Harley Davidson, Inc.

Harley-Davidson, Inc. 2009 Case Notes Prep ard by Dr. Mernoush Banton Case Authors Carol Pope and Joanne macintosh A. Case Abstract Harley-Davidson, Inc. (www. harley-davidson. com) is a comprehensive st come outgic man geezerhoodment lawsuit that includes the communitys calendar December 31, 2008 monetary statements, competitor randomness and to a greater extent. The case time setting is the grade 2009. Sufficient internal and remote(a) data ar provided to enable students to evaluate current strategies and recommend a three- socio- sparing class strategic plan for the company. Headquartered in Milwaukee, WI, Harley-Davidson, Inc. s traded on the New York blood Exchange under ticker symbol HOG. B. Vision Statement (Actual) Harley-Davidson is an action-oriented, intercontinental company, a leader in its commitment to continuously reform its inversely beneficial relationships with stakeholders (clients, suppliers, employees, sh arholders, government, and society). Harle y-Davidson believes the key to success is to balance stakeholders bear ons through and through the empowerment of both(prenominal) employees to focus on value-added activities. Vision Statement (Proposed) We want to make your cycle posture a safe and a lifetime experience. C.Mission Statement (Actual) We carry out dreams through the experiences of motorcycling, by providing to motorcyclists and to the general public an expanding line of pedals, discolorationed fruits and function in selected food market segments. Mission Statement (Proposed) Harley-Davidson is committed to providing the in high spiritsest quality harvest-tides and financial services to men and women world bulky (1, 3). The Harley name stands for guest satisfaction (7) and we would resembling all Harley customers to relay their satisfaction to all motorcycle dreamers. Harley-Davidson uses advanced engineering science to produce the superior motorcycles (4).Our philosophy is to conduct business with u tmost righteousness while serving our customers, employees, and shargonholders (6). We appreciate the hard work of our employees (9). We push justice though our Harley-Davidson bar and shield logo and the Harley Owners Group (HOG) (7). We continue to do our part in supporting all environmental laws in every country we do business (8). Harley-Davidson intends to stay committed and determined. 1. guest 2. trade ins or services 3. Markets 4. Technology 5. Concern for survival, profitability, emergence 6. Philosophy 7. Self-concept 8.Concern for public shape 9. Concern for employees D. outer Audit CPM hawkish Profile Matrix Harley-Davidson Honda Yamaha detailed Success Factors weight Rating weighted collide withRating Weighted ScoreRating Weighted Score Advertising 0. 08 4 0. 32 2 0. 16 3 0. 24 Top Management 0. 05 2 0. 0 2 0. 10 3 0. 15 Customer do 0. 10 4 0. 40 3 0. 30 2 0. 20 Technological Advances 0. 09 3 0. 27 1 0. 09 2 0. 18 world-wide Market gross revenue 0 . 07 3 0. 21 4 0. 28 2 0. 14 Global Expansion 0. 06 2 0. 12 4 0. 4 3 0. 18 financial plant 0. 07 2 0. 14 4 0. 28 3 0. 21 Customer Loyalty 0. 11 4 0. 44 3 0. 33 2 0. 22 Market component part 0. 09 2 0. 18 4 0. 36 3 0. 27 Product Quality 0. 10 4 0. 40 3 0. 30 2 0. 0 Marketing 0. 10 2 0. 20 3 0. 30 1 0. 10 comprise Competitiveness 0. 08 1 0. 08 3 0. 24 2 0. 16 list 1. 00 2. 86 2. 98 2. 25 Opport unit of measurementies 1. rescue in atomic number 63 and other regions is growing at a best(p) rate than unite States 2. Gasoline expense has been stabilized in 2009 3. competition has trim their increaseion of motorcycle in 2009 4. Currently, Yamaha has seen decreasing motorcycle gross revenue in Japan, the united States, and Europe, except is doing better in south-east Asia and Latin the States 5. Honda, Yamaha and Suzuki argon more diversified than Harley in name of reaping offerings 6. womanish riders argon on the swot 7. Honda, Yamaha and Suzuki focus on ATV s, scooters, and devil dog and watercraft in addition to various motorcycle product lines 8. Motorcycles typically are considered a good replacement for