CORPORATE OBJECTIVE

Corporate Objective

Corporate Objective

Introduction

The purpose of this report is to develop a overriding corporate objective for Harley-Davidson Inc., a publicly traded, employee owned manufacturer of heavyweight motorcycles, recreational and commercial vehicles, military defense items, and small engines, distributing its products to domestic and international markets targeting all men and women of all ages.

Founders

William S. Harley

Arthur Davidson

Walter Davidson

William A. Davidson

Mission and Vision of Harley Davidson

Heritage Harley-Davidson fulfills dreams by providing all riders and customers with a friendly, comfortable and knowledgeable Harley-Davidson environment. We will consistently treat everyone with fairness and integrity and be genuinely interested in their satisfaction and in maintaining a long term relationship. Our vision is to provide an unsurpassed experience for all motorcycle enthusiasts while providing fulfilling, worthwhile work and growth opportunities for our team of trained professionals. We strive for continuous improvement in everything we do. We value Integrity; Loyalty; Fairness; Competence; Sharing knowledge; Accomplishment.

Major Shareholders

Funds Institutions

Name

SharesHeld

% TotalShares Held

SharesChange

% Chg fromPrior Port

% TotalAssets

Date of Portfolio

Star Rating

Davis NY Venture A

9,850,560

4.20

0

0.00

0.78

10/31/2009

American Funds Invmt Co of Amer A

4,825,000

2.06

0

0.00

0.21

12/31/2009

Fidelity Equity-Income

4,283,450

1.83

0

0.00

0.61

02/28/2010

American Funds AMCAP A

4,181,900

1.78

0

0.00

0.55

12/31/2009

American Funds Washington Mutual A

3,950,000

1.68

0

0.00

0.20

12/31/2009

T. Rowe Price Equity Income

3,451,500

1.47

0

0.00

0.50

12/31/2009

Selected American Shares S

3,439,500

1.47

0

0.00

1.03

12/31/2009

American Funds Growth Fund of Amer A

3,109,500

1.33

0

0.00

0.05

12/31/2009

Fidelity VIP Growth Svc

3,012,091

1.29

0

0.00

2.09

02/28/2010

Clipper

2,823,060

1.20

0

0.00

6.17

12/31/2009

Goldman Sachs Mid Cap Value Instl

2,583,169

1.10

2,583,169

---

1.14

12/31/2009

Fidelity Advisor Equity Growth I

2,592,900

1.11

0

0.00

2.09

02/28/2010

Vanguard Mid Capitalization Index Ins

2,493,511

1.06

-17,784

-0.71

0.32

12/31/2009

American Funds American Mutual A

2,408,000

1.03

0

0.00

0.39

12/31/2009

Vanguard Total Stock Mkt Idx

2,301,504

0.98

74,002

3.32

0.05

12/31/2009

Oakmark I

2,262,000

0.96

-200,000

-8.12

1.66

12/31/2009

Vanguard 500 Index Investor

2,202,311

0.94

-31,073

-1.39

0.06

12/31/2009

T. Rowe Price Value

2,105,000

0.90

-80,000

-3.66

0.60

12/31/2009

SPDR S&P 500

2,019,569

0.86

253,591

14.36

0.06

12/31/2009

American Funds NVIT Growth-Income II

1,950,000

0.83

0

0.00

0.21

12/31/2009

Industry and Competitive Market

The industry under study is the motorcycle industry consisting of five major manufacturers: one American (Harley Davidson), and four Japanese (Honda, Yamaha, Kawasaki, Suzuki) and some European companies (mainly BMW of Germany and some other Italian companies). Most companies market their motorcycles and accessories on a worldwide basis, handling international trade through foreign distributors and domestic sales through franchised outlets. Industry sales of motorcycles were shrinking in the early l990s because of the recession and the competition from computers and electronic products decreasing consumers' discretionary income. Sales of accessories and parts make up 36% of total retail sales and are a viable area for producers to explore because people want something to differentiate their bikes.

Mission

Harley's overiding objective is to continue to provide safe, high technology heavyweight bikes and keep customer satisfaction at high levels. This quality vision more than doubled Harley's market share and increased its brand loyalty.

External Planning Premises

Customers

They can be divided into 2 categories men and women.

Men.

A. Men under 30. This group accounts for 44% of all sales. Therefore, a great opportunity exists here because of the group's size. This group's members buy motorcycles for their transportation and recreation needs. Men in this group buy more of mopeds, scooters and entry level lightweight road bikes.

B. Men between 30 and 50. This age group makes up 45k of buyers another large area providing opportunities for firms. The motorcycles most frequently purchased are the heavyweight tourers and cruisers. Many buyers are married couples looking for an alternative to taking the car out for weekend drives to the country.

C. Men over 50. This group accounts for about 11% of motorcycle ...