Analysis of the External Environment

Assignment 2: Harley-Davidson: External and Internal Analysis

Instructions for this assignment: Perform all of the elements listed below.

This assignment has you complete two parts of a strategic business plan. To see how those parts fit into a full business plan, clickfor astrategic business plan outline.

Part I Analysis of the External Environment

As part of the Strategic Business Plan, you have been asked to:

• Identify and analyze the major driving forces for change in the external environment of the motorcycle industry.
• Analyze the dynamics of competition using Porter’s Five Forces Model of Competition. Correctly assess the dynamics of competition.
• Provide at least three statistics about the size of the motorcycle industry such as revenue, growth rate, number of units sold by manufacturer/country, etc.
• Summarize the strategic issues firms in this industry face and identify their biggest threats.

This section should be titled “The Analysis of H-D’s External Environment.”

Part II Internal Environment Analysis

Financial

Gather the financial information necessary to do a complete ratio analysis and the Balance Score Card (BSC) key metrics information.

If you were going to create a BSC, what would be the key metrics you would measure in each of the four BSC areas?

• Financial
• Customer
• Internal Business Process
• Learning and Growth

Perform a ratio analysis using H-D’s five-year financial performance. Interpret the meaning of the ratios and financial performance.

This section should be titled “The Analysis of H-D’s Current Strategy: Two Views.” Be sure to include the ratio analysis. You may also include other graphics to support your narrative.

Competitors

Based on your analysis, you must decide which two competitors present the biggest competitive threat to H-D.

Perform a financial ratio analysis for the competitors after looking at trends in financial performance over five years, and compare the trends to industry averages.

Be sure you have a clear ranking of the industries’ competitors.

This section should be titled “Competitor Analysis.” Be sure to include the financial ratio analysis. You may also include other graphics to support your narrative.

This assignment should be 4 to 8 pages in length.

Strategic Business Plan Outline

Part I Feasibility Study

1. Cover page
2. Table of Contents
3. Executive Summary
4. Summary of Strategic Direction [Module 1]
   1. Vision
   2. Mission/ Corporate Values
   3. Goals
5. Stakeholders Interest/ Needs
6. Analysis of the External Environment[Module 2- Part 1]
   1. Results from Scanning
   2. Results from Monitoring
   3. Competitive Environment

i.Porters Five Forces Model

ii.Value Net Analysis

iii.Dynamics of Competition/ Competitor Analysis

1. 1. Strategic Challenges/ Issues facing the Industry
2. Internal Environment Analysis[Module 2 Part 2]
   1. SWOT Analysis
   2. Value Chain Analysis

i.Primary Activities

ii.Secondary Activities

iii.Resource Based Analysis

1.Internal

2.External

3.Achieving Sustainable Competitive Advantage

iv.Financial Ratio Analysis/ Five year period

1. Strategy Analysis [Module 3]
   1. Cost Leadership Strategy

i.Identify elements that could lead to sustainable advantage

ii.Advantages/ Disadvantages of this strategy

1. 1. Differentiation Strategy

i.Identify elements that could lead to sustainable advantage

ii.Advantages/ Disadvantages of this strategy

1. 1. Focus Strategy

i.Identify elements that could lead to sustainable advantage

ii.Advantages/ Disadvantages of this strategy

1. 1. Combination Strategy

i.Identify elements that could lead to sustainable advantage using several of Cost/ Differentiation/ Focus

ii.Advantages/ Disadvantages of this strategy

1. 1. Industry/ Firm Life Cycle

i.Strategic implications of each stage analyzed

1. Corporate Level Strategy [Module 3
   1. Identify consequences of Diversification

i.Economies of Scope

ii.Revenue Enhancement

iii.Market Power

1. 1. Identify unrelated Diversification

i.Financial Synergy

ii.Parenting

1. 1. Methods of achieving Diversification

i.Mergers & Acquisitions

ii.Strategic Alliances/ Joint Ventures

iii.Internal Development

1. 1. Corporate Ethics in Value Creation
2. Feasibility Study Summary
   1. Conclusions
   2. Recommendations
3. Appendix

Part II Strategic Plan

1. Cover page
2. Table of Contents
3. Executive Summary
4. Global Economy/ Factors Affecting Global Economy[Module 4]
   1. Motivations/ Risks

i.Motivations for Expansion

ii.Risks in Expansion

1. 1. Competitive Advantage in Global Markets
   2. Entry Strategies for Global Expansion
   3. Internet Approach/ Strategy

i.How the Internet adds value

ii.Internet Business Models

iii.Competitive Strategies

iv.

1. Corporate Leadership [Module 5]
   1. Direction Setting
   2. Organizational Design
   3. Organizational Culture
   4. Leadership Traits
   5. Ethical Organization Characteristics

i.Identify elements

ii.Identify missing elements

1. 1. Learning Organization Characteristics

i.Identify elements

ii.Identify missing elements

1. Strategic Plan Summary
   1. Conclusions
   2. Recommendations
   3. Implementation
   4. Risks
2. Appendix