Global Economy / Factors Affecting Global Economy
Right now the global economic outlook is relatively positive. According to figures projected by International Monetary Fund (IMF) the world GDP continues to decline, and even the modest growth figures previously projected have been minimized (IMF, 2012). In 2011, the global economy was expected to expand at a rate of 4% over the following year, but based on certain global and local factors those numbers have been reevaluated. The current guess is that year-end numbers will show only a 3 1/4% growth rate (IMF, 2012). This is due to the many obligations and economic tragedies that face the European Union, and the fact that emerging countries such as China and India are far below growth expectations. For one, this means that companies wishing to expand internationally have to realize the problems that they may encounter because of the decrease in individual wealth relative to the real increased cost of necessary goods.
One company that wishes to pursue expansion due to the promise of its recent business successes is Harley Davidson Motorcycles. There are many reasons why motorcycle companies, in general, may see growth over the coming years (lower cost, greater fuel economy), but risks are also very real when expanding in the current global market. The global economic outlook projections prove that this may not be the easiest time for a charge into new markets. Any expansion must be careful when managers are considering new markets.
Harley Davidson has rebuilt itself into one of the best known and respected worldwide brands, and the company has been reinvented in recent years into a very solid financial organization. The company is motivated to continue this upward trend by seeking expanded entry into foreign markets where customers have not had the benefit of the types of machines that Harley Davidson provides. However, the company also realizes that because all strata of society are being affected by the global economic slowdown, there may not be the interest in products such as Harley Davidson sells. It is possible the these goods will be thought of as extravagances rather than necessities which could diminish the success of expansion efforts.
One of the main issues then that Harley Davidson may face is to determine which markets are the best fit for its business. Since most of the motorcycles built by the company are at the higher end of the price range that most enthusiasts will pay, it is crucial that the company either determines markets that will accept machines that are already in production, or determine new motorcycles that they can market. Harley’s competitive advantage is that the product they make is unique in many world markets. Harley Davidson produces luxury motorcycles that are meant to be ridden on the street, but are not conducive to racing (Harley-Davidson, 2012). This uniqueness also produces a customer base that has proven extremely loyal to the brand. By focusing less on what is already available in new markets and more on what has made Harley Davidson a success in the U.S., it should be possible to make a strong entry into new markets that have been closed in the past.
As with most modern companies, Harley Davidson has to have an electronic presence that lends itself to modern sales and promotion. The company has already taken steps to increase its brand by using social media to help current owners share their experiences, but this promotion has an added benefit to the company also. By effectively using social media, the company has been able to project its brand around the world and make its products desirable to new customers. Prospective customers can both see new products on the company’s website and buy the custom machine that they desire. Then the buyer can use social media to connect with other Harley riders. The company’s use of the internet only serves to increase the brand loyalty that has made Harley a very successful American brand.
Because the global economy has been slowed in recent years by the 2008/2009 financial crisis, Harley Davidson, like many other companies has had to reevaluate how it conducts business. The company wishes to expand to other markets, but to accomplish this the management team realized that they needed to strengthen the manufacturing base in the United States (Barrett, 2011). Thus the company changed an organizational design that had become cumbersome and proved too unmanageable in the current global marketplace. To streamline operations the company has retooled its manufacturing facilities and redistributed some of the jobs that were previously done exclusively by Harley Davidson employees. Some of the manufacturing duties were outsourced to specialty companies, and a system of using seasonal workers was implemented (Barrett, 2011). The seasonal work was set to coincide with the greatest needs for production increases throughout the year. Unfortunately, this meant that a large number of employees were unable to keep their jobs, but it has made the company financially stronger.