automobiles when gas prices are on the riseThreats 1. Unemployment is on the rise in the fall in States among middle class who could afford to pervert a motorcycle 2. Competitors are reducing their prices so they fanny mend gross gross sales 3. Disposable income is falling among professionals betwixt the age of 35 and 54 4. Competition is strong in markets outside the linked States 5. ontogenesis in furnish price could wallop the industriousness sales 6. Rise in interest rate could impact the stealers from purchasing and financing high slating items 7. environmental protection laws could impact product foundation and cost 8.Shifts in vendees ask and tastes External Factor Evaluation (EFE) Matrix Key External Factors Weight Rating Weighted Score Opportunities Economy in Europe and other regions is growing at a better rate than joined States0. 08 4 0. 32 Gasoline price has been stabilized in 2009 0. 6 3 0. 18 Competition has decrease their production of motorcycle in 2009 0. 09 3 0. 27 Currently, Yamaha has seen decreasing motorcycle sales in Japan, the get together 0. 05 4 0. 2 States, and Europe, but is doing better in Southeast Asia and Latin America Honda, Yamaha and Suzuki are more diversified than Harley in ground of product 0. 5 2 0. 1 offerings Female riders are on the rise 0. 04 3 0. 12 Honda, Yamaha and Suzuki focus on ATVs, scooters, and marine and watercraft in 0. 07 3 0. 1 addition to various motorcycle product lines Motorcycles typically are considered a good replacement for automobiles when gas 0. 06 4 0. 24 prices are on the rise Threats Unemployment is on the rise in the unite States among middle class who could 0. 9 2 0. 18 afford to buy a motorcycle Competitors are reducing their prices so they can improve sales 0. 07 3 0. 21 Dis posable income is falling among professionals amidst the age of 35 and 54 0. 07 2 0. 14 Competition is strong in markets outside the fall in States 0. 06 2 0. 2 Increase in terminate price could impact the sedulousness sales 0. 07 1 0. 07 Rise in interest rate could impact the buyers from purchasing and financing high 0. 05 2 0. 1 ticket items Environmental protection laws could impact product design and cost 0. 05 1 0. 5 Shifts in buyers needs and tastes 0. 04 1 0. 04 list 1. 00 2. 55 Positioning Map pic E. Internal Audit Strengths 1. Additional commercial enterprise cuts has helped the company to improve its profit margin 2. Harley-Davidson motorcycles have led the persistence in the United States for sell unit registrations of red-hot heavyweight motorcycles 3.Harley-Davidson operates in two segments (1) financial services and (2) motorcycles and cerebrate products. 4. Harley-Davidson has 5 divisions (1) Parts & Accessories (P) (2) universal Merchandise ( 3) Licensing and (4) Motorcycles 5. The Company offers a wide range of families of motorcycles (1) Touring, (2) Dyna, (3) Softail, (4) Sportster, and (5) VRSC 6. In terms of non-U. S. distribution, Harley-Davidson has 71 full service dealerships in Canada, 383 in Europe, 201 in Asia Pacific, and 32 in Latin America 7. Strong brand recognition and customer loyalty . transnational sell sales were up 10. 3 per centum as compared to 2007 9. summarise current asset increase by $1. 9 billion dollars from 2007 to 2008 10. Harley offers financing of its bikes through HDFS Weaknesses 1. The Harley-Davidson motorcycle share of the heavyweight market was 45. 5 per centum and 48. 7 part in 2008 and 2007, respectively 2. all 12 share of U. S. retail motorcycle sales of clean-made Harley-Davidson motorcycles are to young-bearing(prenominal) buyers 3. A typical buyer of Harley bike has an average of average base income of approximately $87,000 4.For the full course of instruction 20 09, Harley-Davidson plans to ship between 264,000 and 273,000 new Harley-Davidson motorcycles, a 10 to 13 pct step-down from 2008 5. natural worldwide retail sales dropped by 7. 15 in 2008 from previous year 6. International retail sales growth slowed to 0. 