How to implement a dual language program in an already established Dissertation

How to implement a dual language program in an already established elementary school - Dissertation Example From this research it is clear that language is one of the most important skills a person can have; it is a comprehensive and powerful human ability. It is a means of communication; a system through which people express themselves, think, act collaboratively and above all language is also a means to record events. In short, language is a skill that is as important and as natural as breathing. Pinker has aptly described language as â€Å"quintessentially human†. A person however is not born speaking a language; it is learned and the learning process starts at the time of birth. In light of the work done by linguist Noam Chomsky, Mason states language to be a â€Å"specific skill†. Elaborating on Chomsky’s description of language as an inherent faculty, Mason in his lecture â€Å"Learning Language† said that man was born with a set of rules related to language in his head and he called these set of rules â€Å"Universal Grammar†. Children show a natur al tendency towards language acquisition. Language acquisition occurs through the numerous experiences of everyday life. Acquiring language without any systematic effort is called first language acquisition. Language acquisition takes place during conversation; when adults talk, children respond and thus grasp the basics of a language being spoken. The pattern of interaction between parents and children may differ with cultures but the rate at which the children develop as language users remains the same throughout the world. (Clark, 2000). Children learn the language they are exposed to (Linguistics 201: First language acquisition, undated). Every child learns the first language without the need of any formal lessons (Pinker, 1995). Clark has described language acquisition among children as a part of the overall physical, social and cognitive development of a child. In Clark’s opinion, children between ages 2 and 6 can rapidly acquire a language and mostly by the time they t urn 6, they are proficient language users. Although a lot has been said and written about the development of language in a child, a great deal remains to be explored. The language of a child is a constantly developing process which undergoes many changes. The children seem to acquire the first language quickly, early and with few mistakes. A child’s experience with language and his interaction with others teach him the sound-meaning relationship and help him comprehend the purpose it represents. Although, the rate at which children acquire first language skills may differ, there is little difference in the pattern of development between the languages (August and Shanahan, 2011, p. 357). According to Clark children acquire communicative competency naturally and inherently, and then develop an understanding of the grammatical rules of the language. The structure of the language develops with thinking abilities and social interactions of the child. As the language skills develop , children become conscious of the social situations around them and learn to think and behave accordingly. Second Language Acquisition Stephen Krashen a well known linguist identified the difference between learning and acquisition (Luria et al, 2005, p. 8). In his theory of the second language acquisition, Krashen defined acquisition as a subconscious and instinctive process of constructing the structure of a language quite similar to the way a child picks up his first language (Macaro, 2010, p. 5). Learning on the other hand, is a conscious process based on formal instruction and involves conscious learning of a language. Krashen has described learning as â€Å"less important than acquisition† (Schutz, 2007). Second language acquisition is the learning of another language once the first language has been established. The concept of acquiring proficiency in another language is not new; for centuries, man has found the idea of bilingualism/ multilingualism quite fascinating

BRAHMS REQUIEM Assignment Example | Topics and Well Written Essays - 250 words

BRAHMS REQUIEM - Assignment Example He had filled the workplace of Meister. The courts and rear ways of the poor quarter in which he existed were continually resonating with the tunes of youngsters, in which he joined generously, with his high soprano voice. He was a fun loving, Normal sprightly kid, sound and ordinary youngster. There was never any uncertainty as to his turning into an artist. From promptly adolescence he took in everything his father could show him, read everything. In the first place he could lay involved, rehearsed with un- Music straying eagerness, and filled reams of Study paper with activities and varieties (Brahms, 1-9). 2. Compare the experience of listening to Brahms’ Requiem to other musical performances you have seen this semester. To what extent is the Ellen Eccles a fitting venue for a performance of this kind? Different arrangers on their aesthetic work have investigated the key existential address in significantly particular courses through a medium that, as I would see it, is unsurpassed around the different manifestations of creative declaration in its capability to achieve the center of our being. Whats more when you have the chance to really sing these meets expectations, the knowledge of them could be upbeat. It doesnt get significantly more particular than that! What can one say in regards to the Mozart Requiem? The quick remarks made here address its energy and to the virtuoso of a writer whose blessing has given mankind the most wonderful and roused musical works ever to jump from the creative ability. The complexity between the Mozart and the Berlioz in their musical structure and inclination is hitting with Berlioz commitment being no less esteemed for the distinction. As Lynn has noted, the specialized requests on the soloists of both structures are considerable and this however shows that Brahms verbalization the extent that his

Why is Chinas Economic Growth Slowing Down Essay

