Harvey Norman is an Australian company that deals in furniture, computers, bedding and other goods. It is one of the main companies under the ASX-listed Harvey Norman Holdings Limited and has around 280 stores spread in Australia, New Zealand, South-East Asia and Europe mainly ("Home - Australian Securities Exchange – ASX, 2017).
The aim of the study will be to analyze the issues that are commonly present in managing the business. The objective of the essay is to get a better hold of the internal and external factors, which helps in decision-making for the company.
The political factors include the corporation tax rates, which helps in formulating the business strategies of the company. The economic factor of the company is that it provides sales all around the year so that the consumers can benefit from the amount that they are spending (Cleaver, Jo & Muller, 2015). From the sociological point of view, it can be found that the company employs large number of people and thus the employment of the country increases to some extent (Dobbs, 2014). The technological factor is that it influences the sales of software products for the company that deals with computer programming (Garcia, 2016). From the legal perspective, it can be said that the company suffered thefts of phones, memory sticks and cameras. The thief did not have a proper prison time, as he defended by saying that the employers misbehaved with him when he was an employee. This prompted him to take an action against the company (Bae et al., 2014). The company does not care about the environment, as it cut down many trees so that they could build a parking lot in the premises. Many animals that were native to that place were not relocated and it caused a major stir amongst the environmental activists (Hill & Hult, 2016).
The Porter’s model helps in understanding the external factors of the industry. The company is a retail industry and it faces stiff competition from David Jones Limited, Woolworths and Myer Holdings Limited. These companies are also relatively large and have a huge customer base for its products (Hill, 2015). The suppliers in the recent economy play a huge role as they negotiate the deal of the goods with the retailers so that competition can be reduced (McArthur, Weaven & Dant, 2016). The threat of new entrants in the market is low as they cannot stand a chance to compete against the big players in the retail industry in Australia. The substitution threat is also low because of the technological advancements that are present in the modern world (McNeil, Frey & Embrechts, 2015). The power of the buyers is high, as there is a number of industries that sells the products and it is easy for the buyers to shift to different company (Niu, Liu & Wang, 2016).
The strengths of the company is that it is one of the largest retailer in Australia with respect to entertainment and electrical goods. It has its presence in many countries like Malaysia, New Zealand, Singapore and many other countries. It offers promotional goods and caters to the needs of the different segment of customers. It employs more than 10,000 employees for its 250 stores globally (Parsons & Wilkinson, 2015). The weaknesses of the company are that it has faced allegations against the business practices and faces stiff competition from global industries (Peng, 2014). The opportunities of the company are that it gives good quality products at low prices and has recently shifted to lifestyle products (Roth, 2017). The threats of the company are that it cannot give low quality products, which may affect the brand name of the company (Trappey & Trappey, 2015).
The strategies of the company are to build up a competitive advantage by keeping the prices of the products at a low rate. This helps them in attracting a major customer base. The structure of the organization is that it follows both ways of communication. The management and the employees are able to interact with each other and bring about changes within the company (Zutshi et al., 2016). The system of the company is that the employees have to keep a stock of the products on a regular basis so that the number of sales can be tracked. The shared values of the company are to work hard so that it can make maximum profit (Abhayawansa & Guthrie, 2014). The leadership style that is followed in the company is transformational where the employees are motivated by giving them proper training so that they can understand the job properly. The staffs of the company are hired according to the skills they have so that the best person gets the best job. The skills of the workers are enhanced by giving them training on a regular basis (Garcia, 2016).
The recommendation for the company is that it has to capitalize on the resources that they have so that it can improve the parts that are not well developed. This will help the company to make proper decisions regarding the structure that they follow in the organization. The decisions that the company will take needs to be conveyed to the employees so that feedback can be given properly. If the management receives negative feedbacks then they need to discuss and change their strategies. This will help in giving the firm the competitive advantages that they need to survive in the market.
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McArthur, E., Weaven, S., & Dant, R. (2016). The Evolution of Retailing: A Meta Review of the Literature. Journal of Macromarketing, 36(3), 272-286.
McNeil, A. J., Frey, R., & Embrechts, P. (2015). Quantitative risk management: Concepts, techniques and tools. Princeton university press.
Niu, B., Liu, L., & Wang, J. (2016). Sell through a local retailer or operate your own store? Channel structure and risk analysis. Journal of the Operational Research Society, 67(2), 325-338.
Parsons, A., & Wilkinson, M. H. (2015). Retailing in New Zealand: Where Are We and Where To Next?. In European Retail Research (pp. 141-160). Springer Fachmedien Wiesbaden.
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Roth, M. (2017). Top Stocks 2017: A Sharebuyer's Guide to Leading Australian Companies. John Wiley & Sons.
Trappey, C. V., & Trappey, A. J. (2015). Collective intelligence applied to legal e-discovery: A ten-year case study of Australia franchise and trademark litigation. Advanced Engineering Informatics, 29(4), 787-798.
Zutshi, A., Zutshi, A., Creed, A., Creed, A., Holmes, M., Holmes, M., & Brain, J. (2016). Reflections of environmental management implementation in furniture. International Journal of Retail & Distribution Management, 44(8), 840-859.