7 pctage during the fourthly quarter of 2008 as a result of deteriorating economic conditions outside the United States 7. In the United States, retail sales of Harley-Davidson motorcycles in 2008 were down 13. 0 percent 8. Total operating income dropped by about $400 trillion from 2007 to 2008Financial proportion Analysis (December 2009) Growth deems % Harley-Davidson Industry S viosterol Sales (Qtr vs year ago qtr) -18. 00 -13. 00 -4. 80 dinero Income (YTD vs YTD) -71. 60 15. 80 -6. 00 authorize Income (Qtr vs year ago qtr) -84. 10 6. 40 26. 80 Sales (5-Year Annual Avg. ) 4. 2 0. 78 12. 99 Net Income (5-Year Annual Avg. ) -2. 96 -7. 50 12. 69 Dividends (5-Year Annual Avg. ) 45. 92 34. 93 11. 83 Price dimen sions Harley-Davidson Industry S 500 Current P/E Ratio 24. 3 25. 6 26. P/E Ratio 5-Year High 21. 9 4. 3 68. 0 P/E Ratio 5-Year Low 3. 0 0. 8 9. 9 Price/Sales Ratio 1. 12 1. 12 2. 25 Price/ moderate valuate 2. 58 3. 36 3. 48 Price/Cash Flow Ratio 11. 90 15. 0 13. 70 internet security deposits % Harley-Davidson Industry S 500 Gross Margin 29. 1 23. 1 38. 9 Pre-Tax Margin 9. 2 6. 0 10. 3 Net Profit Margin 4. 2. 4 7. 1 5Yr Gross Margin (5-Year Avg. ) 37. 9 29. 4 38. 6 5Yr PreTax Margin (5-Year Avg. ) 23. 8 17. 4 16. 6 5Yr Net Profit Margin (5-Year Avg. ) 15. 3 11. 2 11. 5 Financial human body Harley-Davidson Industry S 500 Debt/Equity Ratio 2. 26 1. 53 1. 09 Current Ratio 1. 4 1. 8 1. 5 Quick Ratio 1. 3 1. 4 1. 3 Interest Coverage 46. 2 27. 4 23. 7 Leverage Ratio 4. 1 3. 5 3. Book Value/Share 9. 77 9. 22 21. 63 fitted from www. moneycentral. msn. com Avg P/E Price/ Sales Price/ Book Net Profit Margin (%) 12/08 12. 20 0. 67 1. 87 11. 0 12/07 15. 50 1. 90 4. 69 15. 2 12/06 14. 0 3. 02 6. 60 16. 9 12/05 15. 50 2. 55 4. 58 16. 9 12/04 19. 00 3. 39 5. 56 16. 7 12/03 17. 80 2. 95 4. 85 15. 5 12/02 26. 80 3. 28 6. 6 13. 5 12/01 32. 10 4. 64 9. 36 12. 2 12/00 36. 40 3. 96 8. 54 11. 3 12/08 12. 20 0. 67 1. 87 11. 0 Book Value/ Share Debt/ Equity harvesting on Equity (%) devote on Assets (%) Interest Coverage 12/08 $9. 9 1. 86 30. 9 8. 4 226. 6 12/07 $9. 96 0. 90 39. 3 16. 5 NA 12/06 $10. 68 0. 62 37. 8 18. 9 NA 12/05 $11. 25 0. 39 31. 1 18. 3 NA 12/04 $10. 94 0. 40 27. 6 16. NA 12/03 $9. 81 0. 34 25. 7 15. 5 NA 12/02 $7. 38 0. 34 26. 0 15. 0 NA 12/01 $5. 80 0. 34 24. 9 14. 0 NA 12/00 $4. 65 0. 32 24. 7 14. 3 NA 12/08 $9. 9 1. 86 30. 9 8. 4 226. 6 Adapted from www. moneycentral. msn. com Internal Factor Evaluation (IFE) Matrix Key Internal Factors Weight Rating Weighted Score Strengths Additional job cuts has helped the company to improve its profit margin 0. 05 3 0. 5 Harley-Davidson motorcycles have l ed the patience in the United States for retail 0. 08 4 0. 32 unit registrations of new heavyweight motorcycles Harley-Davidson operates in two segments (1) financial services and (2) 0. 05 3 0. 15 motorcycles and related products. Harley-Davidson has 5 divisions (1) Parts & Accessories (P) (2) General 0. 3 4 0. 12 Merchandise (3) Licensing and (4) Motorcycles The Company offers a wide range of families of motorcycles (1) Touring, (2) Dyna,0. 06 3 0. 18 (3) Softail, (4) Sportster, and (5) VRSC In terms of non-U. S. distribution, Harley-Davidson has 71 full service dealerships0. 5 3 0. 15 in Canada, 383 in Europe, 201 in Asia Pacific, and 32 in Latin America Strong brand recognition and customer loyalty 0. 07 4 0. 28 International retail sales were up 10. 3 percent as compared to 2007 0. 07 3 0. 21 Total current asset increased by $1. billion dollars from 2007 to 2008 0. 06 3 0. 18 Harley offers financing of its bikes through HDFS 0. 06 3 0. 18 Weaknesse s The Harley-Davidson motorcycle share of the heavyweight market was 45. 5 percent 0. 07 1 0. 07 and 48. percent in 2008 and 2007, respectively Only 12 percent of U. S. retail motorcycle sales of new Harley-Davidson motorcycles0. 05 1 0. 05 are to female buyers A typical buyer of Harley bike has an average of medial household income of 0. 05 1 0. 5 approximately $87,000 For the full year 2009, Harley-Davidson plans to ship between 264,000 and 273,000 0. 05 1 0. 05 new Harley-Davidson motorcycles, a 10 to 13 percent reduction from 2008 Total worldwide retail sales dropped by 7. 