Why is Chinas Economic Growth Slowing Down - Essay Example China single-handedly accounts for approximately one-fifth of the total world economic output; thereby, a slowdown in Chinese economy will hinder a global recovery. In addition, several of Asia’s largest and emerging economies have struck deal with China as a trading partner; hence, a downturn in Chinese economy will adversely affect them. Until 2010, Chinas economic growth rate was more than ten percent, which encouraged officials to boost domestic consumption combined with a reduction in exports to accomplish sustainable growth. Consequently, while the construction and industrial boom decelerated, the retail sales held up strong. Many of today’s economic issues can be traced back to the global financial crisis period between 2008 and 2009 when China attempted to accelerate economic growth through injecting capital and boosting government spending. Back then, the central government pumped tremendous amounts of money in the economy by investing in infrastructure and con struction industries. However, on the downside, this created excess capacity, property prices soared sky-high with a simultaneous rise in inflation and consumer costs. Faced with these economic plights and the fear of Chinese economy overheating, policymakers then implemented measures aimed at curtailing lending and slowing down inflation. Unfortunately, these measures along with a sharp drop in the global demand for Chinese goods triggered the recent cycle of a slowdown. A fact that Chinese policy makers failed to take into account is that credit does no more good to economy than steroids do to body, every time bigger injection are needed to maintain the desired effect. In 2011, Chinese economic growth rate was 9.2 percent in contrast to the rate of 10.4 percent during 2010. Despite the imminent cyclical weakness that will decelerate China’s economy, even more, Chinese officials claimed that there is a way out. The World Bank has also supported this argument as it stated tha t the prospects for a soft landing appear positive, as China has largely mitigated the domestic property bubble invigorated by speculation. Chinese officials hold that they are working to temper the super economic growth towards more sustainable growth without triggering an economic recession. One of such simulative measures included the recent cut in interest rates after June by The People’s Bank of China. Likewise, the central government is striving to spur growth by relaxing reserve requirements so that bank lending could accelerate, which in turn would lead to greater injections of credit in the economy (Bradsher â€Å"Heavy Lending Creates a Surge in Chinese Economy†). Although, the construction and industrial sectors have registered a slowdown; however, retail sales have stayed strong. The Chinese government is determined to rebalance the economy by reducing reliance on investment and exports and escalating domestic consumption (Bradsher â€Å"Chinese Official R eaffirms ‘Rebalancing’ of Economy†). Policymakers hold that the government is empowered with myriad tools to prevent an economic collapse. They pointed out how unlike other major economies such as America and United Kingdom, China managed to survive through 2009’s recessionary period, marked by extensive layoffs and social unrest. Officials contend that they are deliberately aiming for sustainable growth after double-digit growth registered in the previous years that overheat the economy. Therefore, for them, the economic slowdown is solely a planned action. Official economic statistics released by China are futile in stopping the economic squabbling about the soft landing prospects for Chinese economy. The increasing

Market Equilibration Research Paper Example | Topics and Well Written Essays - 500 words

Market Equilibration - Research Paper Example The point that balances the compensation packages for the benefit of both the demand and supply sides typically refers to a state of equilibrium. It is important to note from the outset that equilibrium is just but a pedagogical device (Boyes & Melvin, 2012, p. 57). The reality is that markets [free markets inclusive] are always in the process of working, and that there are no static equilibrium prices and/or quantities as suggested in theory. Nonetheless, the process always tends towards an equilibrium point. The market equilibrating process in a free market works exclusively through the forces of demand and supply. Thus, no group of buyers or sellers holds a domineering influence in setting market prices. Accordingly, all consumers are considered rational decision makers with parallel objectives of maximizing their utility, and that demand accurately measures the quantity that buyers would be willing and able to acquire at a unit price (Gandolfi, Gandolfi & Barash, 2002, p. 17). Simply put, demand is majorly influenced by lower pricing; such that, any increase in the price of a commodity in a free market structure lowers the number of people (buyers) willing to buy the product; an inverse relationship that sums up the law of demand. Apart from commodity prices, other factors such as income, prices of substitute goods as well as tastes and preferences among others that occasionally come into play not only to alter quantity demanded, but shift the demand curve altogether (Boyes & Melvin, 2012, p. 59). A sample shift in demand curve due to a decrease in income is shown in the diagram below. While buyers/consumers try to maximize their utility by pulling prices downwards, sellers (businesses/firms) endeavor to maximize profit through an upwards price pulling effect. In other words, suppliers strive to make available goods and services in amounts that best help them get the highest

Role of a Management Consultant Essay Example | Topics and Well Written Essays - 2000 words

