Case Study On Harley Davidson Company: Internal And External Economic Environment Analysis

Part 1

In current era, business industry is one of the fast growing across all over the world, thus it directly impacts on economy of the country either positive or negative in nature. Therefore, it is necessary to be managed and control all over business activities and operations with the help of appropriate method and techniques so that employees of the company will significantly perform their tasks and achieve their goals and objectives in a systematic style. In the other hand this report basically based on Harley Davidson Company (Zikmund and et. al., 2013).  Basically, it is one of the leading and largest motorcycle companies of America which founded in 1903. It is the public company which controlled and regulated by the government of the country as per their rules and regulations. This report will be discussed about actual background and introduction about the selected organisation as well as will be elaborated its services and products in a effective and efficient manner. In the other hand, will be explained internal and external environmental factors which might be directly impacts on organisation either positive or negative in the nature.  In this last, will be effectively explained potential impacts of company on economic environment of the business firm in a systemic manner.

Introduction to company

Harley Davidson Inc. is one of the American motorcycle manufacturers. It deals in the business of manufacturing of different ranges of bikes. It was founded in the year 1903 in Milwaukee Wisconsin US. It is a type of Public limited company (Fu, Pietrobelli and Soete, 2011). It is has made its brand name with its business of over 114 years. It was founded by William S. Harley, Arthur Davidson, Walter Davidson and William A. Davidson. Right now it’s headquartered is in Milwaukee and the serving president is Matthew Levatich. Its present times revenue is around U.S. 5.25 billion dollars, with around operating income of 1.1 Billion Dollar. It is having net income 795.53 million U.S Dollar. Total equity is around 2.909 billion U.S. dollar and having total assets of 9.40504 billion U.S. Dollar (as per 2014). It is employer of around 6400 employees. It is operating with its subsidiaries named as Harley Davison EMEA, Harley Davidson Brazil, Harley Davidson India and Harley Davidson Asia. It is one of the two motor cycle manufacturing company that have survived the great depression (Asheim,  2012). It factures its motorcycle at the factories in Pennsylvania, york; Milwaukee, Wisconsin; Kansas city, Missouri; Manaus, Brazil; and Bawal, India. APart from manufacturing  motorcycle company markets its merchandise under the Harley Davidson brand in which it sells apparel, ornaments, home décor, toys, accessories and scale figures of its motor bikes as well as it also started its business of customized bicycles (both for ladies and men )in the year 1917. But this was discontinued in the year 1923 because of disappointing sales. Right now it is the world fifth biggest global player in the market of Motorcycles (Johansson and Karlsson,  2011).

Figure 1Harley Davidson

History

(Source- Ride it believe it, 2017)

History

In 1901 William S. Harley a 20 year old made a plan for small engines with a slight displacement of 7.07 cubic inches with a flywheel of 102 mm. It was designed for use in regular pedal bicycle frame (Spence, 2011). In the next two years all four founders worked on developing their developing their first powered motor cycle. They got help from the outboard motor pioneer Ole Evinrude. It’s first advertisement was placed in the year 1905 in a journal that publishes news about Automobile and Cycle. From where they got there first dealer Carl H. Lang of Chicago who sold its three bikes. Later in the time of World War 1U.S military purchased around 20,000 vehicles motorbikes from Harley Davidson. Till 920 it has become the largest manufacturer of bicycle. Later in the time of great depression in 1930’s its sale doomed from 21000 in 1929 to 3703 in 1933. After surviving this great depression the company again played a major role in the World War 2 as it supplied a large number of vehicles to U.S. army approx., 90000 military vehicles. Is first overseas manufacturing plant was in Brazil in the year 1998.

Mission statement of Harley Davidson

Its mission statement shows the firm’s approach and aim to develop its business as it states that we fulfill dreams through the experiences of motorcycling, by giving to general public and motorcyclists an enlarged and expanded range of motorcycles as wee as branded products and services in the selected market segments (Damro, 2012). There are following elements in the Harley Davidson mission statement:

1. Fulfilling dreams the dreams of people through motorcycling.
2. An expanding line of products and services using its service centers.
3. The selected market segmentation.

