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Economic Conflicts

Economic factors around the globe differ from one place to another since countries vary in preferences, currency, and market demand itself. These are to name only few. However, it would prove to be the most important factors to be considered in the analysis of the company of Harley-Davidson. Factor of Preference Preference is the factor concerned with what the consumers want. (“Definition of Preference”) This may be a characteristic, or even a whole type of commodity that a consumer wants in a certain period of time.

This factor proves to be one of the most dynamic factors that may affect the market demand of a commodity. Taking the company as an example, one preference...

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... of the male population in purchasing a big bike would be the speed of the bike. The faster the bike goes, with respect for the consumption of gasoline, the better. Factor of Currency Currency, however, is the defining factor for international profit. Currency can be defined as the monetary unit of a country that people use for exchange of goods and services, with the unit used as a form or mode of payment.

(“Currency”) The difference in currency can be converted to a common rate, defined as exchange rate, in which the company computes not only profit; but the financial ratios governing the field of their corporate income. Market demand as a factor Market demand is the desire of an individual to possess a good through legal means like sale. (Moffat) Demand for a product is commonly affected by price, trends, and quality of a product. Demand for a product is one of the key determinants of the price at which the good would be for sale.

The factor of demand occurs and affects the market through the volatility of it, or through the rate at which the demand of a product changes in a given period of time. If a product changes to be at the same demand level, in accordance to the changes in other markets, then the product is said to be volatile. The change in demand in neighboring countries, for example, would also affect the market demand of a product, say a Harley-Davidson Motorcycle, and expect the difference in reactions of the other volatile markets. It is important to know the level of volatility of a market to help determine the rate at which the market demands changes.

Through research and theory application, a company would be able to understand the market and place their products strategically. These factors are also the factors that make the company of Harley-Davidson a truly fascinating company to study. First, the preference of a consumer towards the Harley-Davidson products are remarkably high that the company announces their growth yearly. (“Harley-Davidson Announces 20th Record Year”) This simply means that the units of the motorcycles that are being purchased continue to rise; and with this rise, the income of the company also rises.

The second factor is the currency or exchange rate. This may be the trickiest factor to explain since it involves international sales. The company’s sales continue to thrive in the European Region and Asia. (Dwyer) Growing demand for the styles of the Harley motorcycle is quickly spreading in each region like wildfire. This demand is then converted to sales that would go through the exchange rate first before being turned to a component of the company’s income. The last factor gives proves to be the market demand because it is one of the company’s product strengths.

The constantly rising demand for motorcycles in the world, especially Harley-Davidsons, is one key factor in the growth in sales of the company. All the company has to do is provide the necessary supply for the demand that is presented. The balance sheets and income statements of the company are analyzed since these are the determinants of the company’s growth; not only does it show the profit, but more importantly, the financial ratios that investors have been keeping eye on.

The essentials of the company, however, lie on its growth rates in terms of profit, income and net sales. These factors are the very important parts of a company’s strengths. The strength, at which, draws the attraction of not only investors, but also the potential buyers in markets around the globe. The mystery of the motorcycle company’s strength would now be uncovered and the strengths will not only be identified, but also analyzed.

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