Harvey Norman Essay

There are almost 14000 retail business in Australia which exhibit great diversity in their size of business, region, format of retailing, nature of goods the sell. JB Hi-Fi and Harvey Norman both of the companies belong to retail industry that mainly focus on selling of wide varieties of electronic goods. Their price range of different goods they sale is vary though the range of price difference is insignificant. Hence, it would be worth full to mention a little comparison of difference in price range of goods they offer of these Australian based retailers and those of US based retailers. For instance, the same LG refrigerator costing $2500 at Harvey Norman – is available to American consumers from Amazon for just under US$1500. (Keane 2011, p. 1). Though this example is more related to marketing analysis of these companies but still I just wanted to point out the difference in their profit making ability which is followed by this huge difference in price range and moreover this big difference in their offered price would have effect on their cash flow statement

2. Starbucks enjoyed strong financial performance in 2011. The company did not explicitly attribute this, but with an 8% rise in same store sales it seems that either the consumer market bounced back, or Starbucks made changes that attracted more consumers. The company feels that it offered better products and a better experience at its stores. The company also credited operating efficiencies and tight control of spending for improved profits. In addition, the company continued its global expansion, which improved the top line, and used the economies of scale it generated as part of its cost control program.

This report provides a comprehensive analysis of JB Hi Fi (JB)’s strategic management and operations. The current global uncertainty over recent months have provided a challenge for the retail sector and this report will address strategies JB implemented which allows them to continue growing. Section 2, strategic analysis focuses on the external and internal environments, using the PESTEL and Porters 5 forces

JB Hi-Fi Limited (JBH) is a specialty discount retailer of branded home entertainment products. The group's products fall into consumer electronics, car sound systems, music, Digital Versatile Disc’s (DVD’s) and white-goods. JB Hi-Fi Limited achieved revenue growth of 17%, EBIT growth of 23% and NPAT growth of 26% for the year ended in 30 June 2010

Total profit show a positive increase from 18% in 2013 to 31% in 2015, far reaching the brothers’ preference of $1.1 M in 2015, Appendix 3 showed $1.4 M net profit

Alfred Moore, a confederate soldier, was born in 1837. Accompanied by twelve other siblings, he grew up on a farm in Fairfax County, Virginia. His life before he enlisted as a first sergeant in the Fairfax County seemed very simple. Mary Moore, his mother, inherited property worth $8,000 following her husband’s death. Alfred decided to live on this property with a few of his siblings. Together, they cultivated the farm. Throughout the years of work, Alfred remained unmarried. In April 1861, he was enlisted in the Fairfax Calvary. A month later Alfred was captured by Federal troops along with 34 other members of the company. After being directed to take an oath of allegiance, he was sent home until later notice. The company that Alfred was a part of was reorganized and he was still listed as the first sergeant. Eventually, he was granted a promotion to become the third lieutenant of the company. Alfred continued to progress in authority levels until he was in command of

JB Hi-Fi is an Australian retailer of consumer electronics it began in 1974, where Mr. John Barbuto (JB) established JB Hi-Fi in East Keilor, Victoria. His main focus was to deliver a special range of Hi-Fi and recorded music at the lowest prices in Australia and New Zealand. Mr. John Barbuto sold the business in 1983 and by 1999 another nine stores were opened. In July 2000 private equity bankers and senior management purchased JB Hi-Fi. In October 2003, JB Hi-Fi was floated on the Australian Stock Exchange. This company still maintaining Barbet’s original philosophy, JB is one of Australasia 's fastest growing and largest retailers of home entertainment.

The most noticeable growth in this section is seen in sales from 2002 to 2003. These sales have increased from 3.7% in 2001-02 to 23.5% in 2002-03 after the expansion of the store. This truly helps the company to a positive way when seeing such drastic changes. Net earnings have almost doubled and gross profit was on the rise as well, which is also a positive trend for the company that will not go unnoticed. This indicates a positive correlation and increases in profitability.

Harvey Norman holdings Ltd has its strength on the scale of retails, such as electrical products, furniture and so on. It has a very popular slogan saying that ‘Go Harvey, Go Harvey, Go Harvey Norman’, which makes a brand effect for the company. Besides, with the comparative advantage of its size, the HVN also has superiority of buying in bulk. It has relative lower cost for retail so that the price will be lower. Moreover, Harvey Norman follows the solid franchise model, which shows that approximately 35% of its revenue is generated from its franchise.

Some of the significant changes I found on the income sheet were revenue which decreased by 8 million dollars in 2015 compared to 2014. SG&A expenses increased by .9% for the year. How-ever gross profit decreased by .3% in 2015. Also net income for the year decreased by -2.5% per-cent.

One of the most remarkable stories is the one of John Norman. He was a deputy chief of the New York City fire department. He was asleep whenever the first tower of the World Trade Center was hit. He had turned off the ringer on his phone because he was on vacation from work. His plan that day was to sleep in. He was completely unaware of what was going on outside. Then his answering machine got an "all call" message from the department. Still he didn't know what fully was going on so he turned on the television. He said, “As I’m just about to turn off the TV and head for the door, the south tower collapses. I thought it was a bomb." It took him and hour and a half just to get to the city and where he needed to be. He was put in shock whenever

The current degree of leverage at Harvey Norman marks a return to the leverage of 2008. The 2011 Annual Report reveals a number of different reasons for this increase in leverage. The first is that total liabilities borrowings increased by $150 million. This increase comes primarily from an increase in long-term interest-bearing loans and borrowings, which increased $200 million in the last fiscal year. Other changes in the net borrowings derived from bank overdraft, commercial bills, derivatives payable, lease liabilities, and non-trade amounts owing to directors, related parties and unrelated persons (2011 Annual Report, p.114).

During this time, sales increased from: $7.11 billion in 2010 to $7.99 billion in 2012. Earnings improved from $2.84 to $3.57. While the total amount of dividends rose from $1.00 to $1.72. These figures are showing how the company has been continually increasing sales, earnings and dividends over the last three years. In the future, the management predicts that their current strategy will increase returns. As, executives believe that their focus on building the brand and accounting for costs will lead to net earnings of $5.20 to $7.19 annually by

In terms of the history development of Harvey Norman, appendix 1 illustrates the important evolvements. It has been one of the dominant leaders of Australian retail industry since 1970s. Based on the business performance of last few decades, Harvey Norman has shown a rapid growth compare to its competitors.

This decision increased SNC’s EBIT by approximately 200,000. Although SNC’s sales and EBIT figures increased, their net working capital and profit margins will remain at current figures.