Role of a Management Consultant - Essay Example B., 2001). The same brand is part of a long, classic, one-on-one competition with its archrival, PepsiCo. Inc. Coca Cola experienced a rapid growth in sales and consumer –preference, thanks to Roberto Goizueta who raised Coca Cola to the heights of performance while he was CEO from 1981 to 1997. Using his sharp analytical skills and market foresight and risk-taking tendency, Goizueta took Coca Cola into the direction of high sales, increasing market-share, revenue gains and high profit margins. He revolutionized how the soda industry is run and showed the world that just by focusing on Coca Cola’s principle black beverage; the company became a top-notch giant. This very philosophy inspired Coke’s followers, and even the Board of Directors, which included tycoons such as Warren Buffet, Herbert A. Allen and Donald Keough. They remained admirers of this approach and frowned upon any notions of diversification, unlike what was happening inside PepsiCo. Throughout the nineties, through this very approach, Coca Cola saw its rise in the world of beverage as an undisputed winner over PepsiCo. Inc. Goizueta took some very successful decision during his time, one of which was to form a new company under the name Coca Cola Enterprises, in 1986, which handled the US bottling operations for Coca Cola. This, immediately, helped Coca Cola in terms of the debt burden and also, raised their stock volumes, while reassuring quality bottling and distribution. (Cravens & Piercy, 2009). According to Cravens and Piercy (2009), this move turned out to be quite a profitable one as Coca Cola could erase off $2.4 billion from the balance sheet. Moreover, having formed Coca Cola Enterprises, US bottling operations were handled well and timely distribution channels were assured. He was known to be risky, as he himself used to admit. His believes were of the nature that risk-taking is a necessity for growth and development. In a growing consumer-market, playing safe all the time could mean losing out on opportunities and business. Goizueta is renowned for another important move: his non-contemporary approach of globalization of brands. ‘Think global, act local’ was the underlying philosophy of Goizeuta to expand and capture foreign markets. Unlike the general wave of globalization, he insisted that, to develop a successful multinational brand, it was important to think globally while acting in the local context. He explained that standardization and uniformity represent a strong and consistent image of a brand and it triggers a sense of surety in the minds of consumers worldwide. This uniformity can help create a very powerful image of the brand; while also considering vital selling points and marketing campaign specifics of differing cultures and geographies. At the very end of all this positive period, it did become quite apparent that the direction in which Coca Cola was heading into, had a dead-end. Arguably, his headstrong, upfro nt style of leadership, even though raised Coca Cola to reach new heights in the short-run; however, his moves, somehow, created a recipe for future disaster. His decisions focused more on the bottling operations than the actual customers. It is important to note that Mr. Roberto Goizueta maintained that Coca Cola did not need diversification to increase revenue. Instead, according to Suhaib Riaz (2008), he borrowed millions

An Empirical Study on Why Sociological Research and Theory Focus on Essay

An Empirical Study on Why Sociological Research and Theory Focus on Issues of Identity - Essay Example Vander Zanden (1990a) presented this as both tackling a problem, is faced with initial perplexity and assumptions, then comes the search for evidence, perceptive reasoning, false leads and eventually, or ideally really, the final sense of victory. In contrast yet the justification as well, Zanden continued, (1990b), "detectives undertake to identify and locate criminals and collect evidence to convict them in a court of law. Sociologists develop concepts and theories to explain people's behavior. Even though their goals may differ, detectives and sociologists attempt to answer two types of question: "Why did something happen" and "Under what circumstances is it likely to happen again" In brief, both attempt to explain and predict." In grasping both comes thereafter the issue of identity issues. Simply put, one needs to know the proper approach and yet even before that, how to do it, when to do it right and why it is best to do it right. The late Professor C. Wright Mills (1959a) aptly addressed this when he said, "Neither the life of an individual nor the history of a society can be understood without understanding both. The history that now affects every man is world history." Very true. Identity issues do confront every single citizen of this world no matter the creed, race or religion. From social identity issues, to political and gender issues, all these help shape and unshape a nation and the many communities, societies in it. For anybody and everybody to achieve triumph or come close to overcoming these issues hounding the world and its populace, imperative then to understand how these personal battles have become public issues. Sociological imagination as Mills labeled it (Mills 1959b) and explained as the ability to see our lives, concerns, problems and hopes entwined within the largest social and historical context in which we live. (Zanden 1990c, p.7) And from thereon comes government policies, formulated and designed to address the specific public issues that have become more than social issues. Ours is a "human-made world," as yet another renowned sociologists Zygmunt Bauman and Tim May pointed out in their joint

Hog case study Essay Example for Free

Hog case study Essay Product Life Cycle: Late Growth / Early Maturity I. Uncertainties that may affect industry structure II. The plausible assumptions about each important causal factor The uncertainties that exist for the Motorcycle Industry are fluctuations in the following categories: government regulations, price of supplies, Fuel Cost, Global Demand for motorcycles, Product innovation, customer loyalty value (CLV), target market, and market share. The casual factors that drive these uncertainties are an important factor when forecasting the future of the Motorcycle Industry. The most likely scenario for government regulations will push the industry towards going â€Å"Green† and becoming more environmentally friendly by requiring lower emissions. They will require the industry to improve these emissions standards. Currently the average motorcycle averages 40 MPG (miles per gallon) in the city and 50 MPG on highway but they still emit smog into the environment. The industry will most likely use the fuel consumption