Strategy Formulation for International Expansion: Harvey Norman

This report analyzes Harvey Norman's international expansion strategy, focusing on its growth in markets like Malaysia and Ireland amidst challenges in the Australian market. The company has experienced revenue growth through its offshore business, particularly in regions like New Zealand, Croatia, Singapore, and Malaysia. The report highlights Harvey Norman's support for the Irish retail sector during economic difficulties, noting a reduction in losses in Ireland. Increased productivity in franchising operations and gross asset revaluation have contributed to the company's profit increase. The analysis includes consideration of PESTLE factors influencing Harvey Norman's international operations, as it seeks to leverage its brand and market position for global growth and strategic partnerships.

INTERNATIONAL AND
GLOBAL BUSINESS
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Harvey Norman attains offshore growth through
international expansion
 The company accelerating its expansion in Malaysian
and Irish retail sector for seeking new development as
Harvey Norman’s Australian company operated stores
have been facing disruptions under the complexities of
elevated competitiveness along with a slow housing
market (Beesley 2017).
 Reports reveal gross net revenues after taxation of
around $450 million up to over 25% as the homeware
and small appliances benefits from housing profitability
as well as its offshore business gain traction (Pash
2017) .

Harvey Norman's profits in Global Market
 The company’s incomes have
been over 5.5% to an amount of
$6.5 billion whereby it operated
sales returns had been 2.2%
that is projected to be higher
than $2 billion (Pash 2017).
 Harvey’s company operated
retail profit has been set up on
aggressive performance in its
global development. This had
facilitated the firm to spread its
trade operations in regions New
Zealand, Croatia, Singapore as
well as Malaysia.

Harvey Norman supports Irish Retail
sector in its struggling operations
•Harvey Norman as one of the key retail
operators in Irish sector has assured the country
to offer utmost support to Irish operation through
its recession with Brexit emergence.
•The company claimed that each of its company
operated stores have been losing its revenues
with sales rate dropping by almost 40% (Beesley
2017).

HARVEY NORMAN IRELAND
REDUCES LOSSES
 However recent times, Ireland has surpassed its
dropping revenue rate of €20 million in 2015. The
heightened sales of Harvey Norman in the Republic
from € 8 million to € 130.18 million in 2015 have been
reported in order to mark a rise of 6.1 pc in the
declining market (Beesley 2017).

Norman’s record profit increase
 Recent reports have indicated that $37
million rise in the productivity of the
franchising operations sector has led to
generate over A$ 305.50 million.
 A gross asset revaluation percentage
increase of A$ 110.04 million has
delivered a considerable of $60 million
over the cumulative profit of the
company.

References
 Beesley, A. 2017. Irish stores ‘key’ to Harvey Norman’s
record profit increase. [online] The Irish Times. Available
at: https://www.irishtimes.com/business/retail-and-
services/irish-stores-key-to-harvey-norman-s-record-profit-
increase-1.3204619 [Accessed 20 Sep. 2018].
 Pash, C. 2017. Harvey Norman's profits have soared 29%
higher to a new record. [online] Business Insider Australia.
Available at: https://www.businessinsider.com.au/harvey-
normans-profits-have-soared-29-higher-to-a-new-record-
2017-8 [Accessed 20 Sep. 2018].