Its mission statement underlines the company’s approach to expand its business and the approach that it will follow. For example firm utilizes the dream fulfillment and experiences of motorcycling as the basis for attracting consumers to penetrate markets. It also emphasizes the significance of expanding its product mix. It also talks about market segmentation which Harley Davidson uses to focus on certain group of consumers. It also points to the strategic objective of maintaining a strong brand related motor cycling culture to attract and retain consumers (Ride it believe it, 2017).

Vision Statement of Harley Davidson

Its vision statement states that it is an action oriented globally operating firm who is a leader in its commitment to continuously improve their mutually beneficial relationship with their stakeholders which includes customers, employees, suppliers, government, shareholder and society in which it is operating throughout the globe (Panic,  2015). Harley Davidson believes the key to success is to maintain the balance interests of stakeholders through empowering all the employees to focus on value added activities.

This vision statement reflects the firm culture value as well as business strategies. There are several Parts or elements of Harley Davidson vision statement:

• It aims to provide action oriented business.
• It talks about company’s international scope.
• It shows its leadership in stakeholder management.
• Employee empowerment
• Value added activities inside the firm.

This vision statement through the lights on the necessity of action oriented approach in the business development. This also highlights the firms aims to succeed internationally that indicates plans for further expansion in the global market for motor cycles and related products. APart from this it also signifies the company’s commitment to satisfy the interests of stakeholders. Doing so they want to increase their relationship with its stakeholders in the form such as it empowers its employees (Bulmer and Paterson, 2013). This had made it survive in the present throat cutting competition from its other manufacturers.

Mission statement of Harley Davidson

Aim and Objective of the organization

• It aims to become the largest producer in the motorcycle market.
• To fulfill the requirements of all its stakeholders (Figueiredo and Brito, 2011).
• To expand its business in many other Parts of the globe.
• To maintain its brand image by maintaining the quality of product and services it is offering.

Discussion on its Internal Economic Environment of Harley Davidson

Internal economic environment

This company is operation in the business of making motor cycles from around 114 years. In so many years of its operation company has seen many up and down in the internal economic environment. It has seen the rise and fall of its revenue generation capacity as well as the overall productivity (Beckes, and Coan, 2011). It is one of those two American Motorcycle manufacturing company that has survived the great depression of 1930’s. Even after so many years of business the present economic condition of the world has posed many challenges towards the company’s growth. It is not that the internal economic environment just decided by the sail it is making with its products or services or the revenue it is generating from its operations. There are various elements that shape internal economic condition of the company. Some of them are as follows:

Stakeholder’s interest: There are several stakeholders that are attached with the company and it’s the aim of the company to manage its beneficial relationship with them. This has helped the company in the times when the company was facing financial crisis. In the present time the salaries of the employees that are working in it is very high. This company has taken several steps so as to ensure that the stake holders as well as the shareholders are making maximum profit of the company business.

Cash flow: There had been a consistent cash flow in the operations of that company. It has increased the manufacturing capacity by investing a lot on the production process. In its subsidiaries all around the globe the company has maintained the cash reserves so that there are no interruptions in the operations of the company. Since the methodologies are changing and are requiring heavy amount of cash to be invested in the manufacturing hence the company has also taken care of this factor (Ju and Wei, 2011).

Asset management: This Company has invested a lot on the assets that it has. It helps to make the working conditions extremely suitable for the employee to conduct their working activities. This one of the integral Part of managing internal economic environment.Assets refer to as the machineries, workplace, showrooms as well as the land on which all these are placed on.

Production costing: This Company aims to maintain the perfect balance between the profit and production cost. It has implemented many of the new technological advanced machineries and software so as to reduce the cost of production (Wang and et. al., 2011). APart from this Harley Davidson is using the processes that save money in the production process. The concepts such as lean production and just in time have been used so as to reduce the amount of waste generated as the lot of money is wasted on handling the waste. Use of circular economy has made company to reduce its cost of manufacturing.

