In the 1980s, a Lapse in Production Quality and an Increase

question 107

Multiple Choice

In the 1980s, a lapse in production quality and an increase in Japanese imports drove the Harley-Davidson motorcycle company to the brink of bankruptcy. The company's share of the U.S. super heavy-weight market segment - motorcycles with engine capacity of 850 cubic centimeters or more - shrunk from over 40 percent in the mid 1970s to 23 percent in 1983. But by 1989, Harley-Davidson controlled some 65 percent of this market segment. From a marketing perspective, what was the most likely first step in Harley-Davidson's resurgence?

• A)developing a new mission statement
• B)repositioning its products in the minds of super heavy-weight motorcycle buyers
• C)performing a SWOT analysis to assess the firm's internal and external environments.
• D)selling new models of super heavy-weight motorcycles in both the U.S. (current) and foreign (new) markets
• E)improving the quality of its products and communicating this to motorcycle buyers

---

Definitions:

Salary Allowance

A predetermined amount paid to employees, which may be part of their salary package, often for specific purposes or expenses.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, indicating the company's profitability.

Capital Balances

The amount of equity owned by investors or owners in a company or fund.

Net Loss

The amount by which total expenses exceed total revenues in a given period, indicating a financial loss for the business.