Harley-Davidson Market in China
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As the project manager for Harley-Davidson prior to its entering China, what information would you have provided to the board of directors to lead to the decision to enter China?
Address the following constructs through your research:
Organizational purpose
Organizational goals
Performance measures
Consumer behavior
Global markets
Risk and return analysis
International risks
In the format of the executive summary providing specific information related to the seven constructs and noting advantages and disadvantages for entering the China market, at the conclusion of the summary,
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Solution Summary
This explanation provides you a comprehensive argument relating to Harley-Davidson entering the market in China
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As the project manager for Harley-Davidson prior to its entering China, what information would you have provided to the board of directors to lead to the decision to enter China?
Address the following constructs through your research:
Organizational purpose
The organizational purpose is to open up the Chinese market for Harley-Davidson and the other purpose is to set up manufacturing facilities in China.
The basic reason is that China offers a large market for Harley-Davidson motorbikes. There is brand recognition in China. Harley-Davidson enjoys popularity in the Chinese market. Currently, only the very rich can afford Harley-Davidson bikes because of the prohibitive duties that increase the prices of Harley-Davidson bikes.
Apart from the market for Harley-Davidson bikes, it is important for the company to set up manufacturing facilities in China. There are several reasons for this. Setting up manufacturing facilities will allow Harley-Davidson to make bikes at a fraction of its current manufacturing cost in the USA. The current manufacturing facilities in the USA are costly and not conducive to international competition. The tires are made in New York, the wheels in Australia, the pistons, engine and transmission in Wisconsin, the wiring in Pennsylvania, shocks in Japan and control modules in Midwest.
It takes a long time and cost if a customer specified colored bike is to be assembled. That apart, having a complete manufacturing facility in China will reduce the overall cost of manufacture. The main reason for this will be the lower cost of labor and raw materials in China.
Organizational goals
These goals are to increase the sales of Harley-Davidson internationally and to reduce the cost of production of ...
Education
- BSc , University of Calcutta
- MBA, Eastern Institute for Integrated Learning in Management
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