Resource handling: This Company has invested a lot on the resource handling. As they understand the benefit of utilizing its resources in a sustainable manner. This resource handling also relates to the ways in which company is investing so as to generate the new resources (Gilpin, 2016). APart from this there is one important resource that this company has i.e. human resource. This company has a large set of skilled laborers and hence company has maintained their life standards by increasing the salary of the employee on timely basis. This has helped to reach the employee satisfaction level. This was a problem in the year 2007 when there was a strike in the month of February about the expiration of the union contract. In its plant at York, Pennsylvania about 2007 employee have gone for strike as they were not agreeing on the wages that has been decided between the two. It has disrupted its national production as it was its largest plant.

Vision Statement of Harley Davidson

Internal activities: There are many operations that are going on in the company. Marketing is one such activity where large amount of money that is required. This company to invest a lot on the advertisements so as to maintain its product demand. Marketing helps a lot in increasing the product sale (Ball, 2014). This company also has to invest on the advertisement campaigns as well as on the market research so as to know the demands of the employees.

There are several factors that shape the internal economic environment of the company:

• Political policies: The policies that are made by the government effect the internal economic environment. Like the labor contract and the pay scale that is decided by the government affects the internal economy of the company (Boons and Lüdeke-Freund, 2013). The taxes that are imposed by the government on the production and selling of the product and services are causing the same effect on the economy of the company.
• Society and culture: as this company do not have many of the subsidiaries so this is not very much affecting the internal culture of the organization but still it has a considerable impact on the internal economy (Michelini and Fiorentino, 2012). This can be understood by the fact that in the employees that come from the local society has different kinds of demand related to the life style well as salaries. Like in the country like India the employees have to be paid less as compared to the salaries that it has to give to its worker. The requirement of the employees related to the work place is also governed by the culture they are coming from.
• Technological demands: There had been great advancements in the technology used in the manufacturing sector. The production process has become fully automated. This has both positive as well as negative effect on the internal economy of the firm as the technology that is associated with the manufacturing is of higher cost but if ones invested then the overall production cost comes down which helps in increasing the profit margin of the firm (Martin and Sunley, 2014). There is one very big problem that is associated with i.e. the technology gets doubled in every six months hence the investment that is required for this purpose is very high.
• Production process:The internal economy also depends on the type of production process that is used inside the firm. Process like Lean production helps company to reduce the amount of money that is spent on the waste management. It is one of the most important factor that decides the internal economy.
• Research and development: This process is important for the company as it helps to main the market demand. But research requires a whole lot of money.  There are many researches that are going on in the Harley Davidson. This company is investing in the researches that support green production as it is the future of the manufacturing industry.

All these factors are effecting the internal environment of the company. Harley Davidson needs to manage all these factors so as to reduce the negative impact of these factors on the company.

Strengths

• Strong brand image: This Company has a very strong brand image in the whole world which felicitates in its business expansion. It has transformed itself in the cult brand and positioned itself in niche segment of cruiser bikes with high cc engines.
• Hog rallies: This Company has its own rallies which is one of the best promotional campaigns that invite Harley Davidson owners from all around the world.
• High customer pull: Its distinguished strategies of promotion and branding have helped Harley in creating a strong customer base.
• Product range: It has having high variety of product portfolio and in order to combat with the ageing problem of its base customers this company has decided to launch new bikes that promise to younger diaspora.
• Experience in the market: This Company has an experience of over a century to operate in the global business of motor cycles and hence a large number of stake holders are associated with the company.

Weaknesses

• Outside US it has its only manufacturing plant in India and one assembling plant in Brazil which makes the price of exporting bikes higher and hence they are unable to become common man bikes.
• It has single relying supplier which is unable to fulfil product demands at the right time.

Analysis of external economic environment

This company is operational in many Parts of globe which has made the external factors more important in determining the overall profit of the organization. One of the best way to understand the overall impact of the external factors it is needed to consider those the factors that will shape the external economy (Gandolfo, 2013). There are various elements that is associated with the external environment. Some of them are as follows:

Revenue compared to competitors: It stands on the fifth number in the rank in terms of revenue that is generated by the firm by its operations. Since the competition that this company is facing is very high so the revenue has been fluctuating over the years (Li, Liao and Liu, 2015). In the modern times the competition is throat cutting and hence this is one of the biggest problem. In the year 2012 there had been decrease in the sale of its motorbikes which resulted in the decrease in the revenue. The competitors are making several strategies that are reducing the profit margins of Harley Davidson. There had been many Japanese manufacturers that have captured the larger market (Ahmed, 2011). This is due to the fact that competitors have focused on producing the vehicles that are of lower cost but this company is producing cars that are of higher range.