statistics to their advantage by relating to the current price of gasoline and the fact that the average car gets 20 MPG and SUV’s get even less at about 16 MPG. Price will be a major uncertainty for the industry. The industry relies on other companies to provide them with materials so that they could assemble the bike. The increasing cost of transporting these materials from the manufacturers to the motorcycle assembly plants are going to increase and therefore lead to increase in the operating cost for the industry and lead to higher price for the finished product resulting in no value added. The price of the finished product is a very important factor for the industry because all the players in the industry are trying to attract the younger target market and are competing on price. The Japanese manufacturers have a mindset that they are willing to incur short-term loss so that they could gain market share. This strategy is bad for the industry because every company will try to reduce its prices and will eventually not be able to make significant profit. This fact needs to be carefully monitored so that no one player tries to influence the overall industry. Economic conditions in the U. S. significantly affect the firm’s performance from year to year. During an economic recession, Harley-Davidson will feel its effects since consumers tend to tighten up discretionary spending during rough times resulting in no value added to the company. This is what is currently happening in the economy. Global demand fluctuation also is an important factor to the overall success of the industry. The global demand for the heavy weight motorcycles grows at an average core rate of 7% to 9% per year and has averaged 8. 6% since 1991 for Harley Davidson. This trend will most likely continue because of the Baby-Boomers who previously purchased these bikes will continue to do so as they live more active and adventurous lives then previous generations. The baby boomers are more affluent then previous generations. The global demand will rise because of this fact. It will also rise because they are not only catering to the older consumers but also towards the younger generation and women. The industry is creating bikes that are cheaper and faster that appeal to the younger consumer. This trend will spread globally because of the Blue Ocean created by Harley Davidson because of the Rental Programs, and the Riders Edge programs that will be emulated by the other players in the industry. This will lead to the Red Ocean scenario again and companies will compete at the same level within the industry. We also believe that players in the industry will make strategic alliances with other industries to cross sell their products such as Harley currently produces clothing and accessories to increase and diversify its revenue sources. The industry will continue to compete on all aspects such as price, quality, and functionality. This intense competition will lead to a Red Ocean until a new innovator can emerge. The industry will most likely continue to invest in Research Development to improve the quality of their products, to try to innovate, to get a better product out to the market and even innovate the way they assemble and market their product to the consumer. Also, personalization and customization of motorcycles will increase as television programs such as American Choppers, and West Coast Choppers are glorifying them. All these factors will lead to an expansion of the Target market and more intense competition. Customer Loyalty Value will most likely rise for the industry because many of the individual producers have a wide variety of products that they can offer to their customers. The industry will most likely target previous customers more to get them to purchase a secondary bike. This trend will continue since the largest buyer group numbers are steady for the next several years, currently there are 41 million US men in the age group of 35 to 54 and that number increases to a little over 41 million in 2020. Also currently there are 80 million baby boomers of those the oldest ones are entering their late 50’s and the youngest boomers are just entering earlier part of their 40’s. These groups will be heavily targeted by the industry to either purchase their first motorcycle or 2nd motorcycle. III. Plausible assumptions about each important casual factor The most important casual factors are the level of quality of the motorcycles, product innovation and marketing. These three factors are predetermined meaning that change is likely to happen  nd is largely predictable and they are constant meaning that these areas in the industry are unlikely to change. However, product innovation is uncertain meaning that product innovation depends on other irresolvable uncertainties in the industry. To begin with the first important casual factor the level of quality, we know that if the level of quality for motorcycles increase, it is likely to lead to an increase in other areas as well such as price, sales, market share and customer retention. (Cash flow, interrelationship, linkages and value added). The next important casual factor is product innovation. Similar to quality, if product innovation increases it is likely to lead to increases in other areas such as price, sales, market share, customer retention and gaining new customers. Lastly, marketing is another important casual factor. We know that if marketing is increased and if it becomes more innovative in ways there will be increases in other areas such as sales, market share, customer retention, new customers, advertising and promotion, branding and in relationship marketing resulting in value added. IV. Assumptions about individual factors into internally consistent scenarios. Scenario 1: If quality increases it is likely that performances in other areas are likely to increase as well. Improving quality is always beneficial and important to execute any strategic sequence successfully. The value curve, which is the basic component of the strategy canvas, depicts relative performance across the industry’s factors of competition. Creating a new value curve involves identifying which factors of the industry should be eliminated, reduced, raised well above and created