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HARLEY DAVIDSON

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Term Paper TitleHARLEY DAVIDSON
# of Words3008
# of Pages (250 words per page double spaced)12.03
HARLEY DAVIDSON

EXECUTIVE SUMMARY
     Harley-Davidson
is the largest market share holder of motorcycles over 750cc in the United
States. After the expansion of our production and distribution capacity, we
will be in the position to meet the increasing demand for our motorcycles and
other products.
     Growth potential appears very good especially in the overseas
market.  Gaining a larger market share in these area may require a further
increase in production and distribution capacities. We must plan for expansion
now and continue to grow as a company.

COMPANY DESCRIPTION
     In Milwaukee,
William Harley, 21, and Arthur Davidson, 20, began experiments on taking the
work out of bicycling. They were soon joined by Arthur’s brothers, Walter and
William. Many changes were made to the engine design before its builders were
satisfied. After the new looped from was finalized, they were ready to begin
production. In 1903 they produced three motorcycles. Harley-Davidson erected
its first building the current Juneau avenue site in 1906 and incorporated
in 1907. In 1907 Harley-Davidson produced 150 motorcycles.

SITUATION ANALYSIS
     The
motorcycle market over 750cc has been increasing over the last five years.
The Harley-Davidson 1996 model year production line, sold though a world wide
network of more than 1,000 dealers, includes 20 cruiser, factory custom and
touring motorcycles, as well as police motorcycles. Harley-Davidson benefits
form having one of the world’s most recognized and respected brand names and
our motorcycle model names are among the best known in the industry:
The
Competition and Market share
     This chart shows the competition and market
share for 1995 in the United States:

Current Market Situation
  Overall
     Net
sales for 1995 of $1.4 billion were $191.6 million, or 16.5%, higher than net
sales for 1994. Net income and earnings per
share from continuing operations
were $111.1 million and $1.48, for 1995 as compared with $96.2 million and
$1.26, for 1994. Net income and earnings per share from discontinued operations
were $1.4 million and $.02, for 1995 as compared with $8.0 million and $.11,
for 1994, which included a $4.6 million, or $.06 per-share, one-time tax benefit
related to the legal reorganization of Holiday Rambler. On January 22, 1996,
the Company announced its strategic decision to discontinue the operations
of the Transportation Vehicles segment in order to concentrate its financial
and human ...

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