Inventory of Facts
Harley Davidson is an international company headquartered in Madison. The company was started in 1903 by William Harley and Arthur Davidson to manufacture and sell motorcycles. The company has reported impressive performance throughout its history. The company has remained a market leader in the motorcycle industry. The leadership position was enhanced by issues like the Second World War where the company supplied military bike. Two other events happened in 1983 that contributed to the success of Harley-Davidson; tariff relief from the international trade commission and the establishment of Harley Owners group. The company has a loyal customer base with statistics showing that the majority of the customers bought motorcycles from the company while others switched from the competition. A small proportion of the customers are new owners. The company also has a changing customer base with the number of female customers tripling in 1990-1999 and the media age changing from 34.7 to 44.4. Similarly, the median income in the same period almost doubled to $73,600 from $38,400.
Statement of the Problem
Harvey Davidson has continued to report impressive performance and would like to expand its operations to other countries where the company is not operating. The global expansion comes with its share of challenges that must be addressed to experience smooth operations in the international market. Some of the problems likely to be faced by the company include culture-related issues, technology, and ethical issues.
Delegate your assignment to our experts and they will do the rest.
Analysis of the Causes
Culture
Cultural related problems arise from the culture clash between the home country and the host country. All countries around the world have their unique way of life that differentiates them from their neighbors. Culture plays a significant role in determining the success or failure of the company in the international market. A company that is unable to acculturate is likely to face significant challenges due to culture clash (Peng & Meyer, 2011). Hofstede’s dimensions of cultural differences help a country to understand the different cultures in each market and to develop appropriate strategies that can take advantage of the prevailing culture to enhance business growth.
Geert Hofstede came up with five cultural dimensions that assign a score to each country’s beliefs. The five dimensions according to the Hofstede model include power distance, individuality, masculinity, uncertainty avoidance, and long-term orientation. Harley Davidson must understand all the dimensions and how they relate to each country. Similarly, the company must understand the culture of the home country to develop appropriate strategies that enhance its operations and long-term profitability (Peng & Meyer, 2011). A clear understanding of the cultural differences in each country will help Harley Davidson to acculturate and develop market-oriented strategies for its operations in the different markets.
Technology
Technology determines how successful a company will be in the market. Harley Davidson must embrace the latest technology in its operations to benefit from production efficiency, performance, and energy consumption. Similarly, technology can enhance the ability of the company to innovate and address some of the problems faced in the market. The company can also capitalize on technology to develop a competitive advantage over its competitors in the global market. The adoption of new technologies in the market can help reduce the overall cost of producing motorcycles assisting a company to benefit from cost leadership strategies (Steers & Nardon, 2014). Such a move can also improve the margins of Harvey Davidson and enhance the returns of the company to its shareholders. Technology can also enhance communication throughout the company which is essential to obtaining feedback from the customers and also communicating the policies of the companies. Similarly, it can strengthen the sharing of ideas and innovate.
Technology can significantly affect the performance of the company in the global market. Companies that are unable to embrace technology are likely to be disrupted by their competitors who might possess superior technology (Steers & Nardon, 2014). Harvey Davidson must, therefore, understand that its ability to compete in the global market depends on how flexible it is and how it can capitalize on technology to offer cutting-edge solutions that exceed the expectations of the customers.
Ethics
Ethics is a critical issue that every business must consider. Ethical behavior determines the success of the company in the global environment. Companies must consider the implications of their operations not only to the environment but also to the employees, the customers, suppliers, government and the local community. Company operations must promote the well-being of all stakeholders otherwise related ethical challenges will occur future affecting operations of the company. All businesses irrespective of their sizes must understand ethical theories applicable to their operations and how they can ensure that their activities in the market are ethical and promote the good of all stakeholders (Steers & Nardon, 2014). Harvey Davidson must, therefore, ensure that it considers ethical relate issues in all its operations to reduce any ethics-related matters. The company should not engage in immoral activities that can taint its image in the future.
Justification and Evaluation
The recommended solution in each problem will address some of the critical issues faced by the company in the international market. Acculturation, adoption of latest technology and ethical behavior can enhance business performance in foreign and domestic markets. The adoption of the solution will also improve the image of the company and guarantee its long-term growth.
Theories and implementation
Culture conflict theory applies to international operations given that the company should address any conflicting issues between the host country culture and the home country culture. Utilitarian and deontology ethical arguments also apply to the company since it must not only consider the outcome of its action but also the act itself. Lewin change management model will also be used to change the current operations of the company at the home and international market to accommodate the desired solution. The implementation of the solutions will be done according to the unique characteristics of each country (Peng & Meyer, 2011). The process will involve a country analysis followed by the formulation of appropriate solutions or strategies for each country then implementation and evaluation.
References
Peng, M., & Meyer, K. (2011). International Business - EMEA Adaptation . London: Cengage Textbooks.
Steers, R., & Nardon, L. (2014). Managing in the Global Economy . Hoboken: Taylor and Francis.