or offered in regards to the industry. So let’s use Harley-Davidson as an example. Eliminate-Reduce-Raise-Create Grid: Harley-Davidson Eliminate Company staff positions Raise Tariff protection against global competitors Reduce Inventory levels Create JIT inventory practice Employee involvement Materials-As-Needed program When it came to improving the quality of the business Harley-Davidson eliminated the positions of senior vice president in marketing and operations because there was no value added. The style of leadership at the company was very effective because they were able to identify weak links in their operations and cut out the extra manpower that was muda. The company reduced inventory levels with the hope that it would make quality problems more apparent and force employees to take action. The tariff protection the company sought to gain time and protect itself from the Japanese inroads in the heavyweight segment was a leading factor that raised them above the industry standards. The company’s OWC that was created was the use of JIT inventory practices, employee involvement and the SOC (statistical operator control). Workers were required to participate in the newly formed circles that were made directly responsible for improving motorcycle quality. A Materials-As-Needed (MAN) program was implemented to free up, as much needed cash by reducing WIP inventory, which led to economies of scale and LC. These changes also led to increased quality. Productivity improvement went up by over 50%, WIP inventory was reduced by 75%, scrap and rework went down by 68%, U. S. revenues increased by over 80%, international revenues by 1. 7 times, operating profits increased by $59 million and market share in the heavyweight segment increased by 97%. Harley-Davidson’s net revenue increased from $1,350,466 in 1995 to $5,015,190 in 2004 in millions. Scenario 2: If product innovation increases it is likely that performances in other areas will increase as well. Product innovation is the new business imperative. It drives growth and future success for companies. Most companies are trapped competing in red oceans because they define their industry similarly, focus on the same buyer group, define the scope of the products and services offered by their industry similarly and they focus on the same point in time and often on current competitive threats in formulating strategies. However, Harley-Davidson has not followed these same guidelines, so they are not currently trapped in the red oceans. Harley-Davidson was selected as an outstanding corporate innovator by PDMA in 2003 (Product Development Management Association) because of its established brand, its strong connection with customers, and because of its continued commitment to product innovation. The company focuses on optimizing the â€Å"customer experience,† and as a company has grown from 40,000 units/year in 1998 to 264,000 units/year in 2002. Their use of multiple and novel venues to gather customer needs and preferences information to guide their new product efforts, while employing a formal Concurrent Product Process Delivery Methodology (CPPDM), has kept their new product engine running at peak efficiency. Several unique elements and concepts in their process such as â€Å"swirl,† â€Å"bins,† and â€Å"cadence,† ensure the degree of innovation, speed to market, match of development resources, and financial viability of individual projects as well as the entire new product portfolio. Scenario 3: If marketing increases performances in other areas is likely to increase as well. Marketing for any company in any industry is extremely important. How well a product/company is marketed leads to the success of that product/company. Blue oceans are defined by untapped market space, demand creation and the opportunity for highly profitable growth. In order to execute a blue ocean strategy market boundaries must be reconstructed and must reach beyond existing demand. This is in fact what Harley-Davidson did to create a blue ocean for itself and increase the brand name and company revenues simultaneously. The company’s three strategic constants: passion, sense of purpose and operational excellence are the cornerstone of their blue ocean strategy. There is no competition, as seen by being the only U. S. manufacturer for 46 years, and petition to end protective tariffs. All bikes are customizable, and some say that they are made to be tinkered with (not as hands-off as can be, therefore redefining premium brand). The company has a huge fan club and a phenomenally powerful brand and its quintessential strong emotional connection keeps them in the leadership position. Undoubtedly, Harley-Davidsons greatest marketing asset is the Harley Owners Group, with one million member’s world wide making it the largest motorcycle-sponsored club in the world. Harley-Davidson is continuing to improve value innovation by still focusing on beating the competition, making it irrelevant by creating a leap in value for buyers and their company by opening up a new and uncontested market space. They have done this with the implementation of their Rider’s Edge and Rental Programs. The rental program was implemented to hook customers and entice them to buy a Harley. This program is offered by 250 dealers and is available in 52 countries. Survey shows that 32% bought a bike or placed an order and another 37% planed to buy within one year. The Rider’s Edge Program offers riding lessons that last for four days and cost students $350. Approximately 70% of students in the program purchase a motorcycle within 18 months and about 40% of the students are women and 30% are under the age of 35. This buyer learning relationship created by Harley-Davidson has increased sales, new customers and targets the untapped market of women highly. This value innovation has led to LC for people who have learned to ride the motorcycles through the program and also to the instructors teaching the students. It has led to increased sales and revenues from the 70% of students that buy within 18 of completing the lessons. This continues to be a huge win for Harley-Davidson. V. Analyzing the industry structure that would prevail under each scenario McKinsey Model INDUSTRY ATTRACTIVENESS Competitor Profile WeightRateTotal Market Growth Rate. 102. 