15 in 2008 from previous year 0. 06 2 0. 12 International retail sales growth slowed to 0. percent during the fourth quarter 0. 03 2 0. 06 of 2008 as a result of deteriorating economic conditions outside the United States In the United States, retail sales of Harley-Davidson motorcycles in 2008 were 0. 05 1 0. 05 down 13. 0 percent Total operating income dropped by about $4 00 million from 2007 to 2008 0. 06 1 0. 6 Total 1. 00 2. 43 F. SWOT Strategies Strengths Weaknesses Additional job cuts has helped the company to The Harley-Davidson motorcycle share of the improve its profit margin heavyweight market was 45. percent and 48. 7 Harley-Davidson motorcycles have led the percent in 2008 and 2007, respectively industry in the United States for retail unit Only 12 percent of U. S. etail motorcycle sales registrations of new heavyweight motorcycles of new Harley-Davidson motorcycles are to Harley-Davidson operates in two segments (1) female buyers financial services and (2) motorcycles and A typical buyer of Harley bike has an average related products. of median household income of approximately Harley-Davidson has 5 divisions (1) Parts & $87,000 Accessories (P) (2) General Merchandise (3)For the full year 2009, Harley-Davidson plans Licensing and (4) Motorcycles to ship between 264,000 and 273,000 new The Company offers a wide range of families of Harley-Davidson motorcycles, a 10 to 13 percent motorcycles (1) Touring, (2) Dyna, (3) reduction from 2008 Softail, (4) Sportster, and (5) VRSC Total worldwide retail sales dropped by 7. 15 in In terms of non-U. S. distribution, 2008 from previous year Harley-Davidson has 71 full service dealershipsInternational retail sales growth slowed to 0. in Canada, 383 in Europe, 201 in Asia Pacific, percent during the fourth quarter of 2008 as a and 32 in Latin America result of deteriorating economic conditions Strong brand recognition and customer loyalty outside the United States International retail sales were up 10. 3 percentIn the United States, retail sales of as compared to 2007 Harley-Davidson motorcycles in 2008 were down Total current asset increased by $1. 9 billion 13. percent dollars from 2007 to 2008 Total operating income dropped by about $400 Harley offers financing of its bikes through million from 2007 to 2008 HDFS Opportuniti es S-O Strategies W-O Strategies Economy in Europe and other regions is growing perplex a lower price / atonic weight bike, 1. Offer a better discount for retailers to at a better rate than United States efficient in arouse consumption for individuals sell / promote Harley merchandise such as Gasoline price has been stabilized in 2009 who are interested in riding a bike but cant clothes, mugs, etc. (W5, W6, O) Competition has reduced their production of afford or ride the current models (S3, S4, S5, 2.Offer better financing rate to new / first-year motorcycle in 2009 S6, S7, S8, S8, S9, S10, O1, O2, O5, O6, O8) time buyers (W1, W3, W5, W7, O3, O4) Currently, Yamaha has seen decreasing Create a new line for female riders to be motorcycle sales in Japan, the United States, promoted in US and foreign markets (S5, S7, O8, and Europe, but is doing better in Southeast S9, S10, O1, O4, O6) Asia and Latin America Honda, Yamaha and Suzuki are more diversified than Harley in terms of product offerings Female riders are on the rise Honda, Yamaha and Suzuki focus on ATVs, scooters, and marine and watercraft in addition to various motorcycle product lines Motorcycles typically are considered a good replacement for automobiles when gas prices are on the rise Threats S-T Strategies W-T Strategies Unemployment is on the rise in the United Increase current promotional campaign (product Introduce a new product line Harley2 suitable States among middle class who could afford to placement, advertising, Online newsgroup / for female riders, coruscation weight and priced buy a motorcycle press releases, media ads, etc. ) both in the lower to be marketed to a new segment (W2, W3, Competitors are reducing their prices so they U. S. nd abroad (S1, S2, SS7, S9, S10, T3, T8) W4, W5, T1, T2, T3, T5, T6, T7) can improve sales Disposable income is falling among professionals between the age of 35 and 54 Competition is strong in mark ets outside the United States Increase in fuel price could impact the industry sales Rise in interest rate could impact the buyers from purchasing and financing high ticket items Environmental protection laws could impact product design and cost Shifts in buyers needs and tastes G. SPACE Matrix pic Financial stableness (FS) Environmental Stability (ES) Return on Investment 6 Unemployment -5 Leverage 5 Technological Changes -2 liquid 4 Price Elasticity of Demand -1 Working Capital 4 Competitive Pressure -4 Cash Flow 4 Barriers to Entry -5 Financial Stability (FS) Average 4. 6 Environmental Stability (ES) Average -3. Competitive Stability (CS) Industry Stability (IS) Market Share -2 Growth latent 5 Product Quality -1 Financial Stability 1 Customer Loyalty -1 Ease of Market Entry 5 Competitions Capacity Utilization -3 Resource Utilization 4 Technological Know-How -2 Profit Potential 3 Competitive Stability (CS Ave rage -1. Industry Stability (IS) Average 3. 6 Y-axis FS + ES = 4. 6 + (-3. 4) = 1. 2 X-axis CS + IS = (-1. 8) + (3. 6) = 1. 8 H. Grand Strategy Matrix pic 1. Market development 2. Market discernment 3. Product development 4. Forward integration 5. Backward integration 6. flat integration 7. Related diversification I. The Internal-External (IE) Matrix The IFE Total Weighted Score Strong Average Weak 3. 0 to 4. 0 2. 0 to 2. 99 1. 0 to 1. 9 High I II III 3. 0 to 3. 99 IV IV VI Medium 2. 0 to 2. 99 Harley-Davidson Low VII VIII IX 1. 0 to 1. 99 J. QSPM break up a lower price /Offer better financing lite weight bike, rate to new / first efficient in fuel time buyers consumption for individuals who are interested in riding a bike but cant afford or ride the current models Key Factors Weight AS TAS AS TAS Opportunities Economy in Europe and other regions is growing at a better rate than 0. 08 4 0. 32 2 0. 16 United States Gasoline price has been stabilized in 2009 0. 06 4 0. 24 1 0. 06 Competition has reduced their production of motorcycle in 2009 0. 09 4 0. 36 3 0. 27 Currently, Yamaha has seen decreasing motorcycle sales in Japan, the 0. 5 United States, and Europe, but is doing better in Southeast Asia and Latin America Honda, Yamaha and Suzuki are more diversified than Harley in terms of 0. 05 product offerings Female riders are on the rise 0. 04 3 0. 12 1 0. 04 Honda, Yamaha and Suzuki focus on ATVs, scooters, and marine and 0. 7 watercraft in addition to various motorcycle product lines Motorcycles typically are considered a good replacement for automobiles 0. 06 4 0. 24 2 0. 12 when gas prices are on the rise Threats Unemployment is on the rise in the United States among middle class who 0. 09 2 0. 18 4 0. 6 could afford to buy a motorcycle Competitors are reducing their prices so they can improve sales 0. 07 3 0. 21 1 0. 07 Disposable income is falling among professionals between the age of 35 and0. 07 3 0. 21 1 0. 07 54 Competition is strong in markets outside the United States 0. 06 3 0. 18 2 0. 12 Increase in fuel price could impact the industry sales 0. 07 4 0. 28 2 0. 4 Rise in interest rate could impact the buyers from purchasing and 0. 05 4 0. 20 3 0. 15 financing high ticket items Environmental protection laws could impact product design and cost 0. 05 Shifts in buyers needs and tastes 0. 04 TOTAL 1. 00 2. 54 1. 6 Strengths Additional job cuts has helped the company to improve its profit margin 0. 05 Harley-Davidson motorcycles have led the industry in the United States for0. 08 3 0. 24 1 0. 08 retail unit registrations of new heavyweight motorcycles Harley-Davidson operates in two segments (1) financial services and (2) 0. 05 motorcycles and related products. Harley-Davidson has 5 divisions (1) Parts & Accessories ( P&A) (2) 0. 03 General Merchandise (3) Licensing and (4) Motorcycles The Company offers a wide range of families of motorcycles (1) Touring, 0. 