Management Decision Making for Synthesis- myassignmenthelp.com

Question: Discuss about the Management Decision Making for Review and Synthesis. Answer: Introduction Harley-Davidson Company is a firm that deals with the production of motorcycles, spare parts, and sale of riding costumes as well as licensing the use of its name and trademark by other companies such as those manufacturing clothes which include LOreals line of Harley-Davidson cologne. Transformation Harleys change came to effect after a drop in its market for the motorcycles. This was brought about by competition from the Japanese companies as well as accumulated debts which were included in the companys balance sheet. However, in the 1980s, the company was reborn and became successful due to; cutting down stock and costs hence enhancing quality control. There were improved production methods and co-operation between workers and the management. Additionally, investment in new models and machinery led to a broader market for its motorcycles. Harleys managers conducted a benchmarking to several Japanese car plants on the Just-In-Time system, whereby they later converted their operations to JIt. They came up with a production-scheduling program known as Materials-As-Needed. Tools and Techniques SWOT analysis explores a companys strengths, weaknesses, opportunities, and threats. Harleys weakness was that he lagged behind when it came to improving his technology. However, the company too had some strengths that did outdo his competitors, he ventured in new products and came up with new models, attractive painting designs, and improving his engineering techniques. Harley identified opportunities such as selling spare parts and riding costumes for both genders (Brannen, Miller, Ibrahim, 2012). He also licensed the use of his name and trademark to other companies who manufactured clothes, jewelry, and other products. Nonetheless, Harley faced threats from his competitors such as Honda and BMW who manufactured both motorcycles and cars, unlike him who manufactured motorcycles only. PESTLE analysis considers factors affecting Harley which are Political, economic, social, technological, legal, and environmental aspects. Harley took a long time to adopt new technologies in the manufacture of motorcycles. He chooses the traditional designs thus his bikes looked old-fashioned. In a social perspective, Harley built better employee-employer relationship thus leading to job satisfaction and employee commitment. In an economic point of view, models developed by Harley were expensive thus the customers opted for cheaper products from other companies. Porters analysis focuses mainly on the competitors. Harley faced competitive rivalry from Honda and BMW who produced both cars and motorcycles making him loose some clients. (Schoenberg, Collier, Bowman, 2013). To improve his supplying power, Harley improved his distribution network and incorporated pre- and after-sales services to his clients, which he believed would increase demand for the motorcycles. Harley Principle Resources and Capabilities Principle resources determine the capacity of a firm. First, financial resources; Harley had his sales largely financed by loans from its financial services which was later retained on its balance sheet. Second, physical; the firm worked hard in improving its equipment painting designs and sale of spare parts. Thirdly, technology; Harley had less know-how of technology whereby he developed old-styled motorcycles. Fourthly, reputation; the firms primary customers were aging and bought new bikes less often. Lastly, human resources; the management buyout in Harley enhanced employee relationship, and workers became more committed. Recommendations Harley was left behind in adopting the new technology. He would have been in a position to cope with the rising competition if he adopted new technology. Secondly, he would come up with other substitutes of motorcycles as his competitors had done, allowing him to maintain his customers who would have opted for alternatives from the firm. Thirdly, he would have regulated the prices of his products to compete with those of his competitors. Conclusion Analyzing the firms strengths, weaknesses, opportunities, and threats are essential in determining the areas to be improved for it to be successful and achieve its required goals. A PESTLE analysis is necessary to identify all the external factors that would influence the performance of Harley. All these factors are major for the achievement of the goals of a firm and should not be assumed. References Brannen, D. E., Miller, J. R., Ibrahim, N. A. (2012). HARLEY-DAVIDSON, INC. Schoenberg, R., Collier, N., Bowman, C. (2013). Strategies for business turnaround and recovery: a review and synthesis.European Business Review,25(3), 243-262.