20 Marketing Size. 103. 30 Competitive Structure. 203. 60 Seasonal/Cyclical. 103. 30 Industry Profit. 102. 30 Tech Demand. 204. 80 Eco of Scale. 102. 20 Unique Social. 102. 20 TOTAL12. 90 Competitor Profile WeightRateTotal Market Share. 204. 80 Tech Strength. 203. 60 Marketing Skill. 203. 60 Company Profit. 102. 20 Management Skill. 102. 20 Ability to compete on price quality. 203. 60 TOTAL13. 00 9 Cell Matrix for Motorcycle Industry 2004 Competitor Profile Strong Average Weak HiIIE MedIE HOGD LowEDD HiMedLow I= Invest E= Evaluate D= Disinvest The next step in scenario planning is to analyze the implications of each scenario for competition. We will determine the future industry structure, implications for industry structural attractiveness and the sources of competitive advantage. The future growth is largely dependent upon its ability to develop and successfully introduce new, innovative and compliant products. In addition, it must comply with governmental laws and regulations that are subject to change and involve significant costs. Worldwide demand for motorcycles is forecasted to advance to 5. 2% annually to more than 35% million units in 2007, valued at $46 billion. Driven by increased income levels in emerging markets such as India, China, and Southeast Asia, demand for scooters, mopeds and light motorcycles will remain relatively strong, providing continued growth opportunities for motorcycle OEMs and suppliers. The market for large motorcycles will also remain strong, although some concerns regarding future demand have emerged due to the aging customer base and rising insurance costs, especially in the US and Europe. While growth prospects remain solid, especially when compared to the 2% annual growth experienced by the light vehicle industry, the industry will likely go through a restructuring phase in the future. Many of the small competitors will begin to exit the market. The intense focus on price in the Asia/Pacific region has caused Japanese OEMs to begin to abandon Japan as a production base in favor of lower cost hubs like China or Thailand. In China, for example, the largest motorcycle market and producer in unit terms, is rapidly transitioning away from motorcycle toward cars, and in the process overflowing the world market with motorcycle exports. In contrast, rising fuel prices and increasing restrictions on car uses are favoring motorcycles in developed markets. Two separate motorcycle markets exist. The first is centered in the industrialized Triad (US, Japan, Europe), where consumers who already have one or more vehicles see motorcycles as pleasure vehicles. These motorcycles tend to be larger, more powerful machines, which cost on average about $5,000 to $6,500. The other much larger market in unit terms is found in the emerging economies of the Asia/Pacific, where motorcycles are seen as primary family and work vehicles. These vehicles are cheaper, smaller and less powerful than Triad motorcycles. Motorcycles everywhere is being fractured down from, stricter emissions controls to noise limits, from land closures to exclusions from HOV lanes. The motorcycle industry has spent the last 10 years of convincing the public that motorcycles are a form of entertainment and not a form of transportation. The world has been changing with new issues and now advertising is geared toward qualities like dependability, practicality, technology, safety and environmental friendliness. Women control 85% of all the discretionary dollars spent in the US. Ten years ago women represented about 3% of the motorcycle owners. In 2004, they ramped up to 12% in motorcycles. Utilizing learning curve, dealers are beginning to understand their sales people can no longer talk down to a woman. Some have started to hire women as salespeople. Once only men staffed dealerships, women are showing up as techs, service writers, parts counter, and unit salespeople. The behavior has changed. The Motorcycle Safety Foundation conducts training for new motorcyclists. In 2003, they reported that 40% of those signing up for new classes are women. In the case of Harley-Davidson, the Harley rider is now 45 (10 years ago it was 37) and 20% of Harley riders are over 55. Despite the company’s success in the past 18 years, it has difficult time attracting younger consumers, who tend, to go for sporty, fast, technologically-savvy racing bikes produced by its competitors. Harley has been investing in its product to attract a younger buyer. It continues to revamp its affordable Sportster line and its higher-tech V-Rod family with liquid-cooled revolution engines continues to appeal to more youthful market. In addition, its sports bike subsidiary, Buell, is to lure in the Generation Y market. Growth in year-to-year sales was slow, but with the economic downturn in the market, sales in this market segment may increase due to the lower price point. These marketing challenges will force the company to examine their manufacturing, marketing, pricing and every other part of the business. For consumers, this will means better pricing, more value and greater service to attract their more discerning and selective purchase. The industries never stand still. Operations improve, markets expand and players enter and exit. VI. Determining the sources of competitive advantage under the most likely scenario The driving force behind Harley-Davidson’s competitive advantage is its quality, marketing and product innovation so we will determine the sources of competitive advantage in these forms. Quality Harley Davidson’s source of competitive advantage in regards to quality will most likely be its continued use of the productivity triad. Harley’s productivity triad involves employee involvement, use of JIT inventory practices (which Harley renamed MAN – Materials As Needed) and statistical operation control. Quality drives productivity and increased productivity is a source of greater revenue. This can be seen as under Harley’s new system inventory turn increased to 17 and productivity improvement went up by over 50%. This new system allowed Harley to free up cash by reducing its work in process inventory by 75%. This system proves that improved quality does not always mean increased cost because its costs decreased while its U.S. revenues increased by over 80%, international revenues by 1. 