06 (2) Dyna, (3) Softail, (4) Sportster, and (5) VRSC In terms of non-U. S. distribution, Harley-Davidson has 71 full service 0. 05 2 0. 1 3 0. 5 dealerships in Canada, 383 in Europe, 201 in Asia Pacific, and 32 in Latin America Strong brand recognition and customer loyalty 0. 07 3 0. 21 2 0. 14 International retail sales were up 10. 3 percent as compared to 2007 0. 07 3 0. 21 2 0. 14 Total current asset increased by $1. 9 billion dollars from 2007 to 2008 0. 06 Harley offers financing of its bikes through HDFS 0. 06 1 0. 06 4 0. 4 Weaknesses The Harley-Davidson motorcycle share of the heavyweight market was 45. 5 0. 07 percent and 48. 7 percent in 2008 and 2007, respectively Only 12 percent of U. S. retail motorcycle sales of new Harley-Davidson 0. 05 3 0. 15 1 0. 05 motorcycles are to female buyers A typical buyer of Harley bike has an average of median household income 0. 05 1 0. 05 3 0. 5 of approximately $87,000 For the full year 2009, Harley-Davidson plans to ship between 264,000 and 0. 05 273,000 new Harley-Davidson motorcycles, a 10 to 13 percent reduction from 2008 Total worldwide retail sales dropped by 7. 15 in 2008 from previous year 0. 06 1 0. 06 3 0. 18 International retail sales growth slowed to 0. 7 percent during the fourth 0. 3 quarter of 2008 as a result of deteriorating economic conditions outside the United States In the United States, retail sales of Harley-Davidson motorcycles in 2008 0. 05 1 0. 05 4 0. 2 were down 13. 0 percent Total operating income dropped by about $400 million from 2007 to 2008 0. 06 1 0. 06 3 0. 8 SUBTOTAL 1. 00 1. 19 1. 51 SUM TOTAL ATTRACTIVENESS SCORE 3. 73 3. 07 K. Recommendations experience a product line with 3 to 5 bikes that are light weight, fu el efficient, lower than average Harley motorcycles, compliance with EPA and other regulatory agencies to be marketed to 25 to 45 age group with income level of $65,000 or higher. The brand should be promoted for substitute to automobile for short distances. L. EPS/EBIT Analysis Amount call for $150 million Stock Price $25. 20 Tax Rate 36. 7% Interest Rate 6. 97% Shares Outstanding 234. 4 one thousand million Common Stock Financing Debt Financing time out Normal expound Recession Normal Boom 70 Percent Stock 30 Percent Debt 70 Percent Debt 30 Percent Stock Recession Normal Boom Recession Normal Boom EBIT $1,000,000,000 $1,500,000,000 $1,800,000,000 $1,000,000,000 $1,500,000,000 $1,800,000,000 Interest 8,364,000 8,364,000 8,364,000 2,091,000 2,091,000 2,091,000 EBT 991,636,000 1,491,636,000 1,791,636,000 997,909,000 1,497,909,000 1,797,909,000 Taxes 36,393,041,200 54,743,041,200 65,753,041,200 36,623,260,300 54,973,260,300 65,983,260,300 run through 35,401,405, 200 53,251,405,200 63,961,405,200 35,625,351,300 53,475,351,300 64,185,351,300 Shares 238,566,667 238,566,667 238,566,667 236,185,714 236,185,714 236,185,714 EPS 148. 39 223. 21 268. 11 150. 84 226. 41 271. 76 M. epilogue Harley-Davidson is extending the deadline for some its competitive bike exchange trade-in program so customers would have more time to take advantage of the promotion. The company has been act to stimulate its sales and financing program due to weak sparing and low sales results. They also announced that the Board of Directors approved a cash dividend of $0. 10 per share for the first quarter of 2010. This decision depart reduce their cash flow by approximately $23. 7 million. Harley-Davidson soothe is suffering from borrowing of $600 million three years ago at a rate of 15%.The interest of this loan is approximately $90 million a year which is impacting the companys bottom line. For 2009, the company announced 27% down from 2008 and ended up with a $55 mi llion loss its first loss since 1993. tag Loyalty (High) Brand Loyalty (Low) Price (High) Price (Low) Harley-Davidson, Inc. Honda BMW -1 -2 -3 -4 -5 -6 -7 7 -6 -1 -7 -5 -4 -3 -2 7 6 5 4 3 2 1 Defensive Competitive strong-growing Conservative 1 2 3 4 5 6 IS Weak Competitive Position Quadrant II Quadrant I Quadrant IV Quadrant III Strong Competitive Position Rapid Market Growth Slow Market Growth The EFE Total Weighted Score ES CS FS Yamaha