Harvey Norman Intangible Assets

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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
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Within its franchising system, the company provides retailing strategy and marketing techniques in turn for receiving the franchisees fees that are based on sales. Harvey Norman is said to be ‘part retailer, part property-trust’ as the company property holdings account for nearly 50 percent of its total assets (Money manager, 2008). These assets also produce main source of income for the company including regular rental income from the franchisees, and also acting as an investment income where it can successfully develop properties from vacant land to retail complexes. The major benefits of this integrated model enable Harvey Norman to lower the cost of debt financing by securitizing a portion of income-producing property portfolio. This would free up capital and helps to boost returns.

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.

Harvey Norman Resources
Tangible Resources
According to the company’s profile, Harvey Norman Holdings Ltd is one of leading retail chains in Australia, which has franchisors, company-owned stores and properties across the world (Australia, New Zealand,

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