Module 1 - Case Strategic Management: Mission, Vision, and Stakeholders Assignment Overview Harley-Davidson: A Unique, Loyal Stakeholder Base In this course we are going to be looking at Harley-Davidson Motor Company from a strategic management perspective. This organization is quite unique in that it has worked very hard through the years to build its brand and has acquired a loyal following. This loyal customer following has actually been quite a phenomonen and many have even identified it as "cultlike." That is to say, H-D is unique, particularly from a stakeholder perspective. The corporation is now reaching to other countries in an attempt to expand its niche across borders and oversees. There is a lot of competition in the motorcycle market. Some competitors include Kawasaki, Yamaha, Suzuki, Indian, Victory, BMW and Triumph motorcycles. And although H-D dominated the heavy-weight motorcycle market in America for many years, in recent decades many of the above mentioned competitors have developed cruisers and touring bikes of their own, emulating H-D’s bikes to include a V-twin engine design. Case Assignment For this assignment, you are to read the information in the background material, spend some time getting a feel for H-Ds history, strategy and key stakeholders, and then write a 3- to 4-page report for your professor and the executives of Harley-Davidson by addressing the following assignment requirements: Discuss to what degree you believe Harley-Davidson is currently proceeding towards its mission, vision, and values. Identify two or three of H-D’s most important stakeholders and discuss whether Harley-Davidson’s current strategic direction is aligned with the needs of the corporation’s stakeholders? Please explain your reasoning. Based on your analysis and findings, what would you recommend to the executives of Harley-Davidson? Why? Please explain your reasoning. Notes: Please note that this is an advanced level course so you must show and demonstrate your ability to provide a well reasoned response. Also 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 discussing: Your interpretation of H-D`s mission and vision. Your assessment of the stakeholders and their needs/goals. Your critical assessment as to whether H-D`s mission and vision takes their stakeholders into account. Your recommendations to H-D executives. 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? BACKGROUND Module 1 - Background STRATEGIC MANAGEMENT: MISSION, VISION, AND STAKEHOLDERS If you cannot locate an article in one set of databases (such as EBSCO), try to find it in ProQuest. Your assignment will be graded based upon the criteria explained in the Grading Rubric A Note on Required Reading: The readings in this course are all identifed as required reading. You should become familiar with all of these readings to become familar with the concepts presented. Your reading of the materials may vary from in-depth study to scanning materials that was previously covered in another document, to reviewing materials you have already read to prepare for a previous assignment. You are also expected to do your own research using Trident`s library and other sources. Background Materials In this first module we will come to understand just what a mission is, how a vision relates to the mission, and the impact this has on the stakeholders in the company (e.g., stockholders, employees, customers, etc.,). This is where strategic management begins. Strategic management is a companywide, long term plan of action designed to achieve organizational objectives that fulfill company vision. Strategies or strategic choices are courses of action that enable companies to reach their vision, goals, and objectives. Vision and Mission Statements Mission is the overarching goal of a company, the reason why it operates. For instance, automotive companies exist to make cars and provide transportation, Boeing to make planes and enable speedy long distance transportation, pharmaceuticals to make medicines that heal people. The mission represents the overall direction of an organization, identifying its main purpose: who are we? what is the main business? what do we make? Among the main responsibilities of leaders are: to develop a vision, articulate it, and communicate it to all stakeholders of a company. Vision statements serve several purposes. They set up the long term direction of the company (vision), they incorporate the goals of the main stakeholders (shareholders, customers, suppliers, employees), they express the main values of the management to be embraced by employees, and they describe the main goals. Goals and objectives divide the vision into achievable units at department levels for instance, that are further subdivided into smaller and smaller units, until they reach every employee`s desk. Goals are quantifiable and measurable, are important, and attainable. They can include deadlines and are expressed in terms of market share, revenue, profit. Some of the goals of each for profit company are: profit, shareholder wealth, or growth. With all this said, not every company clearly identifies their mission in a mission statement and a company`s vision may be difficult to readily discern as well. There are no hard fast rules or regulations when it comes to constructing and presenting mission and vision statements, only rules of thumb. As you read through the information provided on a given company`s website, for instance, you may not find a nice, neat representation of the company`s mission following the words "Mission Statement". Sometimes you have to ferret these things out for yourself based on the information provided. Stakeholders Please view the Presentation on Organizational Stakeholders. Stakeholders represent very important constituencies or groups of individuals who are part of an organization or associated with and organization. Organizational Stakeholders are groups of individuals who are engaged in an exchange relationship with the organization. Their contribution is necessary for organizational survival. At the same time, stakeholders have their own goals. It is important to establish the essential stakeholders and ensure that their goals are satisfied. There are internal stakeholders (employees, executives, the board of directors) and external stakeholders (customers, suppliers, communities, government). The main stakeholders are employees, customers, and stockholders. The interests of the stockholders are represented by the Board of Directors. Required Reading McNamara, C. (2011). Basic description of strategic planning: Including key terms to know. Retrieved August 2011 from http://managementhelp.org/strategicplanning/basics.htm McNamara, C. (2011). Basics of developing mission, vision and values statements, free management library. Retrieved August 2011 from http://managementhelp.org/strategicplanning/mission-vision-values.htm#anchor519441 The following PowerPoints are also useful to understand vision and mission of the company: Purdue University (n.d.). How are Vision & Mission Statements Used to Set Strategic Directions? Retrieved from: www.agecon.purdue.edu/extension/sbpcp/resources/vision.ppt Case Assignment Reading Here is a copy of H-D’s Annual Report for 2011 Harley-Davidson. (2012) Annual Report 2011. Retrieved from: http://media.corporate-ir.net/media_files/IROL/87/87981/HD.pdf You will find H-D’s mission, vision and value statements in the following document: Harley-Davidson. (2012). Everyday Values: The Harley-Davidson Code of Conduct. Retrieved from: http://media.corporate-ir.net/media_files/IROL/87/87981/Code_of_Conduct%20-%20English.pdf The following Web page will provide you with many links to H-D’s operations that are important from a strategic management perspective. Harley-Davidson. (2012). Quick Links (Investor relations page). Retrieved from: http://investor.harley-davidson.com/phoenix.zhtml?c=87981&p=irol-govhighlights&locale=en_US&bmLocale=en_US Here are some articles that will provide you with some history about H-D and will provide you with some idea as to efforts undertaken by the company in moving forward as an organization. Fred, (2008). A case study of Harley-Davidson’s business practice. Infotechdesign. Retrieved from: http://infotechdesign.net/itd/a-case-study-of-harley-davidsons-business-practices.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 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). Company Spotlight: Harley-Davidson Motor Company. (2006). MarketWatch: Global Round-up, 5(10), 14-19. (access via Trident’s library through EBSCO database).