Harley Davidson Case study maybe questions

What was the central strategic dilemma CEO Matthew Levatich faced in 2017? a) Whether to invest in electric motorcycles or traditional engines. b) Whether to pursue international growth or align with the "America First" policy by focusing on domestic production. c) How to manage a price war with Japanese competitors. d) Deciding whether to close the assembly plants in Brazil and India

b) Whether to pursue international growth or align with the "America First" policy by focusing on domestic production.

What was the central strategic dilemma CEO Matthew Levatich faced, which required making a significant trade-off between two incompatible positions? Whether to invest in electric motorcycles or traditional engines. b) Whether to pursue international growth, particularly in Asia, or to align with the "America First" policy by focusing on domestic production. c) How to manage a price war with domestic competitor Polaris. d) Deciding whether to use a franchise model or a direct sales model for dealerships.

b) Whether to pursue international growth, particularly in Asia, or to align with the "America First" policy by focusing on domestic production.

Harley-Davidson's innovations, such as fuel injection and liquid-cooled engines, are examples of improving Operational Effectiveness. According to the sources, why is this insufficient to solve the company's core problem of an aging customer base?  a) Because improving products (OE) does not address the fundamental strategic problem of a shrinking target market, which requires a new strategic position. b) Because Japanese competitors can imitate these technologies too quickly. c) Because these innovations make the motorcycles too expensive for millennials. d) Because the U.S. government penalizes companies for improving too quickly.

a) Because improving products (OE) does not address the fundamental strategic problem of a shrinking target market, which requires a new strategic position.

In a SWOT analysis of Harley-Davidson, its over-reliance on an aging and shrinking demographic of "overwhelmingly white, male and middle-aged" baby boomers would be classified as a critical internal ____. a) Strength b) Opportunity c) Threat d) Weakness

d) Weakness

The "America First" policy and the president's use of "tweet-based policy making" that could erase billions in market value represented what kind of external factor for Harley-Davidson? a) Opportunity b) Strength c) Threat (specifically, a political threat). d) Weakness

c) Threat

The U.S. withdrawal from the Trans-Pacific Partnership (TPP) was considered "bad news" for Harley-Davidson because it eliminated a significant external ____ to reduce high tariffs in key Asian markets. a) Strength b) Opportunity c) Weakness d) Core Competency

b) Opportunity

Harley-Davidson’s iconic brand recognition and its 53.1% U.S. market share in its category are primary examples of which element in a SWOT analysis? a) Strength b) Weakness c) Opportunity d) Threat

a) Strength

The lesson from Kodak's failure is most relevant to Harley-Davidson's situation because Kodak's demise was caused by its inability to embrace a new business model (online photo sharing) that threatened its profitable legacy business (film). What is the parallel risk for Harley-Davidson? a) Failing to invent an electric motorcycle. b) Not investing enough in improving engine performance (Operational Effectiveness). c) Acquiring a competitor, just as Kodak acquired Ofoto. d) Clinging to its legacy "Made in America" identity and business model while failing to embrace the new business model required for global markets

d) Clinging to its legacy "Made in America" identity and business model while failing to embrace the new business model required for global markets

Harley-Davidson’s historical focus on serving the specific needs of the "rebel" persona—the "unshaven 'bad guy,' outlaw, and irresistible villain"—is a classic example of which of Porter's three types of strategic positioning? a) Variety-based positioning b) Needs-based positioning c) Access-based positioning d) Cost-leadership positioning

b) Needs-based positioning

If Harley-Davidson were to try to compete with low-cost Asian bikes on price and volume while simultaneously maintaining its premium, full-service position in the U.S., it would risk repeating the strategic error of ____, as exemplified by Continental Lite's failure.  a) Repositioning b) First-order fit c) Straddling d) Benchmarking

c) Straddling

Considering the concept of core competencies, what is Harley-Davidson's most identifiable competence, which is hard for competitors to imitate and provides the root system for its products? a) Its powerful brand identity, built on American ideals of freedom and rebellion, and its expertise in a specific type of engine. b) Its ability to manage a global supply chain efficiently. c) Its low-cost manufacturing processes. d) Its ability to respond flexibly to political pressure

a) Its powerful brand identity, built on American ideals of freedom and rebellion, and its expertise in a specific type of engine.

Why was Harley-Davidson’s establishment of assembly plants in India and Brazil a strategically important move?  a) It was primarily to take advantage of cheaper labor, a form of operational excellence. b) It was a political move to appease the Obama administration. c) It demonstrated a weakness in their U.S. manufacturing capabilities. d) It was a strategic choice to overcome prohibitive external threats (high import tariffs) and gain access to new markets

d) It was a strategic choice to overcome prohibitive external threats (high import tariffs) and gain access to new markets

The data showing that from 2006 to 2016, domestic motorcycle shipments decreased while international shipments increased, points to a clear external ____ for Harley-Davidson. ) a) Strength b) Weakness c) Opportunity d) Threat

c) Opportunity

According to Porter's concept of fit, Harley-Davidson's historical success came from a system where its brand image, dealer network, product design, and customer events all reinforced one another. Which order of fit best describes activities that are reinforcing, like marketing to both doctors and hotels in the Neutrogena example? a) First-order fit (simple consistency) b) Second-order fit (reinforcing) c) Third-order fit (optimization of effort) d) Fourth-order fit (strategic alignment)

b) Second-order fit (reinforcing)

