Harley Davidson Final

The Riders,Dhanraj Koli P-16

Rohit Mundhara P-21 Neha Pandey P-24 Pratik Purav P-29Saurabh Shinde P-35 Renu Karia P-43

Dr. V. N. Bedekar Institute of Management Studies, Thane

You might be a biker if…

You wave at bikers even when you’re in your car.You have put motorcycle parts in the dishwasher.You pull your bike into the motel room and use a bath towel to wipe it off.

You take your kids for a ride on your bike before they can walk.You carry a picture of your bike in your wallet.You can’t remember your kids’ names or birthdays, but you can remember that Harley-Davidson made the Knucklehead, Panhead, Shovelhead, Evolution, and Twin Cam 88 & 96

HARLEY DAVIDSON, THE MOTORCYLE BRAND. IS AN EXAMPLE OF HOW PASSION CONSUMERS HAS BEEN INSTRUMDENTAL IN REFLECTING THE LOYALTY TO THE BRAND.

• Harley Davidson:

- class

- attitude

- aggression

- power

• “I would rather push a Harley

than ride a Honda”

A Biker’s Sign…

Company Profile

• Ranked 397 in fortune 500 list• Started in 1903• Earned loyal customers since 106

years• H.O.G.®- the Harley Owners

Group®: over one million members around the globe

• Known for its product quality

• Market Leader in Heavyweight

Motorcycle Segment

• Presence in U.S., Europe, Australia, and

Asia

• 3 Divisions: Harley-Davidson

Heavyweight Motorcycle, Holiday

Rambler, Buell Performance Motorcycle

History

Today

Mission

We fulfill dreams through the experience of motorcycling,

by providing to motorcyclists and to the general public an expanding line of motorcycles, branded products

and services in selected market segments.

HD, Inc. is an action-oriented, international company, a leader in

its commitment to continuously improve our mutually beneficial relationships with stakeholders

(customers, suppliers, employees, shareholders, governments and society). HD believes the key to

success is to balance stakeholders’ interests through the empowerment of all employees to focus on value-

added activities.

Vision

Values

These are our values. They are the

heart of how we run our business. They

guide our actions and serve as the

framework for the decisions and

contributions our employees make at

every level of the Company.

• Tell the Truth. • Be Fair. • Keep Your Promises. • Respect the Individual. • Encourage Intellectual Curiosity.

Corporate Social Responsibility

Influence of religion and

tradition.

Spread of education and

its quality.

Role of social and cultural

institutions.

General standard of living.

Microeconomic Policies-Pricing policy -HR policy

Human Resource Committee Duties and Responsibilities is to review the;Total compensationCareer development and management succession plansMake recommendations regarding the selection and retention of offi cers

Incidents that may involve a potential conflict of interestDisclosure of any waivers of any conflict of interestRegular reports to the Board. Reassess annually the Human Resources Committee performanceEstablish subcommittees and delegate authority to such subcommittees

Human Resource

Pricing Policy

International Expansion

?Focus on EuropeAnd Australia

Asian Market Not Promising

Potential Customers

Key Considerations•Culture• Income

Asian Marketi.e. Thailand Taiwan

Harley

in India

Partnering – Ford, Porsche

Harley-Davidson Financial Services

In 2003, the Buell Motorcycle Company became a wholly-owned subsidiary of Harley-Davidson, the same year that Harley-Davidson celebrated its 100th

birthday. In August 2008, Harley-Davidson purchased the Italian

motorcycle manufacturer MV Agusta.

Buell

Macroeconomic policies

Tax structure

Govt policies on Automobile Industry

• Tax on Bikes in US varies from

state to state

- Hawaii, Montana – No tax

- Colorado – 2.9%

- California – 4.5%

- Texas – 8.25%

- Alabama – 10%

• Motorcycles will now be included as “Qualified Vehicles” in section 1008 of the legislation of this tax relief bill. Anyone purchasing a new motorcycle can deduct the Sales and Excise Tax Paid on their 2009 tax return.

Tax

VehicleBasic Duty

Addl. Duty

Spl. Addl. Duty

Total Duty

Cars 60% 32 % 4 % More than 110 %

Motor cycles/Scooters

/ Moped

60 % 16 % 4 % More than 85 %

Customs duty for new vehicles 

VehicleBasic Duty

Addl. Duty

Spl. Addl. Duty

Total Duty

Cars 105% 32 % 4 % More than 145 %

Motor cycles/scooters/

Moped105 % 16 % 4 % More than 125 %

Customs duty for old vehicles 

Monetary Policy

• Composition of 3 Taxes Luxury Tax Gas Guzzler Tax Corporate Average Fuel Economy• 10% Import Tax

-Customs duty - Excise Duty -Homologation

Import Tax

Corporate environmental policy

This policy reflects Harley-Davidson’s commitment to sustainable business practices which include: compliance with environmental regulations, advancement of environmental awareness, minimization of environmental risks, reduction of emissions and waste and conservation of energy and water consumption.ScopeResponsibility

Challenges of Policies

Harley Davidson Results

• Revenue for the full year

2008 was $5.59 billion

2007 was $5.73 billion

Net Income for

the full year

2008 was

$654.7 million

2007 was

$933.8 million

Tax paid by Harley Davidson during FY2008 was 35%

Strong

marketing

Product Quality

Brand

Recognition

Trademark

Licensing

Supplier

relationship

Designer Store

Service

Distribution

Channel

Wow Biking

experience!

Strengths

The international

market is now

larger than the U. S.

Customers value

quality parts.

Women and

younger riders are

increasing becoming

interested in bikes.

Industry

registrations of

heavyweight

motorcycles are

increasing.

Opportunitie

s

Price factor Brain drain Reliant on few

suppliers Market share Ongoing capacity

constraints Lengthy lead

time

Weakness

Harleys ongoing

capacity restraints

Loss in domestic

market share in

recent years

Competitors of Harley

Davidson

Environmental

protection laws

Higher production

Costs

Recession

Threats

SWOT AnalysisS-O Strategies• Expand production into

Europe and Asia

S-T Strategies • Increase strong brand name

W-T Strategies • Improve employee

relationships

Possible Strategies

Expand into Foreign Markets• Asia• Europe

Product Development• Expand Motorcycle line for younger

market• Buell expansion

Concentric Diversification• Other recreational vehicles• Expand HOG and BRAG owner

member groups

Webliograbhy

References• www.Harleydavidson.com• www.usautomakers.gov• www.wikipedia.com• www.Usgovtstate.gov

Thank You