Harvey Norman: Business and Strategic Management

Running Head: HARVEY NORMAN 0
BUSINESS AND STRATEGIC MANAGEMENT
Student Details
11/23/2018

Harvey Norman 1
Executive Summary
This report presents the detailed discussion about the strategic management and its
implementation in an organization. Harvey Norman is one of the biggest retail companies in
Australia. This report contains the history and the structure of Harvey Norman. Harvey
Norman was established by Gerald Harvey and Ian Norman in 1982. Since then it has come a
long way and has become one of the biggest organizations in retailing. Company provides its
franchisee to other independent organization and has created its business out of Australia in
different countries including New Zealand, South Africa, Ireland, Singapore, Slovenia, and
Malaysia. Company adopted Flagship strategy with opening of Millenia walk store in
Singapore in 2015. This strategy has made record breaking financial success for Harvey
Norman by the end of 2017 year. But due to the technology advancement, changing customer
demands and the tough competition by competitors demands some improvement in the
existing strategy of the Harvey Norman and inclusion of some new and better strategy to
remain and sustain in the business. This report talks about the two important strategies that
Harvey Norman can include to grow its business; these include Greenfield Venture and the
Strategic Alliance. Some key issues and the recommendations regarding these strategies are
also discussed in the report.

Harvey Norman 2
Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Background Information of Harvey Norman.........................................................................4
Strategic Management............................................................................................................4
Strategy of Harvey Norman...............................................................................................5
Factors Affecting Harvey Norman Performance...................................................................6
Strategic Factors of Harvey Norman..................................................................................7
Alternative Strategy Recommendation for Harvey Norman......................................................8
Greenfield Strategy................................................................................................................8
Strategic Alliances.................................................................................................................9
Implementation of Greenfield Strategy..................................................................................9
Implementation of Strategic Alliance..................................................................................10
Key Issues in Greenfield Strategy........................................................................................10
Recommendations for Issues in Greenfield Setup...............................................................11
Key Issues in Strategic Alliance..........................................................................................12
Recommendations for Issues in Strategic Alliance..............................................................12
Conclusion................................................................................................................................13
Reference..................................................................................................................................15

Harvey Norman 3
Introduction
Strategic management of an organization or a business defines the business strategy
with goals of the organization, developing plan to achieve these goals , alignment of business
activities in order to support the goals, and then allocating organization resources to achieve
the goals (IMD, 2018). This report presents the detailed discussion of the business strategies
of one of the biggest retail organization in Australia naming Harvey Norman. Harvey
Norman was founded by Gerald Harvey and Ian Norman in 1982. Product categories that are
sold by Harvey Norman includes furniture, computer and communication, electrical
appliances, bathroom and tiles bedding, flooring and many more. Harvey Norman gives
franchisee to other independent organizations in different countries like New Zealand,
Singapore, Malaysia, Ireland, Slovenia, and South Africa (Bloomberg, 2018). Currently
Harvey Norman is working on the flagship strategy. This strategy was adopted by the
company in 2015 and after that company has achieved huge financial success by the end of
the year 2017. Strategic management involves planning, monitoring, analysis and the
assessment of steps that are required for an organization to achieve its goals. Every company
has their own strategy for the business and to make maximum profit from the business
(Twarowska & Kakol, 2013). As due to the advancement in the technology and the increasing
and changing demands of the customers have created tough competition for the Harvey
Norman, hence Harvey Norman has to develop and make improvements in the strategy they
are working to remain on top among its competitors. Factors like political, economic also
affects the business of an organization. In this report, it is discussed about the improvements
in the existing strategy like renovation of the existing flagship stores of Harvey Norman and
by omni channel strategy (Barwick, 2014), Harvey Norman is interacting with users online
those who prefer shopping online and solving their queries. Other strategies like Greenfield