance (O6;W4;W5)

Cost leadership with the supplier (W6;O10)

Reward system for talented employee (especially to handle legislation effect) (W2;T1)

Outsourcing for R&D for employee post retirement benefits (W3;T8;T11)

SO STRATEGIES1. Market penetration (S1;O5;O7)

2.

3. Strategic alliances (S2;S4;O1)

4. Diferentiation or product development (S11;O2;O4)ST STRATEGIES

1.

2. Differentiation product (S7;T4;T5)

3.

4. selective to long-term debt (S13;T3;T10)5.

6.

7 Safety Helmet Campaign (S10;T1)8 Vertical Integration (S13;T3;T4)9 Closing the Financial Service (S3;T3)

MarketingMarket penetration (S1;O5)

Diferentiation focus (S11;O2;O4)Differentiation product (S7;T4;T5)

increase service in dealers (S8;T6;T11)

Finance Strategyselective to long-term debt (S13;T3;T10)

Closing the Financial Service (S3;T3)

Strategic alliances (S2;S4;O1)

Closing the Financial Service (W2;W5;T3)

Increase amount of dealer or after sales service (S9;O8;O9)

Continous improvent quality to compete with import (S5;S6;T2)

Develop brand community to increase brand awarenes (S12;T7;T9)

Buttress business related product and financial service to support R&D (S3;S10;T8)

Cost leadership with supplier and increase service in dealers (S8;T6;T11)

Increase amount of dealer or after sales service (S9;O8;O9)

Develop brand community to increase brand awarenes (S12;T7;T9)

Market research to next trend from men's and young riders view (W1;O3)

Expand market to increase financial performance (O6;W4;W5)

Buttress business related product and financial service to support R&D (S3;S10;T8)

WO STRATEGIES1.

2.

3.

4 Vertical Integration (W5;O1)WT STRATEGIES

1.

2.

3 Closing the Financial Service (W2;W5;T3)

Operation Strategy

Vertical Integration (W5;O1)Vertical Integration (S13;T3;T4)

HR Strategy

Safety Helmet Campaign (S10;T1)

Market research to next trend from men's view (W1;O3)

Expand market to increase financial performance (O6;W4;W5)

Proposed "Special" Price with the consolidated supplier (W6;O10)

Reward system for talented employee (especially to handle legislation effect) (W2;T1)

outsourcing for R&D for employee post retirement benefits (W3;T8;T11)

Proposed "Special" Price with the consolidated supplier (W6;O10)

Continous improvent quality to compete with import (S5;S6;T2)

Reward system for talented employee (especially to handle legislation effect) (W2;T1)

outsourcing for R&D for employee post retirement benefits (W3;T8;T11)

MARKETING STRATEGY

(Large money on trade promotion)

FINANCE STRATEGY

R & D STRATEGY

(More appropriate for functional product)

(More appropriate for innovative product)

1.      Market penetration strategy

2.      Market development strategy

3.      Product development strategy:a.       Product modification strategyb.      New product development strategy

4.      Product diversification strategy

5.      Product elimination strategy

6.      Pricing strategy:a.       Skim pricing strategy

b.      Penetration pricing strategy

c.       Dynamic pricing strategy7.      Multiple channel strategy8.      Channel change strategy9.      Advertising & Promotion strategy:

a.       Push strategy

b.      Pull strategy (Much money on consumer advertising to build brand awareness)

10.  Media strategy

1.      Capitalization structure strategy (i.e. A tracking stock)2.      Debt strategy (i.e. Leverage buy-out)

3.      Dividend strategy

4.      Assets management strategy:

a.       Cash management strategyb.      Long-term assets management strategy

1.      Basic R & D Strategy:a.       Defensive R & D

b.      Offensive R & D

2.      Technology development:a.       Technological leaderb.      Technological follower

PRODUCTION STRATEGY

PURCHASING STRATEGY

(Two major suppliers back up for each other parts) LOGISTIC STRATEGY

ORGANIZATION STRATEGY

H R M STRATEGY

I T STRATEGY

1.      Production system:a.       Job shopb.      Batch processc.       Mass production/assembly-lined.      Continuous process

2.      Basic production strategy:a.       Chasing strategyb.      Output-level strategyc.       Sub-contracting strategy

3.      Product engineering strategy4.      Plant location strategy

1.      Multiple sourcing2.      Sole sourcing3.      Parallel sourcing

1.      Logistic centralization 2.      Logistic outsourcing

1.      Organization structure:a.       Simple organizationb.      Functional organizationc.       Divisional organizationd.      Matrix organizatione.       Network organization

2.      Organization restructuring3.      Strengthening the existing organization

1.      Recruitment strategy2.      Compensation strategy3.      Career path (vertical or zigzag?)

1.      Using website2.      Follow the sun management

FUNCTIONAL STRATEGYObjective Strategy

Marketing Strategy

Increase Sales Market penetration

Diferentiation focus on young riders

Increase Brand AwarenessIncrease Financial Performance

Financial StrategyIncrease Credit Rating Debt StrategyIncrease Financial Performance Assets management strategy

Increase Brand Awareness CSR

Operational StrategyReducing raw material cost Consolidated Sourcing strategy

Reducing raw material cost Control Supply Chain Management

Continous improvement quality Human Resources Strategy

Continous improvement quality Compensation StrategyIncreasing Financial performance Recruitment Strategy

Program ObjectiveIncrease Sales

Product Development

Increase Brand Awareness

Develop brand community Expand market Increase Financial Performance

Selective to long-term debt Strategic alliances

Closing the Financial Service Increase Credit RatingSafety Helmet Campaign Reducing raw material cost

Continous improvement quality

Vertical Integration

Reward system for talented employee

Increase amount of dealer or after sales service

Market research to next trend from men's and young riders view

Buttress business related product and financial service to support R&D

Proposed "Special" Price with the consolidated supplier

Outsourcing for R&D for employee post retirement benefits

Program TimelineIncrease amount of dealer or after sales service 1-5 years

3-6 Months

Product Development 1 Year

Develop brand community 3 Months

Safety Helmet Campaign 6-12 MonthsExpand market 1-5 YearsStrategic alliances 1 YearClosing the Financial Service 3-12 Months

1 Year

6 Months

Selective to long-term debt 1 Months

2-4 Weeks

Vertical Integration 1-2 Years

Vertical Integration 1-2 Years

6-12 Months

Market research to next trend from men's and young riders view

Buttress business related product and financial service to support R&D

Outsourcing for R&D for employee post retirement benefits

Proposed "Special" Price with the consolidated supplier

Reward system for talented employee (especially to handle legislation effect)

StaffingMarketing, Operational, HR & Finance

Marketing

Marketing

Marketing & FinanceMarketing & FinanceFinance & OperationalFinance & HR

Finance & R&D

Human Resources

Finance

Operational

Operational & Finance

Operational & Finance

Human Resources & Finance