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HARLEY-DAVIDSON MERGER AND ACQUISITION From the very beginning of history as a company in 1903, Harley-Davidson was held by family ownership. Company had survived through Great Depression in 30 s. World Wars made noticeable influence on H-D. Supplying army company improved quality and gained priceless experience and brand.
After war strategy changed closer to customers needs. In 1965 the company made its first public offering on the stock market and privately-held family ownership ends, and in 1969 merged with AMF (American Machine and Foundry). At that time the company was producing 14000 cycles per year. The merger upheld Harleys growth with financial strength of AMF (H-D Brochure 5).
In 70 s industry experienced a decline. A flood of imports from Japan and quality problems created major problems for the company. In 1981 thirteen members of Harley-Davidson's senior management purchase the company from AMF in a leveraged buyout and implement new quality management and manufacturing methods (H-D Brochure 5). It accomplished this turnaround by being one of the first US companies to use Just in time inventory policies, statistical processes and employee involvement programs.
In 1982, the company convinced the International Trade Commission (ITC) that the surplus of imported Japanese bikes were a threat of injury for industry. Additional tariffs were imposed on the imports for five years, giving the company a chance to revitalize its place in the market. It did this in just three years by retooling and streamlining its operations. Public ownership returns in 1986. Harley-Davidson stock begins trading at $ 11 per share at its Initial Public Offering.
The Motor Company regains its top position in the U. S. super heavyweight market. In 90 -s the main strategy accent was put on financial sector and following consumer demands satisfaction.
Eaglemark company began in 1993 as an independent company with Harley-Davidson holding a minority stake. Following Eaglemark's success in achieving our initial goals, Harley-Davidson acquired essentially full ownership in November of 1995 to fully benefit from future growth and value creation. Eaglemark was established to better meet the financial needs of Harley dealers and owners, while producing attractive returns. In 1998 Harley-Davidson acquires Buell Motorcycle Company. Although still a start-up operation- approximately 1, 400 Buell units were shipped in 1995, the Buell team is continuing to explore and evaluate new opportunities in the sport / performance market. While traditional sportbike's utilize complex technology with the sole purpose of increasing speed, Buell's mission is to develop and employ innovative technology to enhance the ride and give Buell owners a motorcycling experience that no other brand can provide.
In 2003 the companys subsidiaries are wholly owned except for its joint venture with Porsche AG, of which the company owns a 51 % share. The accounts of the joint venture with Porsche AG are included in the companys consolidated financial statements with an appropriate adjustment reflecting Porsche AGs interest in operating results and net assets. Prior to August 2003 H-D Financial Services participated in a joint venture with Transamerica Distribution Finance to provide inventory financing to the companys European dealers. (2003 Annual Report 62) The Company is involved with government agencies and groups of potentially responsible parties in various environmental matters. (2003 Annual Report 52) Harley's strategic objective is to continue providing safe, high technology heavyweight bikes and keeping customer satisfaction at high levels. This quality vision more than doubled Harley's market share and increased its brand loyalty. Conclusively, I should state that mergers and acquisitions affected strongly the directions of Harley-Davidson activity throughout its history. Now company is in very firm position and has ability to invest huge funds in future.
The last Strategy Plan of company declares: to grow value and strengthen the brand (2003 Annual Report 8). Bibliography: 2003 ANNUAL REPORT. HARLEYDAVIDSON, INC. 2003. Homepage. < web > HARLEYDAVIDSON MOTOR COMPANY BROCHURE.
HARLEYDAVIDSON, INC. 2002. Homepage. < web >
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Research essay sample on Harley Davidson Merger And Acquisition
