Strategic Management:
Appendix 2
TEAM 5
Executive Summary
Big Loud Motorcycles Inc. (BLM)
 Revenue increased 8% annually
 Profits grew 12% annually
 42.1 % US market share

Struggle with international
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.”
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
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
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
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
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
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
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
 State helmet laws
General External Environment cont.
 Technological opportunities
 Increased use of robotics in manufacturing
 Online purchasing
 Technological threats
Internal Analysis
 Strategic Managers’ Strengths
 BLM’s CEO is very hands-on
 Strategic Managers’ Weaknesses
 BLM’s CEO is very hands-on
 Corporate Structure Strengths
 Organized into different product division
 Corporate Structure weaknesses
 Company is not organized around geographic market
Internal Analysis cont.
 Corporate Culture Strengths
 BLM employees believe in the product
 Company is very people oriented
 Company emphasized open communication
 Corporate Culture Weaknesses
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

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
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
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
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.
The “3” Alternatives
1. What: Offer more bikes that are tailored to fit
women. Most of the company’s bikes are heavy and
designed for men./
2. What: BLM should advertise and promote its
current line motorcycles.
3. 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.
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