I think the main issue of Swifty’s Motorcycle Inc is the product delay of 90 days. The customers are not able to see the product for three months. Now days there are places where they can pay for the product and get the item right away so customers would prefer that over having to wait three months.
When it comes to sales representatives they wouldn’t want to sell the XS250 bike because they were only getting $150 over a bike that they can get $900 for. I really think the production problem is what’s important to get fixed right away. Along with that sales representatives should get extra bonuses for selling the XS250 bike. I believe after these changes are made their sales would go up much higher.
This clearly shows that CBI overestimated their sales goal in light of unfavorable economic conditions. Given these conditions, the fact that they still sold more bikes than in year 8 should be considered a positive result.
In terms of corrective action, the best course is to focus on where the points where there were unfavorable variances. A key point to that would be to also create realistic predictions of sales and budget. By predicting a high sales goal (one that exceeds the amount of units sold the year prior), Competition Bikes is potentially setting itself up for another down year.
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.
Consumers are not limited to a single market, many of them will be purchasing multiple bikes, but all of them have specific preferences. Successful company will meet customer’s needs and maximize sales by growing the potential market size as well as taking sales from competitors.
The company started off producing 20,000 units of mountain bikes. We did not change the production quantity. Last year our forecast sales were 24,000 when we only sold 19,866; therefore we thought it would be best to leave production at 20,000 bikes. Having excess inventory, we concluded that 20,000 units should be enough considering our quality has not changed and our advertising will not increase the sales dramatically. Although we had the choice to produce as much as 30,000 units, we felt as though we did not have sufficient money to increase production. We were interested in allocating the money towards marketing as opposed to production. We realized that without awareness, no matter how many units we make, sales would be inefficient.
In 1929, the Wall Street Market crashed causing many businesses to close their doors. Although the Harley-Davidson motorcycle company did not have to close their door, they did suffer major setbacks because of the Wall Street Market crash of 1929. The Wall Street Market crash caused many people to lose their jobs. Thus they would not afford to purchase motorcycles. Then in 1937, the Davidson motorcycles began having engine issues, leaving customers deserted. However, the brothers soon detected and diagnosis the problem with the engines, fixed the engine issues and gave the motorcycles a fresh look.
Harley-Davidson treats the dealers not only as partners, but also as customers. Harley has developed a very effective marketing strategy, but it is the responsibility of manufacturing to produce high quality and reliable motorcycles.
Question #1 If you were CEO of Harley-Davidson, how would you compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales?
Good relationships, continuous improvement, employee and management involvement, team building or employee training and empowerment are not just words out of a management book for Harley-Davidson. Only by adopting those management techniques and building a solid base between the management and the Unions/employees made it possible for Harley-Davidson to improve its management processes. While management 's responsibility is to build
The Harley Owners Group or HOG is a factory sponsored motorcycle enthusiast club established in 1983. Its main aim was to negate the influence of outlaw bike-gangs as the face of the Harley Davidson brand and enhance the lifestyle experience of a Harley Davidson owner. This was the roadmap of the firm’s broad philosophy of getting close to the customer. There was a great need to address two main issues with respect to the brand.
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.
After an investigation by the US International Trade Commission, in 1983 President Reagan imposed a 45% tariff on imported bikes and bikes over 700 cc engine capacity. The new management deliberately exploited the past appeal of their big machines, building motorcycles that purposely adopted the look and feel of their earlier models. Quality increased, technical improvements were made, and buyers returned. Harley-Davidson once again became the sales leader in the heavyweight (over 750 cc) market.
After school ended,I met Kamal at his motorcyle."Are you the one who took my assignment paper?",I asked him.He just ignored my question and keep himself silent."I said, did you take my assignment paper or not?!"I said as i grabbed his shoulder."It's not me."Do you have proof that I'm the one who took your paper?" He answered."I'm not gonna let you go if you are the one who did it",I tried to make him spill the truth."Whatever, I'm out of here",he rode his bike and left me.I went home and searched for it.After hours of searched, I asked my mother if she saw my paper.She said that she put it above the refrigerator because it was lying around.I felt so dumb because accusing Kamal taking my
The Buell division needs to continue to produce a quality motorcycle under Harley’s brand name