7 times, and operating profits increased by $59 million. Their market share under this new system had also increased by 97%. Quality is defined entirely by the customer and end user and based upon that person(s) evaluation of his or her entire customer experience. Through the use of the productivity triad, customer retention will increase as Harley Davidson continues to improve its entire customer experience from how their bikes are sold (utilizing women sales people to make women customers more comfortable), to how the bikes perform. The increased customer retention and productivity triad will result in a differentiation advantage over its competitors thus creating superior value to its customers and superior profits for itself. Harley was able to create a blue ocean by driving costs down while simultaneously driving value up for its consumers. Marketing Harley Davidson’s source of competitive advantage in regards to marketing will most likely be the continued use of its programs such as the Ladies of Harley, the Riders Edge and Rental Program. The Ladies of Harley group cultivates and will most likely continue to cultivate the interest of women riders. This group was sponsored by HOG to support women motorcycle enthusiasts, and to encourage women to become more active within the group. The Riders Edge program offers motorcycle-riding lessons that last for four days and cost students $350. Surveys show that 70% of Rider’s Edge participants purchase a motorcycle within 18 months. This program helps to target the women market (who makes up 40% of participants) and younger riders (30% of participants who were under 35). The future strategy of Harley is to gain market share in the younger rider segment, so it is likely to continue this program. Harley will most likely continue the use of its rental program, which is used to â€Å"hook† customers and entice them to buy a motorcycle. It is said that 32% of participants bought a bike or placed an order and another 37% planned to buy one within a year after renting a Harley. The company will most likely increase the number of dealerships the program is offered in, as it has demonstrated great success. This is a value added to the consumer who gets to experience the feel of a Harley before making an actual purchase, and a value added to the company because it almost guarantees future earnings. These programs will result in a differentiation advantage over its competitors. Product Innovation In regards to production innovation, Harley-Davidson will most likely continue with new product development and upgraded manufacturing technology. With many concerns with environmental health issues, Harley will most likely manufacture a Hybrid or economically friendly motorcycle to entice sales of future consumers who are concerned with environmental conservation and to appeal to current eco friendly consumers. Harley-Davidson’s resources and capabilities together form its distinctive competencies. These competencies enable innovation, efficiency, quality and customer retention, all of which could be leveraged to create a cost or differentiation advantage for the firm and thus creating value for its customers and profits for itself. Harley-Davidson has created a strong differentiation strategy setting itself apart from the crowd and making its brand identity legendary. On the next page, you will find a competitive analysis of Harley-Davidson to one of its existing competitors, Honda. Competitive Analysis HARLEY DAVIDSON HONDA Future Goals? Produce and sale high quality motorcycles. ?Maintain market share. ?Replace some of aging boomer customers by tapping into the youth market. ?Address shifting demographics. ?To make cycles more popular. ?Strengthen themselves as a manufacturing company. ?Strengthen focus on initiatives, quality and technology. Current Strategy? Maintain current growth in traditional segments while taking measures to reach younger customers. ?Keep up with trends and customer needs. ?Increase product line of accessory and apparel. ?Provide motorcycles accessories and services to selected niches? Maintain global viewpoint. ?Supplying products with high quality at a reasonable price. ?To create new technology that offers new possibilities in mobility. Assumptions ?Harley would not be able to maintain ?Market for Harley-Davidson products may be maturing. ?Baby-boomers were aging and may not want to ride motorcycles anymore. ?Boomers will ride into their late 60 and 70’s. ?Manufacturers are more skilled at mass-producing motorcycles efficiently. ?Will continue to be more technically advanced in the industry. CapabilitiesStrengths ?Renewed RD expenditure.? Strong brand identity and loyalty. ?Boomers are living more of an active lifestyle. ?Productivity triad. Weakness ?Some bikes are too expensive for younger consumers. ?Close association with baby boomers. Strengths ?Strong technical advances. ?Have a stronger brand with the younger generation. ?Caters to younger buyers with smaller budgets. Weakness ?Does not have an association with baby boomers who are expected to ride longer. Market Share Harley Davidson maintains a large margin in its dominance in the U. S. Heavyweight Motorcycle market as compared to its major competitors. 2003 2007 US Heavyweight Market ShareUS Market Share 2007 2006 2005 2004 2003 Harley-Davidson 49. 4% 50% 49. 6% 50. 2% 50. 3% Honda 14. 2 15. 1 16. 6 18. 7 18. 4 Suzuki 12. 5 12. 9 12. 4 10. 2 9. 8 Yamaha 9. 2 8. 6 8. 9 8. 7 8. 5 Kawasaki 7. 2 6. 8 6. 5 6. 4 6. 7 However, Harley’s international market share is slightly smaller. For instance, the company has a 38. 4% Canadian market share and a 10. 2% market share in Europe as of 2006. Notably, both of those markets are substantially smaller than the US market. Nonetheless, Harley has a dominant worldwide market share of 33% in what is a growing industry. Operating Metrics Several operating metrics are useful in understanding the company’s position vis-a-vis its largest competitor. Honda’s figures are for its motorcycle business only. Please see chart on next page. 2006 Operating MetricsOperating Metrics Harley-Davidson Honda Units Sold 361 103 Units Sold per Employee 35. 