1. Strategic Management: Appendix 2
Team 5

2. Executive Summary Big Loud Motorcycles Inc. (BLM)
Revenue increased 8% annually
Profits grew 12% annually
42.1 % US market share
Struggle with international

3. Company Vision/Mission
Vision Statement:
“Build the world’s best motorcycle product so that customers can experience joys of motorcycling.”
Mission Statement:
“Continue expanding its extensive line of motorcycles and accessories and to continue developing product features that help make motorcycling enjoyable and safe.”

4. Company Goals Achieve sales and profit growth of at least 4% a year
Build relationships with dealers and customers
Continuing innovation for new safety features
Increase global revenues from 8% to 10% annually

5. Company Policies/Values
Employees are the reason behind success and their contributions are valued
BLM is committed to environmental responsibility
Dedicated to providing customers with outstanding product value and service

6. Corporate and Competitive Strategies
Corporate Strategy: concentrating on product and market development
Competitive Strategy: defending their dominant market share by using differentiation to provide the best possible products

7. External Analysis Industry/Competition—Five Forces
Current Rivalry Opportunities
Strong industry sales growth
Current Rivalry Threats
High exit barriers
Potential Entrants Opportunities
Government Regulation
Bargaining Power of Buyer Opportunities
Products purchased are differentiated and unique
Bargaining Power of Buyer Threats
Buyers have full information
This is an opportunity because competitors wont compete as fiercely for a share of the market.
It’s a threat because the specialized machinery and work force can only be used in this industry, making it hard for them to leave.
There is a lot of government regulation on the manufacturing and sale of motorcycles creating a barrier to entry on competitors.
There were no potential entrant threats found.
There are many different unique motorcycles that can be found desirable by any who is in the market making this an opportunity for the industry.
They can easily look up their competitors website compared to your own and bargain for the best deal.

8. External Analysis cont.
Bargaining power of supplier opportunities
Suppliers do not have ability to do what buying industry does
Bargaining power of supplier threats
Suppliers’ products are an important input to industry
Substitute products opportunities
Substitute products threats
There are several substitutes

9. General External Environment
Economic opportunities
Personal disposable income is around 37,682 and is forecasted to continue increasing
Economic threats
Unemployment levels are currently rising and are forecasted to continue increasing as the economy slows down
Demographic opportunities
The U.S. population is increasingly diverse
Demographic threats
Cost of higher education continues to increase, as does the amount of student financial aid

10. General External Environment cont.
Sociocultural opportunities
More “gold-collar” employees in the workforce
The increasing popularity of “green” issues
Sociocultural threats
Public image of motorcycle riders is not always positive
Political-legal opportunities
State helmet laws
Political-legal threats

11. General External Environment cont.
Technological opportunities
Increased use of robotics in manufacturing
Online purchasing
Technological threats

12. Internal Analysis Strategic Managers’ Strengths
BLM’s CEO is very hands-on
Strategic Managers’ Weaknesses
Corporate Structure Strengths
Organized into different product division
Corporate Structure weaknesses
Company is not organized around geographic market

13. Internal Analysis cont.
Corporate Culture Strengths
BLM employees believe in the product
Company is very people oriented
Company emphasized open communication
Corporate Culture Weaknesses

14. Internal Analysis cont.
Production-Operation Strengths
Reconfigured layout to be more efficient
Production-Operation Weaknesses
BMI has over 100 suppliers
Marketing Strengths
Company Logo and Repeat Customers
Marketing Weaknesses
Narrow Target Market and Issues with Global Marketing

15. Internal Analysis cont.
R&D Strengths
Expansion of Facility
R&D Weaknesses
No Global R&D Facility
HRM Strengths
Tuition Reimbursement
HRM Weaknesses
Custom Orders create excess stress

16. Internal Analysis cont.
Information Systems Strengths
Access to Online catalogs, magazines and direct mail make sure employees and customers are well informed
Information Systems Weaknesses
Web site is only in English

17. Strategic Issue Example
What is the issue?
-average customer is a married man in his mid- forties with an income of 79k.
-The fact is that BLM’s target market is very narrow
Why is this an issue?
-51% of the population is female
-significant marketing opportunities being missed

18. Strategic Alternatives
What: Offer more bikes that are tailored to fit women
How: Find out what female riders want in a motorcycle. (ex. Online survey)
Who: The marketing area is responsible for creating and administering the surveys.
When: Immediately
Where: In the U.S. market. The implementation plan will determine where the new product will be produced.

19. The “3” Alternatives
What: Offer more bikes that are tailored to fit women. Most of the company’s bikes are heavy and designed for men./
What: BLM should advertise and promote its current line motorcycles.
What: Acquire an established motor scooter manufacturer. That produces a two-wheeled vehicle with a step through frame that’s light weight, maneuverable, and stylish designs that might have a strong appeal to women.

20. Recommendation
Alternative 3 – because they could appeal to a wider variety of consumers and exchange “tricks of the trade” to create better products in the future.
Implementation- will take all of the following
Changes in Organizational Structure
Changes in Organizational Culture
Funding