Harvey Norman Intangible Assets
TABLE OF CONTENTS
Abstract 2
Introduction 2
Business description and main activities 3
Harvey Norman Resources 5 Tangible Resources 5 Profit from continuing and discontinued operations 6 Profit from property 6 Sales at franchises 7 Sales at company-owned stores 8 Intangible Resources 8 Computer software and licence property 8 Goodwill 9
Harvey Norman Invisible Balance Sheet 10 Internal Capital 11 External Capital 13 Individual Competence 14
Recommendations 15
Conclusion 17
Appendix 19 Appendix 1 19
References 20
Abstract
Harvey Norman is one of the biggest consumer electronic retailer in Australia (D Richard, 2010), well-known for its recognisable brand name and local community involvement, Harvey Norman had achieved steady growth since its establishment on 1982 with 195 stores nationwide and 69 stores outside Australia. The success of Harvey Norman can’t solely be attributed to its services performance as a retailer nor solely to its physical assets and property, this report will examine the structure and resources of Harvey Norman both physical and intangible with a focus on the latter, of importance are intangible resources that give competitive advantage from its individual competence, internal, and external capital, an invisible balance sheet will also be derived to put these intangible resources in perspective. Following that a recommendation for Harvey Norman management will be presented on sustaining its competitive advantage and growth through the management of intangible.
Introduction
It has been far-known that a company’s financial annual report has limitation as it does not have a detailed explanation on the true value of company’s intangible assets and resources. Sveiby suggests that as external shareholders, investors are willing to know on the true worth of the company; not just based on its financial calculation, but more towards its know-how capital, employees’ intelligence and experiences, internal
Abstract 2
Introduction 2
Business description and main activities 3
Harvey Norman Resources 5 Tangible Resources 5 Profit from continuing and discontinued operations 6 Profit from property 6 Sales at franchises 7 Sales at company-owned stores 8 Intangible Resources 8 Computer software and licence property 8 Goodwill 9
Harvey Norman Invisible Balance Sheet 10 Internal Capital 11 External Capital 13 Individual Competence 14
Recommendations 15
Conclusion 17
Appendix 19 Appendix 1 19
References 20
Abstract
Harvey Norman is one of the biggest consumer electronic retailer in Australia (D Richard, 2010), well-known for its recognisable brand name and local community involvement, Harvey Norman had achieved steady growth since its establishment on 1982 with 195 stores nationwide and 69 stores outside Australia. The success of Harvey Norman can’t solely be attributed to its services performance as a retailer nor solely to its physical assets and property, this report will examine the structure and resources of Harvey Norman both physical and intangible with a focus on the latter, of importance are intangible resources that give competitive advantage from its individual competence, internal, and external capital, an invisible balance sheet will also be derived to put these intangible resources in perspective. Following that a recommendation for Harvey Norman management will be presented on sustaining its competitive advantage and growth through the management of intangible.
Introduction
It has been far-known that a company’s financial annual report has limitation as it does not have a detailed explanation on the true value of company’s intangible assets and resources. Sveiby suggests that as external shareholders, investors are willing to know on the true worth of the company; not just based on its financial calculation, but more towards its know-how capital, employees’ intelligence and experiences, internal
References: Atkinson, B, 2009, Australia Top 20 Retailers Ranking, Insider retailing, accessed 20 April 2010, <http://www.insideretailing.com.au/Latest/tabid/53/ID/5551/Australias-top-20-retailer-rankings.aspx> Canavan, G, 2008, Harvey Norman Holding Stocks (HVN), Sydney Morning Herald, accessed 21 April 2010, <http://www.moneymanager.com.au/articles/2008/06/09/1212863542134.html> Unknown, Why the Harvey Norman Franchise Operation is Flawed. 2009, Every Franchise News, Accessed 27 April 2010 <http://www.everyfranchise.com/articles/why-the-harvey-norman-franchise-operation-is-flawed-600.htm > [ 2 ]. Sveiby, K Eric, 1989, The invisible Balance Sheet, accessed 15 April 2010, [ 3 ] [ 4 ]. Atkinson, B, 2009, Australia Top 20 Retailers Ranking, Insider retailing, accessed 20 April 2010, [ 5 ] [ 6 ]. Canavan, G, 2008, Harvey Norman Holding Stocks (HVN), Sydney Morning Herald, accessed 21 April 2010, [ 7 ] [ 18 ]. Harvey Norman implements automated purchase ordering process, 2010, Transport and Logistics News, Accessed 28 April 2010, [ 19 ] [ 20 ]. Richard, D. 2008, “Why Gerry Harvey is wrong and JB-Hi Fi right” , Smart Office, Accessed 21 April 2010, http://www.smartoffice.com.au/Business/Retail/B6X2M6S2?page=2 [ 21 ] [ 22 ]. Wang, F. 2009, Sink or Swim: A critical study of the success of the JB Hi-Fi business model, Ozbankers.com, accessed 22 April 2010, [ 23 ]