Swot Analysis on Harvey Norman Store (Research Paper Sample)

HARVEY NORMAN STORE
Students’ Name
22/12/2011
INTRODUCTION
Harvey Norman store is an international franchise that deals with computers, electronics, furniture and bedding. Harvey Norman Store started in 1961 as a single store in Australia. In 1961 it just dealt with electronics and appliances. The brand name originated from Harvey Norman holdings. Over the years the store has gone through revolutions, which have led to it expanding and having stores all over the world.
REVIEW
Strength
A Harvey Norman holding has a number of strengths which make it a unique store. To begin with, each department works as an independent wing of the store. If it is the electronic section the workers in that department cannot come to work in the other departments. Each wing has its own sales people this makes it easier to gain a bigger market. Each wing contributes its profits to the main holding which gives it more room to expand. That is why it is easier for each section to expand on its own. For instance if the furniture holdings discovers there is potential in an area, it can open a branch there without the other wings.
Weaknesses
The different wings can easily become great competitors, hence bringing a rift within the store. Even when there is shortage of staff, each wing has to find its way to sort the problem which may also lead to the staff not mingling. Lack of unity may make the holding to break down. This has affected the cash flow and efficiency ratios.
Opportunities
Having different leaders makes it easier for the holding to grow. The other opportunity is how it can easily have branches all over without affecting other wings. The company being a family house hold name gives it a better opportunity for it to develop. The use of flexi-rent has also helped Harvey Norman Store to advertise and get popularity in most countries. The sponsorship opportunities have also helped in a great way to make the store have good corporate relations with the communities around. This has opened ways for it to advertise itself in different angles and groups.
Threats
The negative demonstrations from the environmental activist may cost the holding. Also the leader Gerry should avoid negative publicity. According to “Today tonight” an Australian television show Gerry being fined may give the people a negative aspect of the company. He being involved with the ratings gives the impression that the store’s management has something that they are hiding. This can also be considered that maybe there products are of the poor quality. The wide market and competition is also working against the franchise.
Recommendations
Harvey Norman store should...