Industry: This industry is expanding at a faster speed. With the increase in the demand of luxury and sports bike there is chance that this company can make maximum amount of profits. There are many companies that have come up in this industry which has made impact on the revenue generation of the company (Brown,  Martinsson and Petersen, 2012.). In this industry it is on the fifth rank in terms of market share that it captures.

Return on investments: The return on investment for this company has been on the higher sides as the strategy that has been made by the company for the investment is one the higher side. Its policy of expanding in the Middle East has increased the overall revenue of the company.

Corporate social responsibility: This Company has higher corporate social responsibility. This has burned on the profit generation of the firm.

There are many factors that influence the external economic environment of the company:

• Political: The political policies are changing throughout the world hence it has made a greater impact on the operations of the company which has impacted on the company operations. The taxation laws and operational tariffs have been changing regularly. It has reduced the profit margin of Harley Davidson. This company has to make many political tiesso as to control its influence (Tomich, 2016). The laws related to the employment and basic pay scale has made greater impacts on the company. There had been increase in the fuel prices which has resulted in the decrease of the sale of the company.
• Social: Society is changing throughout the world and hence this company needs to make changes in the working culture as it helps to forecast the profits that it can make (Oxaal, Barnett and Booth,  2013). There has been continues increase in the demands of luxury bikes and vintage look motor vehicles that has made positive impact on the company. Since these is continuous rise in the income of the people living in the society hence the sale is expected to increase in the coming years. There is one more factor that since this company has bigger brand name hence there are large number of customers that are buying cited company products aPart from the motor bikes. This matter of status as the bikes made by this company has higher price tags which help them in generating more revenue (Wang and et. al., 2013).
• Technological: Due to continuous advancements in the technology throughout the world this company has to invest a lot on the use of technology in its various operations. From production to managing information and communication technology inside the firm there is continues requirement of investment (Dopfer, K and Potts, 2015). This has reduced the margins of profit that this company can make. It is fact that technology reduces the overall cost of operations and helps to fight with the competition in the market hence it is necessary to invest in it on regular basis.
• Environment: There had been a continuous demand from the side of the people to invest in the types of bikes that are environment friendly. Governments all around the world have pushed companies to make use of production process that generates less waste. This has resulted in the overall revenue of the company. Due to environmental policies it can be seen that Harley Davidson has o invest a lot on the green technology. This is a costly process as high amount of cash is needed for the researchrelated to this (De Silva,  2012. ).Due to its investments in environment friendly technology that this company has passed all the pollution checks and has certified by various governments for its cleanup programs.
• Economic crisis: The economic condition of the whole world is fluctuating at higher speeds. There had been many cases of economic failures all around the world in the past few decades. The slowdown in the American economy and the crisis that is faced by the European economy has reduced the amount of sale that it forecasted before (Malecki  and Oinas,  2017). As this economic fall is making people think about paying so high on the company products. As Europe and America are two biggest markets of the company hence there economic condition is a matter of concern for the company. This has reduced the overall revenue of the company. According to research the brand value of the company has fallen down to 4.3 billion dollars in the year 2009. Hence it has decided to make cost cuts in production that sums to around 54 million dollars and thereby closing two factories and eliminating around 3500 employees from its total workforce. All these factors need to continuously analyze by the Harley Davidson so as to ensure that there is sustainable growth in external economy of the company.

Opportunities

• There are many developing nations in Asia and south Asia pacific which are developing. It provides a very good market for the company and its product sale.
• It they focus on the new generation customers with lower cc bikes it can be highly beneficial.
• It can focus on bringing vehicles for women who are in large number.

Threat

• Myopic approach: Being market myopic can affect Harley brand. As its most of the sale approx. 65% in US, this over defense may lead to internal distress.
• Substitutes: There are many Japanese and other competitors that have come up in this industry which is providing cut throat competition.