4 3. 6 Revenue per Employee (USD) 637,881 356,746 Operating Margin(%) 27. 5 9. 2 CapEx as % of Sales 3. 8% 4. 2% While the company’s competitors, notably Honda Motor Company (HMC) and Suzuki, do not have as dominant a market position, they often have greater financial resources. This is largely because companies like Honda have more diverse product lines (like cars), and are greater in size than Harley-Davidson, a far more specialized company. For example, motorcycle sales at the company’s largest competitor, Honda, hover around 12% of total revenue. Revenue by Region While around 80% of the Harley Davidson’s sales still occur in the United States, its international segments are growing quickly, and the company is pursuing opportunities for gaining market share abroad resulting in value added. This can prove important to the company, as market share has begun to stabilize in the US due to saturation of this market. 12 Month Harley-Davidson Stock Analysis The chart above shows that it has definitely been a tough 12 months for Harley-Davidson stock and it is undoubtedly being affected by the economy. VII. Predicting competitor behavior under each scenario Introduction of competitor behavior In 2007, Sales in the motorcycle industry failed to increase after 14 consecutive years of gains and were lower than in 2006. For Harley-Davidson, revenues declined 1. 3% and earnings declined 4. 3% 2007. In preparation for the affects of a slowing American economy, the firms largest market, Harley cut production and shipment of its motorcycles in the 3rd and 4th quarters of 2007. However, on the up side, the motorcycle industry sales in 2007 were over the 1 million mark for the 5th straight year. Battery and tire sales indicate that ridership and enthusiasm for the sport remain high. Quality The competition will continue to manufacturer new models and invest in quality improvement; however, they will focus on supplying products with high quality at a reasonable price. In addition, they will strive to further improve JIT inventory practices and statistical operation control. Quality drives productivity and increased productivity is a source of greater revenue. Marketing The competition will market their brand with the younger generation. It will cater to younger buyers with smaller budgets. The aim to attract the younger target market and compete on price. Furthermore, create bikes that are cheaper and faster that appeal to this market. In addition, the current success that Harley has had with the rental’s, and the rider’s edge program will most likely be emulated by the players in the industry. Product Innovation The competition will continue to invest in product innovation that will appeal to the younger generation in design and price points. They will continue to create new technology that will offer new possibilities in mobility. Conclusion: Harley-Davidson has developed a blue ocean strategy by fulfilling dreams through the experience of motorcycling. All bikes are customizable and have developed a huge fan club and a phenomenally powerful brand with emotional connection and loyalty. This loyalty will be crucial to the company’s success going forward, and Harley will depend upon duplicating this success  internationally to fuel growth. Despite the fact that due to economic issues, in the motorcycle industry sales have been down and cost up, we expect that Harley-Davidson will continue to invest in quality improvement, marketing strategy and product innovation in order to remain competitive in the industry and achieve economies of scale. Harley-Davidson will continue to manufacturer new models and invest in quality improvement however; they will do it with increasing cost pressures. The dollar has lost 26% of its value against the euro and 11% of its value against the yen since March 2003. Escalating cost for the metals, plastics and other commodities used to manufacture motorcycles and the fuel needed to transport foreign models to the U. S. market, has resulted in price pressures for the European and Japanese manufacturers in particular. Harley will need to look to further cut manufacturing costs, (lean manufacturing) rather than raise retail prices for consumers who, in the U. S. , are continuing to tighten their belts. Harley-Davidson will continue to invest in marketing. Through marketing efforts the company will look to increase its current loyalty program but also duplicate this success internationally to fuel growth. The company’s customers tend to be fiercely loyal to the brand, which has helped to drive consistent growth over the past 20 years while making the company the premier name in its industry. In addition, since the company’s core consumer group is aging, it will target women and the younger generation of motorcycle enthusiasts. In order to appeal to this group, the company will continue to use the HOG and riders edge program. Furthermore, the company will continue to revamp its affordable Sportster line and its higher-tech V-Rod family with liquid-cooled revolution engines and its subsidiary, Buell, in order to lure in the Generation Y market. However, it should be noted that in marketing to this new segment, it will lead to the red ocean scenario again and companies will compete at the same level within the industry. The company will also have an opportunity to increase marketing in the international markets. While around 80% of the Harley Davidson’s sales still occur in the United States, its international segments are growing quickly, and the company will have an opportunity to market to these segments in order to gain market share abroad resulting in value added. This can prove important to the company, as market share has begun to stabilize in the US due to saturation of this market. Harley-Davidson will also continue to invest in product innovation. In order to increase its customer base, the company will focus more on fuel efficiency transportation oriented models in the coming years. With many concerns with environmental health issues, the company will most likely manufacture a Hybrid or an economically friendly motorcycle to entice sales of future consumers who are concerned with environmental conservation and to appeal to current eco friendly consumers.