Harley Davidson Sales Program

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Harley Davidson Company: Sales Program Ashley Jensen, Lindsey Meis, Danielle De Geest, Nathan Beattie Sales Management, BA327 Dan Quinlin February 19, 2008 Harley Davidson Company: Sales Program I. The Environment Managers and organizations need to anticipate and adapt to change by keeping in touch with the environment external to the company. At one point, Harley Davidson almost went bankrupt when they lost connections with their customers and the external environment. A. External Environment 1. Economic factors such as economic growth, interest rates, and exchange rates can all have a huge effect on the profitability of a company. Everyone knows that interest rates and exchange rates all effect consumer spending, especially for luxury items. Harley Davidson products are considered unnecessary or luxury items so they take the biggest hit. With the recession scare as well, Harley Davidson is definitely struggling a bit at the moment. 2. One of the biggest political aspects on the Company is the motorcycle tariff. The petition was filed under Section 201 of the Trade Act of 1974, known as the "Escape Clause," which allows an industry to request import relief from foreign competition when increasing imports are causing or threatening serious injury to the domestic industry. In these cases, the ITC investigates the claim and then reports to the president. If the finding is affirmative, the executive branch examines the matter and the president makes a decision within 60 days. In 1983, Reagan approved the tariff. Unfortunately, this tariff seemed to create an economic hit for Harley Davidson. 3. Harley Davidson is considered to be one of the most technologically advanced motorcycle companies in the world. Harley Davidson has expanded their design horizons with their implementation of REAL D, which allows them to more

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