 Analysed of the impact of the external environment on the company

Every business firm has its own working style and system as per that they perform their works and operations. Due to this, as per their work they prepare their management system, working style, polices, rules and regulations, which are have to effectively followed by employees of the company. So that they can systematically achieve their targets and goals in an effective and efficient way (Kilambi, Laroche and Richard, 2013). APart from this, it is necessary to be managing and controls all over business activities due to this every staff members will significant perform their tasks and operations with better and effective quality. In the other hand, business environment categorised in to two Parts such as internal and external. These both are directly impacts on organisation which may be positive or negative in nature. Therefore it is necessary to be effectively analysed and evaluate environmental factors with the help of methods and techniques. Due to this, company can get success in competitive market place as well as they can set a brand image at worldwide level. Environmental factors are directly impacts on company as well as its profitability and productivity. Therefore, it is required to be systematically analysed and evaluate all major factors in a systematic style. Due to this company can get appropriate decision as well as manage all over difficult situation within the business firm (Audrino and Trojani, 2011). APart from this, Harley Davidson is one of the largest and leading motorcycle companies of America. It provides high and effective quality of bike to customers with smart features and standard. Due to this, it’s already set a brand image across all over the world. Thus, this business firm also have two types of environments such as internal and external which directly impacts on its working style and revenue. In the context of internal environment, in which included company’s working style, management system, employees, employers, rules, regulations, polices and so more. In the other hand, external environment helps to define, customers, suppliers, economic condition, political issues, social ethics and norms, environmental condition, competitors, economic condition of the country and so more. All these factors are uncertain in nature because they are depends on market situation and condition which is also unstable in nature (Zhou and et. al., 2012). Thus, it is necessary to be systematically analysed and evaluated all these factors because it may be impacts on business firm either positive or negative in a manner. Thus, PESTEL analysis method can be used for analysing and examining the external environment of Harley Davidson in a systematic manner. In which included six contents such as political, economical, social, technological, environmental and legal which all are explaining under follows:

Political factors:Political environment of the country directly impacts of company’s working system. In which included governmental rules and regulations which have to be followed by the company in an effective and efficient manner. Sometimes rules and political conditions of the country affect business management and working system. Due to this, it is necessary to be systematically analysed and evaluate all political issues and factors with the help of systematic methods and techniques. Part from this, in the context of Harley Davidson there are explaining the major factors which affects on selected organisation either positive or negative in nature such as follows:

1. Free trade agreements
2. Increasing support for e-commerce

Increasing inter-governmental support for patent protection. In the other hand, this company has some benefits from free trade agreements of government because with the help of them. It can be effectively expanding their business firm across all over the world as well as effectively provides their bikes and services to customers as per their expectations and demand in a systematic way (Stokburger?Sauer, 2010).  It is one of the major and important sources of expanding business firm at word wide level. But sometimes political factors creates some difficulty and problems for this organisation due to this its employees cannot effectively perform their tasks due to this its productivity and profitability may be decreases in a effective and efficient way.

Economical factors:It is one of the major factor which impacts on company that may be positive or negative in nature. Therefore, it is necessary to be effectively analysed and evaluated the economical factors on the motorcycle market of the countries.  Basically this is the important component of the PESTEL analysis method. Thus, economic condition of the company depends on market condition and situation which is also unstable in nature. In which included some important terms of the economy such as exchange rate, currency, inflation rate, taxation system and so more. All these terms of the company directly impacts its business firm as well as its working system. Thus, there are explaining the major economical factors of Harley Davidson such as follows:

1. Economic unstable of major markets
2. Economic growth of developing countries
3. Stable credit accessibility. APart from this, economic instability shows the growth and several opportunities for Harley Davidson due to this, it can be expand their business firm at national and internal level. In the other hand, economy growth is one of the major opportunities for the business firm because due to this every company can expand their organisations well as increase their revue in an effective style. In the context negative manner, while economic condition becomes decrease of any target market as well as country so that respectively reduces to the profit level and sales of the company. Hence, it is necessary to be systematically analysed and evaluated economic condition of economic with the help of appropriate methods and techniques.

