Assignment 2: Harley-Davidson: External and Internal Analysis

 

Instructions for this assignment: Perform all of the elements listed below.

 

This assignment has you complete two parts of a strategic business plan. To see how those parts fit into a full business plan, click here for a strategic business plan outline.

 

Part I – Analysis of the External Environment

 

As part of the Strategic Business Plan, you have been asked to:

 

• Identify and analyze the major driving forces for change in the external environment of the motorcycle industry.
• Analyze the dynamics of competition using Porter’s Five Forces Model of Competition. Correctly assess the dynamics of competition.
• Provide at least three statistics about the size of the motorcycle industry such as revenue, growth rate, number of units sold by manufacturer/country, etc.
• Summarize the strategic issues firms in this industry face and identify their biggest threats.

 

This section should be titled “The Analysis of H-D’s External Environment.”

 

Part II – Internal Environment Analysis

 

Financial

 

Gather the financial information necessary to do a complete ratio analysis and the Balance Score Card (BSC) key metrics information.

 

If you were going to create a BSC, what would be the key metrics you would measure in each of the four BSC areas:

 

• Financial
• Customer
• Internal Business Process
• Learning and Growth

 

Perform a ratio analysis using H-D’s five-year financial performance. Interpret the meaning of the ratios and financial performance.

 

This section should be titled “The Analysis of H-D’s Current Strategy: Two Views.” Be sure to include the ratio analysis. You may also include other graphics to support your narrative.

 

Competitors

 

Based on your analysis, you must decide which two competitors present the biggest competitive threat to H-D.

 

Perform a financial ratio analysis for the competitors after looking at trends in financial performance over five years, and compare the trends to industry averages.

 

Be sure you have a clear ranking of the industries’ competitors.

 

This section should be titled “Competitor Analysis.” Be sure to include the financial ratio analysis. You may also include other graphics to support your narrative.

This assignment should be 4 to 8 pages in length.

 

Submit your Word document to the M2 Assignment 2 Dropbox by Wednesday, November 9, 2016.

 

Strategic Business Plan Outline

 

Part I – Feasibility Study

 

1. Cover page
2. Table of Contents
3. Executive Summary
4. Summary of Strategic Direction                                                                     [Module 1]
   1. Vision
   2. Mission/ Corporate Values
   3. Goals
5. Stakeholders Interest/ Needs
6. Analysis of the External Environment                                                            [Module 2- Part 1]
   1. Results from Scanning
   2. Results from Monitoring
   3. Competitive Environment

 

1. 1. 1. Porter’s Five Forces Model
      2. Value Net Analysis
      3. Dynamics of Competition/ Competitor Analysis

 

6. 4. Strategic Challenges/ Issues facing the Industry
7. Internal Environment Analysis                                                           [Module 2 – Part 2]
   1. SWOT Analysis
   2. Value Chain Analysis

 

1. 1. 1. Primary Activities
      2. Secondary Activities
      3. Resource Based Analysis
         1. Internal
         2. External
         3. Achieving Sustainable Competitive Advantage
      4. Financial Ratio Analysis/ Five year period

 

8. Strategy Analysis                                                                                            [Module 3]
   1. Cost Leadership Strategy

 

1. 1. 1. Identify elements that could lead to sustainable advantage
      2. Advantages/ Disadvantages of this strategy

 

8. 2. Differentiation Strategy

 

1. 1. 1. Identify elements that could lead to sustainable advantage
      2. Advantages/ Disadvantages of this strategy

 

8. 3. Focus Strategy

 

1. 1. 1. Identify elements that could lead to sustainable advantage
      2. Advantages/ Disadvantages of this strategy

 

8. 4. Combination Strategy

 

1. 1. 1. Identify elements that could lead to sustainable advantage using several of Cost/ Differentiation/ Focus
      2. Advantages/ Disadvantages of this strategy

 

8. 5. Industry/ Firm Life Cycle

 

1. 1. 1. Strategic implications of each stage analyzed

 

9. Corporate Level Strategy                                                                                [Module 3
   1. Identify consequences of Diversification

 

1. 1. 1. Economies of Scope
      2. Revenue Enhancement
      3. Market Power

 

9. 2. Identify unrelated Diversification

 

1. 1. 1. Financial Synergy
      2. Parenting

 

9. 3. Methods of achieving Diversification

 

1. 1. 1. Mergers & Acquisitions
      2. Strategic Alliances/ Joint Ventures
      3. Internal Development

 

9. 4. Corporate Ethics in Value Creation
10. Feasibility Study Summary
    1. Conclusions
    2. Recommendations
11. Appendix

 

 

 

Part II – Strategic Plan

 

12. Cover page
13. Table of Contents
14. Executive Summary
15. Global Economy/ Factors Affecting Global Economy                                   [Module 4]
    1. Motivations/ Risks

 

1. 1. 1. Motivations for Expansion
      2. Risks in Expansion

 

15. 2. Competitive Advantage in Global Markets
    3. Entry Strategies for Global Expansion
    4. Internet Approach/ Strategy

 

1. 1. 1. How the Internet adds value
      2. Internet Business Models
      3. Competitive Strategies
      4. Leverage E-Business Capabilities

 

16. Corporate Leadership                                                                                     [Module 5]
    1. Direction Setting
    2. Organizational Design
    3. Organizational Culture
    4. Leadership Traits
    5. Ethical Organization Characteristics

 

1. 1. 1. Identify elements
      2. Identify missing elements

 

16. 6. Learning Organization Characteristics

 

1. 1. 1. Identify elements
      2. Identify missing elements

 

17. Strategic Plan Summary
    1. Conclusions
    2. Recommendations
    3. Implementation
    4. Risks
18. Appendix