Harley Davidson HBR Case Study

THE COMPANY Founded in 1903, the Harley-Davidson Motor Company set out with a goal of “taking the work out of bicycling” (Austin, 2003, p.1). Despite beginning in a shed just 17 years prior, Harley-Davidson was able to rapidly transform into the world’s largest motorcycle manufacturer by 1920. Along with the establishment of a dominant worldwide presence, Harley-Davidson forged a defining company image. Company CEO Jeff Bleustein described Harley-Davidson’s image as “a little bit special, a little bit mysterious, a little bit bad.” This image of “an almost mystical power” to live free and adventurous created a demand from customers, so strong, that many “were willing to wait up to two years for a motorcycle” (Austin, 2003, p.2). However, Harley-Davidson’s journey was not without its bumps in the road. As a result of the rapid rise in production growth – 0 in 1903, 28,000 in 1920, and 150,818 in 1998 – Harley-Davidson experienced quality control issues and faced stiff competition from Japanese manufacturers Honda, Yamaha, Suzuki and Kawasaki. In the 1980s, things became so bad that Harley-Davidson found itself on the verge of bankruptcy. Determined to regain its prowess and move away from the verge of bankruptcy, the company “renewed focus on quality” and completed a successful IPO in 1986 leading to a worldwide resurgence (Austin, 2003, p.2). Harley-Davidson’s organizational structure is far from a standard hierarchical corporate chart. Valuing a combination of individual participation and teamwork, Harley-Davidson utilizes “the concept of self-directed teams from the factory floor to the executive level” (Austin, 2003, p.2). The concept creates a structure of 3 circles: Create Demand (CDC) handling sales and marketing, Produce Products Group (PPG) in charge of development and manufacturing, and Provide Support (PSC) controlling financial, HR and legal responsibilities. Each circle is led by a “Circle of Leadership” and the interlocking section of the

References: Austin, R., Sole, D., and Cotteleer, M. (2003). “Harley Davidson Motor Company: Enterprise Software Selection” Harvard Business Review. Accessed on 7/8/14 at: https://cb.hbsp.harvard.edu/cbmp/content/27492283.