Harley Davidson

In 1980, the American Machine and Foundry Corporation (AMF) put its troubled Harley Davidson motorcycle division up for sale. Harley was the target of relentless Japanese competition, and, as a i1fr, its United States market share dropped predpitously. During the 10-year period from 1965 to 1974, Japanese imports accounted for 80% to 90% of all motorcycle units sold in the United States. In 1980, Harley lost money for the first time in 50 years. Facing formidable Japanese competition, Harley had no alternative. It had to reinvent itself or disappear. : Harley Davidson managed to come back as a globally: competitive, highly successful growth company. A group of 13 former executives in charge of the Harley Davidson division at AMF acquired the company in I 9S I in a leveraged buyout. Following a “struggle for survival” that lasted five years, Harley’s new owners turned the company around. Over the next 18 years, arid throughout the tenure of two executives—Richard Teerlink (1987—1999) and Jeffrey Bleustein (1997— 2005)—Harley transformed itself.

Richard Teerlink modernized Harley Davidson plants, institutionalizing three workplace practices borrowed from the Japanese: just in time (JIT) inventory control, employee involvement, and total quality control. He also regrouped Harley assembly workers into work teams; reorganized Harley Davidson structurally, revamped the company’s compensation system, and radically altered labor-management relations at Harley. Jeffery Bleustein completed Harley’s ‘Jilt modernization program, restructured Harley’s supplier relations, and opened the company’s first assembly plant abroad. Paying close attention to marketing, advertising, and branding, Bleustein expanded international sales, diversified Harley’s product line to attract new customers, an4 revitalized Harley’s dealerships worldwide.

When Bleusrein retired in 2005, james Ziemer was elected CEO. Zierner inherited a top-performing company. For nearly two decades, Harley Davidson...