Module 3 - Case STRATEGIC MANAGEMENT: EXTERNAL ANALYSIS AND SWOT External Analysis of the Motorcycle Industry Like other companies, H-D operates in a complex global industry. In order to develop and execute a successful strategy, the Harley-Davidson Motor Company must take into account the global automotive environment. In this Case Assignment you are going to be asked to discuss H-D from a strategic perspective. Please read the information in the background material, look for more information, and then write a 4- to 5-page report for your professor and the executives of Harley-Davidson by answering the following questions: What are H-D`s Opportunities for moving forward in the competitive motorcycle manufacturing and sales environment? What threats does the company face? Consider the Lehman Trikes case study below. To what extend do you think the alliance between H-D and Lehman Trikes presented an opportunity for H-D? To what exent do you think this was an opportunity for Lehman? Make sure you support your arguments. Here is the Lehman Trikes article: Looney, D. C., & Ryerson, A. (2011). Lehman Trikes: A story within a story. Journal Of The International Academy For Case Studies, 17(7), 45-58. (Available via the Library by way of the EBSCO database). Note: Please note that your report/assignment will not be accepted without proper citations and references. You must use the sources from the background material together with the sources you find your own. Assignment Expectations This paper should include: An introduction stating the thesis, position, or central theme you plan to take in your paper, a main body focusing on the key assignment specifications, and a conclusion concisely stating the main points of your analysis and the conclusions you reached. Be sure to document your sources and provide in-text citations whenever you use information you obtained from a background reading or other outside source, as well as a separate reference list at the end of the paper. You may use footnotes instead, if you prefer, but you must document where you got the information you are using in your papers! The following criteria will also be used to assess your paper: Precision: Does the paper address the question(s) or task(s)? Breadth: Is the full breadth of the subject (i.e., all the keys to the assignment) addressed? Depth: Does the paper/report address all elements of the topic in sufficient depth? Does it include and apply the background readings and other background resources? Are they included as references? Critical thinking: Are the concepts of this module applied accurately, logically, and relevantly? Organization: Is the paper organized in a coherent and systematic manner? Are headings included in all papers longer than 2 pages? Clarity: Is the writing clear and are the concepts articulated properly? Are paraphrasing and synthesis of concepts the primary means of response to the questions, or are thoughts conveyed through excessive use of quotations? Module 3 - Background STRATEGIC MANAGEMENT: EXTERNAL ANALYSIS AND SWOT In this module, we’ll be considering the OT of SWOT. That is, we are going to be looking at the usefulness of understanding the opportunities and threats faced by a given organization. SWOT Analysis SWOT stands for: Strengths, Weaknesses, Opportunities, and Threats. The first two relate to internal analysis, the latter to external analysis. External analyses are performed at several levels in order to determine Threats and Opportunities. The tools we looked at in the last module including PEST analysis and Porter’s 5 Forces analysis are macro level analytical tools. SWOT, however, is more of a micro level tool in that it focuses on the organization itself rather than on the larger environment, although the environmental interface is considered. Threats are environmental conditions that may affect negatively a company. Opportunities are favorable conditions in the environment. Therefore, companies need to be able to manage threats and take advantage of opportunities. Thus, the external environment analysis enables us to identify threats and opportunities , 2 of the elements of the SWOT analysis. There are several environmental levels: Required Reading Review the reading materials presented in the earlier modules as many of them may prove useful for this module since we still have one eye on the external environment. The external environment after all, is where all the competitors, suppliers and customers reside. Here is an article that discusses some internal and external challenges faced by Harley Davidson: Taylor, A., (2012). The Hurdles at Harley-Davidson. CNN Money – Fortune. Retrieved from: http://money.cnn.com/2012/10/03/autos/harley-davidson-polaris.fortune/index.html Here is a very brief strategic analysis of HD. It will provide you with some useful information in putting together your assignments and should give you some ideas on how to fashion a brief strategic analysis. GlobalData, (2012). Harley-Davidson, Inc. – Financial and Strategic Analysis Review. Retrieved from: http://callisto.ggsrv.com/imgsrv/Fetch?banner=4d609cd7&digest=27b6b6d33026b58ef227e0025dda7d42&contentSet=SWOT&recordID=47405_GDAUT29887FSA Here is a fairly recent article that speaks to HD’s worldwide sales: UMC Staff, (2013) Harley-Davidson | 2012 Worldwide Sales Up 6.2%. Ultimate Motorcycling. Retrieved from: http://ultimatemotorcycling.com/harley-davidson-2012-worldwide-sales-up-6-2/ Here is an article that discusses some internal and external challenges faced by Harley Davidson: Taylor, A., (2012). The Hurdles at Harley-Davidson. CNN Money – Fortune. Retrieved from: http://money.cnn.com/2012/10/03/autos/harley-davidson-polaris.fortune/index.html Here is a press release from 2012 that provides some good overview information on what was going on at HD in August of 2012: Harley Davidson, (2012). Harley Davidson shows continued improvement. Retrieved from: http://www.harley-davidson.com/en_US/Content/Pages/HD_News/Company/news.html?article=en_US/News/1483_press_release.hdnews Here is an overview of SWOT analyses. There are examples at the bottom of the Web page you might want to take a look at as well. Marketingteacher.com (2011). SWOT Analysis. Retrieved, from http://marketingteacher.com/lesson-store/lesson-swot.html The following PowerPoint is also useful to understand external analysis of the company: Be.wvu.edu (n.d.). External analysis. Retrieved, from www.be.wvu.edu/divmim/mgmt/insch/External.ppt Here is the Case Assignment article: Looney, D. C., & Ryerson, A. (2011). Lehman Trikes: A story within a story. Journal Of The International Academy For Case Studies, 17(7), 45-58. (Available via the Library by way of the EBSCO database).