Harvey Norman: Analysis of Socio-Economic and Political-Legal Environment

Global business management

HARVEY NORMAN
Contents
Introduction.................................................................................................................................................2
Environment................................................................................................................................................2
Socio-Economic Environment..................................................................................................................2
Political - Legal Environment...................................................................................................................5
Business Environment.............................................................................................................................6
Analysis........................................................................................................................................................7
Recommendation........................................................................................................................................8
References...................................................................................................................................................9

HARVEY NORMAN
Introduction
Harvey Norman is the largest Australian based company which deals in the products related to
furniture, computers, bedding and Consumer electrical products. Headquarter of the company is
in New South Wales, Australia. There are approximately 10,000 employees who are managing
the overall activities of the company. The CEO of the company is Katie Page and the company
mainly operates as the franchise in the market. The competitors of the company are David Jones
and Coles and the aim of the company is to boost the growth in the competitive market.
Environment
Socio-Economic Environment
Demographic variable- Demography of the country covers certain different criteria such as
population density, ethnicity, economic status, health, education level, and religious affiliations.
The population of the country has been growing at the pace of 1.52 percent. Philippines is the
12th most populated nation and according to UN`s latest estimates, the current population is
106.51 million (Trading economies, 2018). The country`s population has a diversified range of
ethnic groups. According to the population density, the business will grow due to increasing
demand of the customers. Here eighty-one percent of people are catholic Christians, 11 percent
are from Christian denomination, and approximately 6 percent of them are Muslim
(Worldpopulationreview, 2018). On the other hand, population density of Thailand is much more
than Philippines, it is around 135 person in a per square kilometer and it has increased from the
previous years. Majority of the Thailand’s population is locates at Bangkok with the diversified
ethnic groups (Lucintel, 2016).

HARVEY NORMAN
GDP- It is important for Philippines to consider that their policies has to be formed after seeing
that the economy of the country is leaded by service sector that will ultimately contribute to 56.9
percent of GDP in 2015. As Philippines is prone to destructive natural disasters which is
ultimately reflected in the GDP of the country. Moreover, another challenge to upcoming
companies to establish in Philippines is low investment in research and development (R&D)
(Statista, 2018a). Whereas, Thailand’s economy is influenced due to low rate of interest and
inflation that ultimately increases the purchasing power of the customers. Due to increasing GDP
rate, Thailand can be a more appropriate option to invest as far as GDP is concerned. From the
below GDP growing graph of Philippines, the GDP is increasing slowly and gradually.
Although, it is important to consider the pace of growth is slow and the reason is clear as the
country is highly influenced by destructive disasters (Trading economies, 2018).
Tabular and graphical representation of GDP of Philippines and Thailand
GDP of Philippines
Years GDP (in US Dollars)
2012 250.09
2013 271.84
2014 284.59
2015 292.77
2016 304.89
2017 313.68
2018 331.68
2019 354.31
2020 385.44