Harley Davidson

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Harley's History,today,strengths,weakness.tax structure

Transcript of Harley Davidson

  • The Riders,Dhanraj Koli P-16 Rohit Mundhara P-21 Neha Pandey P-24 Pratik Purav P-29Saurabh Shinde P-35 Renu Karia P-43Dr. V. N. Bedekar Institute of Management Studies, Thane

  • You might be a biker ifYou wave at bikers even when youre 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 cant 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:- class- attitude- aggression- powerI would rather push a Harley than ride a HondaA Bikers Sign

  • Company Profile

    Ranked 397 in fortune 500 listStarted in 1903Earned loyal customers since 106 yearsH.O.G.- the Harley Owners Group: over one million members around the globe

  • Known for its product qualityMarket 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

  • MissionWe 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.

  • Vision

  • ValuesThese 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.

  • 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 officers

  • 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 AustraliaAsian Market Not Promising Potential Customers

    Key ConsiderationsCultureIncome

    Asian Marketi.e. Thailand Taiwan

  • Partnering Ford, Porsche

  • Harley-Davidson Financial ServicesIn 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.

  • Macroeconomic policies

  • Tax structureGovt 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

  • Customs duty for new vehiclesCustoms duty for old vehicles

  • Monetary PolicyComposition of 3 Taxes Luxury Tax Gas Guzzler Tax Corporate Average Fuel Economy10% Import Tax

  • -Customs duty - Excise Duty -Homologation

    Import Tax

  • This policy reflects Harley-Davidsons 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 ResultsRevenue for the full year 2008 was $5.59 billion 2007 was $5.73 billion

    Tax paid by Harley Davidson during FY2008 was 35%

  • Strong marketingProduct Quality Brand Recognition Trademark Licensing Supplier relationship Designer Store ServiceDistribution ChannelWow Biking experience!


  • 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.


  • Price factor Brain drain Reliant on few suppliers Market share Ongoing capacity constraints Lengthy lead time


  • Harleys ongoing capacity restraintsLoss in domestic market share in recent yearsCompetitors of Harley DavidsonEnvironmental protection laws Higher production CostsRecession


  • SWOT AnalysisS-O StrategiesExpand production into Europe and Asia

    S-T Strategies Increase strong brand name

    W-T Strategies Improve employee relationships

  • Expand into Foreign MarketsAsiaEuropeProduct DevelopmentExpand Motorcycle line for younger marketBuell expansionConcentric DiversificationOther recreational vehiclesExpand HOG and BRAG owner member groups

  • WebliograbhyReferenceswww.Harleydavidson.comwww.usautomakers.govwww.wikipedia.comwww.Usgovtstate.gov

  • Thank You