Financial Review: The Story Of Harley Davidson Motorcycles

Since the Competition Bike Company projected overly optimistic sales, there are several areas in the budget that will be affected. The areas affected are Sales Commission, Transportation Out, Advertising, Research and Development, Raw Materials, and Labor.

Rate of return on Net Sales: This ratio determines a company’s profit margin on sales. Your company wants a higher number as that shows your company is more profitable. To determine this ratio take the net income and divide it by the net sales. In Year 12 Company G has a return has 6.53% and Year 11 the return was 5.43%. The rate increased by 1.1% over the course of the year. The ratio is showing between the upper and median quartile. This is showing no concern at this time.

From the industry benchmark report for 2014, (appendix) between the year 2013 and 2014 our share value increased from 15.80 to 27.04 placing us ahead of everyone in our world. That is an increase of 172%. From out firm reports (appendix), our net income of 2,764,446 unfortunately fell short of our profit forecast. of 3,501,014. Even though our share holder’s value was the highest amongst our competitors, our profit before taxes was second to Bikes ‘R’Us by a total of $450,000. They had a profit of 4,339,987 while we only had a profit of 3,949,209. A part of the reason why our net income didn’t meet our forecasts and profit before taxes fell short of Bikes’R’Us is due to

Although CB had a great year in year seven compared to year six, the numbers are very different when comparing year 8 to year 7. Sales were down 15% in year 8 compared to your 7, which is a big concern, it can be considered as a weakness for CB. In the storyline for competition bikes, it tells us that this was a year where the economy was very weak, and this can account for the sales to drop. A 15% drop in sales is not a good thing for any company. This 15% drop in CB sales is reflected throughout the rest of the income statement when comparing year 8 two year 7. Because the sales were down 50%, your cost of goods sold was also down 14.5%. Your gross profit was also down 16.3%, and these are all contributing factors from having an economy that is weak during that time.

Harley-Davidson’s Annual Report (2009) indicates sales from motorcycles and related products on a continuing basis decreased 23.1 percent to $4.29 billion compared to 2008 and income from continuing operations decreased 89.7 percent from the prior year to $70.6 million (Harley-Davidson, 2010a). These losses can be attributed to HDFS and the impact of restructuring (Harley-Davidson, 2010a). However, by eliminating excess capacity, reducing administrative costs and non-core business operations, Harley-Davidson believes these steps of restructuring will reflect between $240 million and $260 million in annual ongoing savings (HD1, 2010). Nonetheless, excusing the decline in numbers, Harley-Davidson’s Annual Report (2009) states, since 1993, the company has paid a dividend every year (Harley-Davidson, 2010a).

Harley-Davidson has managed to dominate the U.S. market by investing in research and development, experimenting with its designs and

Celebrating their 100th anniversary next year, Harley-Davidson is a true American success story. From their modest beginnings in Milwaukee, Wisconsin to one of the most recognized company names worldwide, they have been passionate about motorcycles. Harley offers an experience like none other with the one of a kind look, feel, and sound only available on a Harley. Besides their main business of building and selling motorcycles, they have began to offer financing and insurance through Harley-Davidson Financial Services, and they also offer a full line of accessories and apparel to make the Harley experience complete.

Harley Davidson is known as one of the main motorcycle manufacturers and sellers in the United States. The company had good business and great market share in the early 1960s when it commanded a total of about 70% 0f the motorcycle market, before the invasion or the intrusion of a small Japanese firm that manufactured lighter motorcycles, known as the Honda. The case study as identifies that Harley Davidson assumed the invasion by the Japanese firm and instead of tackling the competition, it waited for a long time which resulted in the company losing its command in the motorcycle market in the United States. Lack of action by the management of Harley Davidson resulted in the failure of the company

Milwaukee is where it all started for Harley Davidson. In 1903, William Harley Walter and Arthur Davidson created the first of millions Harley Davidson. It was one of the two major motorcycles that were able to survive the great depression. Since 1977, the only motorcycles sold to the public under the Harley-Davidson brand have been heavyweight motorcycles, with engine displacements greater than 700 cc, designed for cruising on highways. It is one of the most well known brands in the world of motorcycles and otherwise as well. Harley-Davidson maintains an enormous brand community, which keeps active through clubs, events, and a museum. The worth of Harley Davidson brand and its logo was somewhere around $40 million which was 0.8% of the

Historically, how did Harley‐Davidson manage to dominate the US market? How did it do so and what were its sources of competitive advantage?

Historically Harley-Davidson to be a Niche Marketer, which is they had focused in on one particular aspect of the market. Kotler and Keller identified the following characteristics of niche marketing; customers have a distinct set of needs, they are willing to pay more to the firm that best suits their needs, it is not likely to attract competitors, gains economies through specialized products and it has a size, profit and to grow. Almost all of these hold true for the “heavyweight” segment of motor cycles that Harley-Davidson produced.

The overall intensity of rivalry in the motorcycle industry is strong, key players in this industry include the Harley Davidson, Winnebago, Polaris, Thor, Artic Cat and Marine Products. These top performers hold a high percentage of

The success of Harley Davidson (HD) is due to the American motorcycle icon’s effective Strategic Management. HD’s vision, mission, goals and objectives strive to exceed the requirements of its main stakeholders. Although these needs are not always met, the company has unique relationships with is stakeholders. The company stays on course with its strategic plan, despite the economy and the decline of American manufacturing and what might be considered its dwindling U.S. consumer base.

The history of Harley-Davidson is an incredible story of four young men in Milwaukee, who experimented with internal combustion in a 10x15 little shed with the words Harley-Davidson Motor Company inscribed on the front. Not only did they not burn down the shed but they created a business that thrives strong even today.

Currently H-D is the leading seller of heavy weight motorcycles across the entire world. Because they are at the pinnacle they are the target for the competition. Some of Harley Davidson 's advantages are name recognition, brand loyalty, brand quality and customer loyalty (Hitt, Ireland & Hoskisson, 2013, p. 81). The company benefits by having “the made in America” image attached to its products. The image of a Harley rider and owner is one of a tough, independent, free spirit, ready and willing to take on the world type of man. The sound of a H-D motorcycle in idle or being ridden is unique and very identifiable.