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Economic Indicators Paper
Harley-Davidson is an excellent example of an American company that turned itself around from the brink of bankruptcy back to profitability. With a hostile takeover, the American Machine and Foundry Company (AMF) acquired Harley-Davidson and on the verge of bankruptcy, AMF sold the company to a small group of investors who then made significant changes.
These investors reduced the number of motorcycles produced each year, improved the quality of the motorcycles, and began customizing bikes to the individual customers' wants. Instead of trying to match the Japanese cycles, management deliberately exploited the "retro" appeal of the machines (Wikipedia, 2004). Management invested heavily in their factories, modernizing them and streamlining production lines. They also invested in the appearance and feel of their retail stores (USA, 2003). Today's stores are wide aisled and clean, giving space to the Harley-Davidson clothing line. The company now makes more money selling licensed merchandise featuring the Harley-Davidson logo than selling motorcycles (USA, 2003). Harley-Davidson's customers' range from the bearded, beer-belly stereotypes to "yuppies." Their largest market is the middle to upper class, middle-aged man. For these men, owning a Harley has become a status symbol. Harley-Davidson is part of the American dream.
The revitalization and success of Harley-Davidson is due largely in part from management's vision and their ability to recognize economic factors and act accordingly. In looking at the Harley-Davidson Company today, it is hard to imagine that only a short time ago they were on the brink of bankruptcy. Harley-Davidson's fu ...