The Management of Harley-Davidson – Book Report/Review Example
The paper "The Management of Harley-Davidson" is a great example of a management book review.
The management of Harley-Davidson focused on rebuilding the methods they used in production as well as improving the work practices. They included the use of a new system such as that used by the Japanese firm “Toyota Just- In –Time”. Their pilot system on the same was built behind the rationale of reducing costs and inventories as well as improving on quality. The system referred to as MAN (Materials-As-Needed). After this step and with increased cooperation both in management and other workers the company returned to profit since there was an increase in sales and market share (Grant, 648).
The company faced the challenge of meeting the growing demand from its customers. It had to increase its capacity in production, set up new plants, and expand internationally as well as to launch new motorcycles models. In 2009, Harley-Davidson aimed at strengthening its brands (Grant, 639). The appeal on the brand was important in marketing the company as well as being central in its’ developmental strategy. This would ensure there is extended and reinforced the relationship with its consumers. In 1983, the company formed Harley Owners’ Group so as to increase the consumers’ involvement. Sales after enrolling this program were based more on loyalty. For instance over half of the sales were from those who had previously owned their products. This had deteriorated and there was a need to launch a new strategy aimed at restoring customers’ confidence.
Lagging behind in technology has been a major threat to its continued success compared to her competitors such as Honda and BMW. The small size in corporate and the inability to have shared R&D across to bikes and cars limited it to investing in new products and technology. Reconciling differentiation of products with economies of scale is also a challenge. Harley’s solution was based on offering a wide variety of customized option with standardized key components (Grant, 647). Harley had low volume productions which impose higher costs compared to her competitors.