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M2 A2Assignment 2: Harley-Davidson: External and Internal Analysis
Instructions for this assignment: Perform all of the elements listed below.
This assignment has you complete two parts of a strategic business plan. To see how those parts fit into a full business plan, click .next.ecollege.com/pub/content/8d6150fe-487d-48cf-9299-c7fa28638588/AUO_BUS499_5W_Strategic_Business_Plan_Outline.doc”>here for a strategic business plan outline.
Part I – Analysis of the External Environment
As part of the Strategic Business Plan, you have been asked to:
- Identify and analyze the major driving forces for change in the external environment of the motorcycle industry.
- Analyze the dynamics of competition using Porter’s Five Forces Model of Competition. Correctly assess the dynamics of competition.
- Provide at least three statistics about the size of the motorcycle industry such as revenue, growth rate, number of units sold by manufacturer/country, etc.
- Summarize the strategic issues firms in this industry face and identify their biggest threats.
This section should be titled “The Analysis of H-D’s External Environment.”
Part II – Internal Environment Analysis
Financial
Gather the financial information necessary to do a complete ratio analysis and the Balance Score Card (BSC) key metrics information.
If you were going to create a BSC, what would be the key metrics you would measure in each of the four BSC areas:
- Financial
- Customer
- Internal Business Process
- Learning and Growth
Perform a ratio analysis using H-D’s five-year financial performance. Interpret the meaning of the ratios and financial performance.
This section should be titled “The Analysis of H-D’s Current Strategy: Two Views.” Be sure to include the ratio analysis. You may also include other graphics to support your narrative.
Competitors
Based on your analysis, you must decide which two competitors present the biggest competitive threat to H-D.
Perform a financial ratio analysis for the competitors after looking at trends in financial performance over five years, and compare the trends to industry averages.
Be sure you have a clear ranking of the industries’ competitors.
This section should be titled “Competitor Analysis.” Be sure to include the financial ratio analysis. You may also include other graphics to support your narrative.
This assignment should be 4 to 8 pages in length.
Submit your Word document to the M2 Assignment 2 Dropboxby Wednesday, May 18, 2016.
Assignment 2 Grading Criteria | Maximum Points |
External environment analysis: driving forces, dynamics of competition, and at least three statistics about the size of the industry. | 15 |
Summarized strategic issues faced by the industry and identifed their biggest threats. | 20 |
Performed a financial ratio analysis using H-D’s five-year financial performance and interpreted the ratios—see the text for which ratios to perform. Concluded how well the firm’s strategy is working. | 20 |
Created a hypothetical BSC for H-D after selecting which measures you believe are important in the four areas: serving customers, improving processes, learning, and growth and financial performance. | 15 |
Performed a ratio analysis of the financial performance of two competitors and compared them to H-D. Developed a Word document entitled “The Analysis of H-Ds Current Strategy: Two Views,” which includes analysis of your findings. | 15 |
Developed the documents that include analysis of your findings. Justified ideas and responses by using appropriate examples and references from texts, Web sites, and other references or personal experience. Followed APA rules for attributing sources. | 15 |
Total: | 100 |
Strategic Business Plan Outline
Part I – Feasibility Study
- Cover page
- Table of Contents
- Executive Summary
- Summary of Strategic
Direction [Module 1] - Vision
- Mission/ Corporate
Values - Goals
- Stakeholders
Interest/ Needs - Analysis of the
External Environment [Module 2- Part 1] - Results from
Scanning - Results from
Monitoring - Competitive
Environment
i. Porter’s
Five Forces Model
ii. Value Net
Analysis
iii. Dynamics of
Competition/ Competitor Analysis
- Strategic
Challenges/ Issues facing the Industry
- Internal Environment
Analysis [Module 2 – Part 2] - SWOT Analysis
- Value Chain Analysis
i. Primary
Activities
ii. Secondary
Activities
iii. Resource
Based Analysis
1.
Internal
2.
External
3.
Achieving Sustainable Competitive Advantage
iv. Financial
Ratio Analysis/ Five year period
- Strategy Analysis [Module 3]
- Cost Leadership
Strategy
i. Identify
elements that could lead to sustainable advantage
ii. Advantages/
Disadvantages of this strategy
- Differentiation
Strategy
i. Identify
elements that could lead to sustainable advantage
ii. Advantages/
Disadvantages of this strategy
- Focus Strategy
i. Identify
elements that could lead to sustainable advantage
ii. Advantages/
Disadvantages of this strategy
- Combination Strategy
i. Identify
elements that could lead to sustainable advantage using several of Cost/
Differentiation/ Focus
ii. Advantages/
Disadvantages of this strategy
- Industry/ Firm Life
Cycle
i. Strategic
implications of each stage analyzed
- Corporate Level
Strategy [Module 3 - Identify
consequences of Diversification
i. Economies of
Scope
ii. Revenue
Enhancement
iii. Market Power
- Identify unrelated
Diversification
i. Financial
Synergy
ii. Parenting
- Methods of achieving
Diversification
i. Mergers
& Acquisitions
ii. Strategic
Alliances/ Joint Ventures
iii. Internal
Development
- Corporate Ethics in
Value Creation
- Feasibility Study
Summary - Conclusions
- Recommendations
- Appendix
Part II – Strategic Plan
- Cover page
- Table of Contents
- Executive Summary
- Global Economy/
Factors Affecting Global Economy [Module 4] - Motivations/ Risks
i. Motivations
for Expansion
ii. Risks in
Expansion
- Competitive
Advantage in Global Markets - Entry Strategies for
Global Expansion - Internet Approach/
Strategy
i. How the
Internet adds value
ii. Internet
Business Models
iii. Competitive
Strategies
iv. Leverage
E-Business Capabilities
- Corporate
Leadership [Module 5] - Direction Setting
- Organizational
Design - Organizational
Culture - Leadership Traits
- Ethical Organization
Characteristics
i. Identify
elements
ii. Identify
missing elements
- Learning
Organization Characteristics
i. Identify
elements
ii. Identify
missing elements
- Strategic Plan
Summary - Conclusions
- Recommendations
- Implementation
- Risks
- Appendix