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External Analysis of the Motorcycle Industry
You are going to cover quite a bit of ground in this Case Assignment because you are tasked with considering what might be included in a PEST and Porter’s 5 Forces analysis of Harley-Davidson’s external environment.
Before you start to write (though you might want to take some notes), spend some time considering what might go into such a PEST analysis and also consider what a strategic manager at H-D might include in a Porter's 5 Forces analysis in considering this organization's external environment.
Some of the more interesting things happening in H-D’s world right now from a competition perspective includes the introduction/re-introduction of two competing motorcycle companies in past years that can also make the claim of being “American Made.” These include “Victory” and “Indian” motorcycles. In addition, most of the foreign competition has entered into the heavy-weight motorcycle market. There are also some concerns nowadays regarding the world economy, and the hefty price-tag that typically accompanies an H-D motorcycle, though H-D tends to rely heavily on a socially based mystique regarding their product line. They have also invested significantly from a technological perspective in relation to logistics and production management efforts. There are also a lot of potential ‘substitute’ products that one might consider as an alternative to riding a motorcycle (depending on the reason for purchasing the motorcycle, be it gas economy, or something exhilarating to do on a warm, sunny weekend).
Based on this information and your background readings, discuss whether you think PEST analysis and Porter’s 5 Forces analysis would be useful tools for H-D executives to help them make wise strategic choices. Give examples to support your arguments and above all, demonstrate that you have a strong grasp of how these analytical tools are used and applied in the strategic management process. Your paper should be 3–4 pages.
Pay special attention to the following case study related to H-D's efforts to expand their operations and sales overseas. This effort obviously ties into the discussion on the external environment:
McBee, R. D. (2011). Harley-Davidson's Future (Abroad). International Journal Of Motorcycle Studies, 7(2), 1-8 (access via Trident’s library through EBSCO database)
Your paper should include an introduction stating the thesis, position, or central theme of 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.
Document your sources and provide in-text citations whenever you use information 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:
Meets Assignment Requirements: Is it apparent that all writing requirements are specifically addressed?
Critical Thinking: Has the student integrated course materials into a well-reasoned presentation of ideas?
Writing: Is the paper clear and well written with an academic tone?
Use of Sources: Did the student apply recent, relevant sources to support key points?
Mechanics: Was the paper properly formatted to include proper use of in-text citations?
External Analysis Of The Motorcycle Industry
Length: 2 pages (550 Words)
External Analysis of the Motorcycle Industry
There aremany factors that can affect the operations of the business. Some are internal factors that can be controlled by the management of the organization and others are external factors that the organization has little influence over. The external factors that affect an organization include political factors, economic factors, social factors, and technological factors (PEST). These factors can create opportunities or threats for the organization. An organization must analyze its external environment so that it may be able to understand the threats and challenges it is likely to face (Gregory, 2000, Pp.49).