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Harvey Norman

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Submitted By cindyng2609
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Harvey Norman

1.0 Introduction
Harvey Norman, a main brand name under Harvey Norman Holding Limited, is an Australian Retailer Giant that comprises of Electrical goods, Carpet and Flooring, Computer software and hardware products, Communications, Furniture and Home Improvements etc... It was established by Gerry Harvey and Ian Norman in October 1982. Harvey Norman stores operate on a global scale, with 166 stores based all over Australia and 68 in other countries i.e. Croatia, Ireland, New Zealand, Slovenia, Singapore and Malaysia.
Majority of the company’s income emerge from house ware, appliance, and furniture retailing in the Australian industry. The company employs a diverse and integrated business model. Basically, Harvey Norman operates an array of Harvey Norman franchised functions (Australia), company-owned stores (primarily overseas), and store under Joyce Mayne and Domayne brands (Australia) on top of supplementary business interests within the retail sector.
The principal activities of Harvey Norman are that of an integrated franchise, property, and retail entity including retail, property investment, media placement, lessor of premises to franchisees as well as other third party, and provision of consumer finance.

2.0 PESTEL Analysis
A PESTEL analysis assists an organization to evaluate external environment.
A PESTEL analysis for Harvey Norman as below:

2.1 Political
Firstly, Harvey Norman has benefits from an economic stimulus program by Australia federal government to encourage customer purchasing during a strong economic recession during 2009 (Leigh, 2012). However, the government has increased the tax rate from 23.13% in 2013 to 29.50% in 2014, this will have negative impact on the company’s net profit after tax ("Harvey Holdings Limited: Annual Report," 2014). The Omni channel strategy will be continue executed

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