Harley-Davidson Organizational Structure

Harley-Davidson utilizes a functional organizational structure that separates aspects of its sales and manufacturing business into distinct groups. These groups include Financial Services, Motorcycle Management, Marketing, Digital, and Electric Vehicles.
Harley-Davidson is also structured around four key geographic divisions: Europe, Middle East, and Africa (EMEA), North America, Asia Pacific, and Latin America.
The company is also characterized by a centralized, global hierarchy. Control and decision-making power are concentrated at company headquarters in Milwaukee, with each functional and divisional head reporting directly to current CEO Jochen Zeitz.

Department	Type of Structure	Details	Advantages	Drawbacks
Corporate Level	Functional	– Harley-Davidson’s corporate structure consists of various departments such as marketing, finance, supply chain, and manufacturing.	– Specialization in key functional areas. – Efficient management of corporate-level operations.	– Potential silos between functional departments, which can hinder cross-functional collaboration.
Business Units	Divisional	– The company has distinct business units, including Harley-Davidson Motorcycles, Parts and Accessories, and General Merchandise.	– Adaptation to specific product lines and markets. – Allows for focused strategies in each business unit.	– Coordination challenges between different business units, particularly when introducing new products or innovations.
Production	Functional	– Within manufacturing, Harley-Davidson uses a functional structure with specialized units for assembly, quality control, and research and development.	– Expertise and efficiency in motorcycle production.	– Potential difficulties in integrating new technologies or processes across production units.
Dealer Network	Network	– Harley-Davidson relies on a network of independent dealerships worldwide to distribute and sell its motorcycles and related products.	– Wide market reach through independent dealers. – Localized sales and customer support.	– Challenges in maintaining consistent branding and customer experience across diverse dealerships.

Table of Contents

Introduction

Harley-Davidson is a motorcycle manufacturer that was founded in 1903 by William S. Harley, Arthur Davidson, Walter Davidson, and William A. Davidson.

The company, which is headquartered in Milwaukee, Wisconsin, was one of only two motorcycle manufacturers to survive the Great Depression in the United States. Today, the Harley-Davidson brand boasts a loyal and devoted following with a broad range of merchandise supporting its core motorcycle range.

Harley-Davidson utilizes a functional organizational structure that separates aspects of its sales and manufacturing business into distinct groups. This structure and some additional components are explained in the following sections.

Functional groups

Functional groups are the predominant structure in the Harley-Davidson company. Employees are organized according to their particular skills and knowledge with each group having its own vertical management structure.

Harley-Davidson’s functional departments include:

Financial Services.
Legal.
Commercial.
Human Resources.
Digital.
Electric Vehicles.
Product Development and Operations.
Apparel and Licensing.
Motorcycle Management.
Stakeholder Management.
Marketing.
Chief Executive Officer, and
Communications and Corporate Relations.

As a company that sells just a few different types of products, the functional organizational structure is seen as an advantage. Employees who are categorized according to their expertise can contribute to the depth of knowledge within Harley-Davidson that allows it to be an industry leader in motorcycles.

Geographic divisions

Harley-Davidson also focuses its efforts across four geographic divisions:

Europe, Middle East, and Africa (EMEA).
North America.
Asia Pacific, and
Latin America.

Each division is headed by a Vice President or Director.

Centralization and global hierarchy

Harley-Davidson’s structure is also centralized since control over global operations is maintained by company headquarters in the United States. Centralization also means that each functional group and divisional head reports directly to the current Chairman, President, and CEO Jochen Zeitz. There is also a 10-member Board of Directors with experience at previous companies such as Boeing, Ford, MTV, and the Bill & Melinda Gates Foundation.

Key Highlights:

Functional Organizational Structure: Harley-Davidson employs a functional organizational structure that organizes its sales and manufacturing business into distinct functional groups based on expertise and skills.
Functional Departments: The company’s functional departments include Financial Services, Legal, Commercial, Human Resources, Digital, Electric Vehicles, Product Development and Operations, Apparel and Licensing, Motorcycle Management, Stakeholder Management, Marketing, CEO, and Communications and Corporate Relations.
Advantage of Focus: Due to its focused product range (motorcycles), the functional organizational structure allows Harley-Davidson to leverage the expertise of its employees and be an industry leader in its field.
Geographic Divisions: Harley-Davidson operates through four geographic divisions: Europe, Middle East, and Africa (EMEA), North America, Asia Pacific, and Latin America. Each division is led by a Vice President or Director.
Centralization: The company’s structure is centralized, with control over global operations maintained at the company’s headquarters in the United States. This centralization ensures a clear chain of command and efficient decision-making.
Global Hierarchy: The CEO, Jochen Zeitz, holds a central role in the global hierarchy, with each functional group and divisional head reporting directly to him. The company also has a 10-member Board of Directors with diverse experience.
Sales Distribution: Despite global operations, the company’s centralization seems less cumbersome due to a significant portion of sales occurring in North America, where it sold nearly 70% of its motorcycles in 2021.

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