Social factors:In the context of this factor in which included person’s life style, occupation, society ethics, norms, living style, income level attitudes, behaviours and so more. Sometimes all these factors are also impacts on business firm either positive or negative in nature. Thus its necessary to ne examine society as well as person’s living style. Therefore explaining the major social factors of Harley Davidson such as follows:

1. Increasing attitudes about leisure
2. Enhancing involvement of women in chopper
3. Increasing attitudes about green technology

Technological factors: Technologies are essential in any kind of business because without technologies and machinery any business cannot get success in competitive market place as well as cannot systematically provide better quality of services and products to customers as per their needs and expectations (Madupu and Cooley, 2010). Thus, there are demonstrating the major technological factors of Harley Davidson such as follows:

1. Increasing the availability of green technologies
2. Moderate R&D investments in the motorcycle industry
3. Increasing use of computing technologies in vehicles

Environmental factors: In the context of climate or environmental factors there are included some contents such as carbon, climate changes, business sustainability and so more. All these factors are directly impacts on business firm either positive or negative in nature. Therefore, it is necessary to be systematically, analysed and evaluate environment of the country and area before starting and establishing firm. In the context of Harley Davidson, there are explain the major environmental factors such as follows:

1. Increasing the interest in business sustainability
2. Low carbon lifestyles
3. Climate changes

Legal factors: This is the last important component of PESTEL analysis tool in which included legal rules and terms, which regulated and enacted by government of the country. APart from this, it is necessary for every business firm have to effectively follow while establishing the business firm in any kind of markets at national or international level. Legislations and governmental rules and regulations help to control and reduce illegal activities and situations from the business firm in a effective and efficient manner. APart from this all these factors should be systematically analysed with the help of appropriate methods and techniques. It helps in decision making process as well as it the help of them company can get success as well as can achieve their goals and objectives (Ortiz and Harrison, 2011).

Economy of the country represent its financial capabilities and powers thus, as per the economic conisation of the nation can easy to identify the position and status in a effective and efficient manner. Therefore, before establishing any business firm in competitive market place have to be analysed and evaluate the actual and current market and economic condition of the country with the help of appropriate methods and techniques (Rohm and et. al., 2012). It helps of take appropriate decision by employers of the selected business firm. Proper analysing and evaluating helps to increasing profitability and productivity of the enterprise. Due to this, it can significantly compete with their major competitors as well as they can set a brand image at national and international level. APart from this, environmental condition of the nation depends on economy of the nation because it’s unstable in nature due to this sometimes sales and profitability of the business firm increased or decreased. Therefore, with the help of systematic methods and techniques must be effectively analysed all the economic factors in a effective and efficient manner. In the other hand, as peer above define economic factors included several important terms such as exchange rates, inflation rate, monetary policies, taxation system and so more. All these terms are regulated and controlled by government of the nation as well as it depends on market condition (Bagozzi and et. al., 2012). APart from this all these terms are unstable in nature due to this it is necessary for every business firm must be systematically analysed them with the help of appropriate methods and techniques. Proper analysing and evaluating helps in decision making process as well as with the help of them company can get success as well as achieve their goals and objectives. In the other hand, Harley Davidson is one of the leading and largest motorcycle companies of America. It provides high quality and features of bikes and services to customers across all over the world. APart from this, it is necessary to be effectively analysed and evaluated its economical factors with the help of suitable methods and techniques due to this, employers of the company can take appropriate decision regarding investing fund as well as expanding business firm in different areas of national and international level. In the other hand there are explaining the actual and effective potential impacts of company on economic environment of the business firm which may be positive and negative in nature. Therefore, it is necessary for employers of the selected organisation must be systematically analysed with the help of appropriate methods and techniques in a effective and efficient manner. Thus, proper evaluation and analysing helps in decision making process as well as with the help of them systematically can get success also they can achieve their targets and goals in a effective and efficient way.

In the context of current time, Harley Davidson is one of the leading companies of UK thus there are explaining the potential impacts on economic environment in an effective and efficient manner such as.