Recent studies have shown that the employees who remained at the company were more dedicated to the work they were doing, and they were more loyal to the Harley Davidson brand than previously (Harley Davidson, 2012). The company made the cuts to ensure that the workforce that remained would have a more stable workplace, and that Harley Davidson would be able to thrive in the future. This has proven to be true as the company has shown increases in revenue and stock price in each of the last five quarters (Fraser, 2012). The fact that the company has been able to keep operating during difficult financial times is a testament to the management team that maintained as many jobs as possible while making changes that would benefit Harley Davidson for many years to come.
Most companies also realize that unless they are operating ethically, towards their employees and customers, they will have a difficult time being successful in the present business environment. Harley Davidson has commitments to the MDA through rides that the company sponsors and other fund raisers. The company has also presented a stance on providing a secure, diverse workplace that honors individuality and person responsibility. However, it does not seem that Harley Davidson has publicized a commitment to the environment or social responsibility (other than its contributions to the MDA). Although the company may be very responsible in these areas, it does not make significant mention of that fact on its website.
One area that the company does widely publicize is its commitment to its employees and their continued ability to grow with the company. According to the company website, employees are given constant opportunities to better their education and to increase the company-specific training they need to advance within the company (Harley Davidson, 2012). However, the focus of the company seems to be more customer than employee focused. The focus seems to be one of customer enjoyment of the products and social activities rather than shared enjoyment. The employees have training and education available to them, but with the cuts recently made in the workforce, it may be more difficult for these employees to take advantage of the reduced amount of advancement opportunities that exist.
Strategic Plan Summary
The general conclusion to the plan that the company has put in place is that it seems that Harley Davidson is working hard to reestablish itself after some difficult financial times in 2008/2009, and the focus has been less on expansion than streamlining the current operations. Harley Davidson, like many other large corporations has had to deal with diminishing stock prices and decreased revenue in recent years, and this has colored any attempts they have made at expanding their reach into the global market. However, because of the recent success the company has had regaining lost revenue in the U.S. market, there is renewed talk regarding global expansion.
Because the success in the United States has more to do with a lifestyle than just the product, it seems imperative that Harley Davidson use this same approach with its foreign business. Many countries use motorcycles in the same way that cars are used in the United States, but they are generally of a much smaller and less powerful variety than Harley makes. It seems that to build the community the company wishes to establish among foreign customers, they will need to tailor their products to those countries. However, as the standard of living increases in countries such as China, and as the citizenry westernizes, it may be possible to sell the same products that U.S. customers have enjoyed for many years.
The way to implement these changes is to determine a very few tests markets that seem most likely to welcome Harley Davidson’s expansion efforts. Besides China, India and other Asian countries (South Korea, Viet Nam) may be the best fit. Europe remains a difficult market because of the financial crisis that continues to grip the EU, and most African nations are not yet ready for such a company because of economic and infrastructure concerns. By testing advertisements in Asian nations that seem ready for a new motorcycle brand, Harley Davidson could find a new customer base that is ready for its products. China seems the most likely candidate because of its strong growth and increasingly compatible infrastructure.
This type of expansion is risky as is any other large investment. Foreign customers may not want to change the type of motorcycle that they are used to and adopt a more Americanized vehicle. The very fact that the company is based in the U.S. could present a problem in marketing. Also, because of the recent financial downturn, there is still the risk of expending large amounts of capital on such a venture. It is wise to put feelers out before committing a great deal of assets to any new enterprise.
Barrett, R. (2011, April 30). Harley-Davidson is changing to adapt here and globally. Retrieved from http://www.jsonline.com/business/121029763.html
Fraser, C. (2012, September 11). Harley-Davidson: Born to rise. Retrieved from http://www.investingdaily.com/15643/harley-davidson-born-to-rise
Harley-Davidson. (2012). Company. Retrieved from http://www.harley- davidson.com/en_US/Content/Pages/Company/company.html?locale=en_US&b mLocale=en_US
International Monetary Fund (IMF). (2012). Global recovery stalls, downside risks intensify. World Economic Outlook. Retrieved from http://www.imf.org/external/pubs/ft/weo/2012/update/01/pdf/0112.pdf
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!