The fact that millennials tend to associate the Harley-Davidson brand with their grandparents and prefer experiences over possessions is a significant external ____ to the company's traditional business model. a) Strength b) Weakness c) Opportunity d) Threat

d) Threat

One of Harley-Davidson’s five key objectives for 2017-2027 was to "grow international business to 50 per cent of its total annual volume." Pursuing this objective would force the company to make clear ____ regarding its domestic focus.  a) Trade-offs b) Core competencies c) Benchmarking exercises d) Mergers

a) Trade-offs

How could a perceptual map be a useful tool for CEO Matthew Levatich in this situation?  a) To determine the most efficient way to manufacture motorcycle parts. b) To chart the company's stock performance against the S&P 500. c) To understand how customers perceive the Harley-Davidson brand relative to competitors like Honda, Indian, and BMW on key attributes. d) To create a new company mission statement

c) To understand how customers perceive the Harley-Davidson brand relative to competitors like Honda, Indian, and BMW on key attributes.

The pressure on Harley-Davidson to add new products and serve new customers to offset declining sales in its core market illustrates what Porter calls the "____," which can blur a company's unique strategic position. a) The Productivity Frontier b) The Growth Trap c) Competitive Convergence d) The Razor and Blades Model

b) The Growth Trap

In the 1980s, the Reagan administration imposed a 45% tariff on imported motorcycles, which protected Harley-Davidson from Japanese competition. This historical event demonstrates the powerful influence of which external factor?  a) Social (customer preferences) b) Economic (recession) c) Technological (new engines) d) Political/Legal (government regulation)

d) Political/Legal (government regulation)

Harley-Davidson's marketing effort to host "garage parties" to attract more women riders is a direct strategic action aimed at addressing which internal Weakness? a) Declining net income. b) A narrow and aging customer base. c) Intense competition from Polaris. d) High employee turnover.

b) A narrow and aging customer base.

The statement that CEO Levatich's main role is to "define and communicate the company's unique position, make trade-offs, and forge fit among activities" reflects Porter's view on the core responsibility of ____ in strategy. a) Operations management b) Financial stewardship c) Leadership d) Human resources

c) Leadership

The case notes that union leaders might revolt if Harley-Davidson builds a new plant overseas. This highlights a potential challenge from which group? a) Internal stakeholders (employees/unions) b) External stakeholders (customers) c) Shareholders d) Government regulators

a) Internal stakeholders

A perceptual map of the motorcycle market might plot competitors on axes like "Traditional vs. Modern" and "Affordable vs. Premium." On such a map, a cluster of competitors like Honda, Suzuki, and Yamaha would indicate they are in a direct battle for the same customers, creating intense competition for Harley-Davidson. a) A strategic alliance. b) A market that Harley should avoid. c) A sign that the map is one-dimensional. d) An area of intense competitive rivalry.

d) An area of intense competitive rivalry.

The fact that Harley-Davidson's stock was underperforming the S&P 500 index during Levatich's first two years is a clear internal ____ related to financial performance. a) Strength b) Weakness c) Opportunity d) Threat

b) Weakness

If Harley-Davidson were to market smaller, more affordable bikes exclusively in the dense urban centers of Asia, it would be an example of which of Porter's positioning strategies?  a) Variety-based positioning b) Needs-based positioning c) Access-based positioning (segmenting customers based on geography and how to reach them). d) Product excellence positioning

c) Access-based positioning (segmenting customers based on geography and how to reach them).

The challenge for Harley-Davidson is similar to that faced by McDonald's, where shifting consumer preferences (millennials wanting experiences, McDonald's customers wanting healthier food) are a major external ____. a) Threat b) Opportunity c) Weakness d) Strength

a) Threat

The case describes a complex system of international competition, domestic politics, changing customers, and internal capabilities. For Levatich to succeed, he must distinguish between the operational agenda (improving efficiency) and the strategic agenda, which involves defining a unique position and making clear trade-offs. a) Marketing agenda vs. financial agenda. b) Legal agenda vs. public relations agenda. c) Short-term agenda vs. long-term agenda. d) Operational agenda vs. strategic agenda.

d) Operational agenda vs. strategic agenda.

Harley-Davidson’s vast international distribution network, selling in 97 countries through approximately 1,461 dealerships, is a significant internal ____ that could be leveraged for global expansion.  a) Strength b) Weakness c) Opportunity d) Threat

a) Strength

According to Porter, continuity is important for a strategic position. The fact that Harley-Davidson is considering a major shift towards international markets could be costly because it would require not just changing individual activities but also... a) Changing the company's name. b) Re-aligning entire systems of activities. c) Firing the entire U.S. workforce. d) Abandoning the company's core competencies.

b) Re-aligning entire systems of activities

Porter argues that strategy is about choosing what not to do. For Harley-Davidson, a clear choice to prioritize international growth would mean choosing not to... a) Innovate its engines. b) Market to millennials. c) Fully commit to a domestic-only manufacturing footprint to appease political pressures. d) Pay its CEO a competitive salary.

c) Fully commit to a domestic-only manufacturing footprint to appease political pressures

In the Mintel survey of young riders, Honda was the most commonly owned brand, slightly ahead of Harley-Davidson. This data point represents an external ____ from a key competitor. a) Strength b) Weakness c) Opportunity d) Threat

d) Threat