Strategic Audit of Corporation



Strategic Audit of Corporation

Section I -Current Situation

Current Performance

Revenue from Harley-Davidson motorcycles during the first quarter of 2010 of $808.8 million was down 20.0 percent compared to the year-ago period. In line with guidance, the Company shipped 53,674 Harley-Davidson motorcycles to dealers and distributors worldwide during the quarter, compared to shipments of 74,670 motorcycles in the first quarter of 2009.

Revenue from Parts and Accessories totaled $149.1 million during the quarter, down 12.1 percent, and revenue from General Merchandise, which includes MotorClothes® apparel, was $66.3 million, down 11.9 percent compared to the year-ago period.

Gross margin was 36.6 percent in the first quarter, compared to 37.1 percent in the year-ago period. First-quarter operating margin decreased to 12.2 percent from 18.1 percent in the first quarter of 2009, driven by higher restructuring costs and the impact of lower revenue in the first quarter of 2010 compared to the year-ago period.

Strategic Posture

Mission

We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments.

Your mission - if you choose to accept it - will be a simple one: "To Ride and Have Fun."

Objectives

Here's the bottom line: We like to think of Harley-Davidson - from the top corporate officer to the newest Harley owner and rider - as one big, happy family. The Harley Owners Group® helps us turn that philosophy into reality.

Does that sound like something you want to be a part of? Then Join H.O.G. today. You'll ride. You'll have fun. Mission accomplished.

Harley Davidsons's Mission and Policies clearly reflect its corporation international and global goals.

Section II- Corporate Governance

Board Of Directors

The board is consists of independent directors and are in accordance with the New York Stock Exchange regulations. They do not own any significance shares of stocks. Harley Davidson is a public limited company listed on stock exchange.There are different classes of stocks with different voting rights.

The directors are very experienced with well diversified portfolios. They all have international experience as well as serving directors of other big multi national organizations.

They all have different serving periods on the board starting from 1991 to some of them joining in 2008 as well.

Board Independence. A majority of the Board shall be comprised of independent directors. These directors shall meet the independence and other requirements of the New York Stock Exchange ("NYSE") and other applicable laws, regulations and rules.

Committee Independence. The Audit Committee, Human Resources Committee and the Nominating and Corporate Governance Committee shall be comprised entirely of independent directors. All committee members shall meet the independence and other requirements of the NYSE. In addition, members of the Audit Committee shall meet the independence and experience requirements set forth in the Sarbanes-Oxley Act of 2002, and other applicable laws, regulations and rules.

Committee Structure. The Board shall maintain three committees: a Nominating and Corporate Governance Committee, a Human Resources Committee and an Audit Committee. Each committee shall have a written ...