Harvey Norman Evaluation

1.0 Introduction This report will investigate the Australian company, Harvey Norman expending to South Africa, Cape Town. This report is meditated to Harvey Norman Senior Management Team in Australia. The main purpose of this report is to investigate how the South African business environment is before the company operates. Harvey Norman Holdings ltd, a franchise retail of electrical and furniture that operate not only Australia but also Europe and Asia .Harvey Norman first established in 1982 and goes public in 1987. In 1997 Harvey Norman opens their first international outlet in New Zealand, soon after it start to open in Singapore, Malaysia, Ireland and Slovenia; in 2012 Harvey Norman has over 200 outlet (ASX 2008). In the present Harvey Norman looking to expand to South Africa, Cape Town. Cape Town is the most famous tourist destination in Africa and once hosted the FIFA 2012.This report will study the South African business environment particularly on the Cape Town.

2.0 PESTL Analysis
2.1 Political Environment South Africa has reelection every five years. They are heavily influenced by the American government. “Civil war, weak regimes, and general instability in the region have historically had a negative impact on South Africa, and the country continues to face a large influx of illegal immigrants” (CRS 2008). According to the Corruption Perception Index (2011) the CPI for South Africa is relatively high 4.1. The corruption happen inside the government there are some problem with black market arm dealers. There correspondingly high crime rate in South Africa.
2.1.2 Analysis The political situations are not desirable for any international company including Harvey Norman. The reelection of the government may change the laws of regulations since for the past five years the same party has been taking the seat. The Civil wars in Africa make the place to be dangerous however in Cape Town the situation is more in control. There are relatively high