Figure 2 logo of Harley Davidson

(Source- Vats 2017)

• Wide economy Moat driven by Brand loyalty, rider community and HOG’s Dealer network
• Strong free cash flow generation and consistently high return on equity
• Capable management

Company overview

Harley Davidson is a fastest growing motorcycle manufacturer and seller at worldwide level. Basically it was founded in 1903. Today this company become dominant due to the heavyweight. This organisation sell their products and services by the independent sellers across all over the world. This company of total revenue of this company is 74% which is generated in US and 12% is generated in EMEA. APart from this, the major income of this company is generated from Canada, Australia and Japan (Granitz and Forman,  2015).

In the context of this current situation of this company is, revenue and income of this company is become decline due to the heavy weight. Thus, 54.9% to 50.9% in 2016. APart from this, all customers are focuses on the features, quality, weight and other important things in product n bikes of Harley Davidson which helps to set mind of customers towards products and services. That may be positive or negative in nature due to this it is necessary to be analyse customer’s demand and expectation and it is necessary must be provide and manufacture products and services as per their needs (Harley offers rare incentives to shift bike overhang: dealers, 2017). As per the current situation of Harley Davidson become decreases behind the reason of this situation is heavy weight. Thus, bikes of this company does not easy to handle and ride by every person due to this, its income and sales decreases.

Investment thesis

In the context of investment thesis it helps to represent how it is investing the fund in which sectors as well as with strategies. Basically, this company is classical American brand due to this, selected organisation selling bikes and services in the classical manner which helps to represent religion, culture, high quality, standard and royal life style. Therefore, this business firm has been able to attract high number of customers towards bikes (Vivek, Beatty and Morgan, 2012). Thus, it can be promote their services and bikes through the customers additionally they also wear t-shirts, the jackets, and the hat of Harley Davidson. APart from this, selected organisation directly impacts on economic environment of the business firm which may be positive or negative in nature therefore it is necessary to be adopt and use appropriate strategies and methods within the business firm because appropriate business strategies and methods helps in increasing profitability and productivity of the company. In the other words, its potential impacts on economy is, it seeks to be attract high number of customers towards organisation due to this respectively increased the sales and revenue of the firm. It helps to enhance standard of living of society’s persons as well as living them appropriate life style. Due to this thy can effectively enjoy their rides and trips. Thus, it is also focuses on to adopt high quality of technologies and innovative ideas so that they can supply better and attractive bike to customers with attractive style and better features, quality of services and bikes assist to increase profitability and productivity on the business firm. In the other hand, it is necessary to adopt smart techniques and strategies in the working system as well as provides necessary services and facilities to all over employees of the company so that they can effectively complete their tasks and achieve their objectives and goals in a effective and efficient manner (Hartley and Claycomb, 2013).

This company using and adopting premium positioning and efficient manufacturing process in their working environment due to this it has strong cash flow generation process as company to others. Harley Davidson generate approximately $ 4Bn in the cumulative form off the last 5year as well as total ROI of this company is 28.4% over the last 5years. Moreover, it is necessary to be adopt and use appropriate methods and strategies in the working system because employee’s working performed and their style totally based on management system of the business firm. Additionally, company’s profitability and productivity are also depends on employee’s working perform and quality. Due to this, it is required to create and implement appropriate management system within the organisation because it aids to increase working performance and their involvement. So that respectively increased the profitability and productivity of the organisation in a systematic style. APart from this, appropriate methods and techniques are the best sources of increasing sales and revenue of the company as well as with the help of them it can be expand their business firm at national and international level (Hollensen, 2015).

Conclusion

From the above mentioned report it has been concluded that Harley Davidson is one of the leading and largest motorcycle company of America. It provided high quality of bikes and services to customers a worldwide level. APart from this, it has been explained about company’s background and its provided services and products to customers such as bikes. Additionally, there has been discussed about internal and external environmental factors of this company which directly impacted on the business firm either positive or negative in nature. Due to this, there has been used PESTEL analysis tool or technique. With the help of this method has been effectively analysed and evaluated the macro environmental factors such as political, economical, social, legal, technological and environmental. In the last has been defined and examined its potential impacts on economic environment of the country. APart from this, there has been represented, proper analyses and evaluation is one of the best and effective method for every business firm because it helps in decision making process as well as with the help of them can significantly manner. Additionally has been discussed its current market situation as well as its future plan and vision.

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