The annual SEC filings of Best Buy in indicate that the company sales decreased for sixth consecutive quarter at newly opened stores of the company within last 14 months of their opening in and 2. B- Strategic posture Having engaged in enormous layoffs and big store closings in , the company is geared towards shifting its business model towards small and mobile-store platforms.
The company has changed the Best Buy Europe's structure and smaller stores are now opened. The company is also reducing expenses on third party services.
What can any retailer learn from this case? According to this case, and concerning about the strategy that Best Buy has created, retailers can similarly create a retailer-led product strategy to leverage their customer knowledge for product differentiation and to understand what the needs of the customers are; they must discover what satisfies the customer and what not. How to Define the Structure of a Case Study Keep in mind that the structure may vary according to the type of case study and the discipline you are specializing in.
Therefore, before the writing stage, make sure you know what type of case study you need to deal with. In this paper I will identify what these issues are and how companies might be able to fix it. The management culture is a very important factor in the imprinting of a company: it shapes the relationship between working environment and employee satisfaction.
I will answer a few questions regarding the SAS's particular strategy of running the business in which the employees are unbelievably loyal, thanks to the benefits and cares that they receive from the employer. One critic calls SAS "a big brother approach to managing people. Aside from not adapting to the current market place, Best Buy has problems elsewhere. Best Buy has made crucial mistakes in its overseas ventures that have turned some of their international stores into business disasters.
In order to compete in an international market Best Buy needs to do better research regarding the demands of consumers in EACH international market they enter to avoid more embarrassing situations such as what happened in Turkey and China. Resources: Best Buy number one resource are their employees that have the skills and knowledge about what they sell.
This makes them a service oriented company. They want to help customers realize the benefits of technology and technological changes so they could enrich their lives in a variety of ways through connectivity.
They have the ability to effectively determine where to expand. They have become a global company with acquisitions in Canada and China. Also acquired Speakeasy Inc. Provider of broadband, voice data and information technology services.
Core Competencies: The company has the Centricity Model which was built abound a significant database of customer information, to construct a diversified portfolio of product offerings. They have also gained valuable experience in the process of integrating companies under the Best Buy family through acquisitions.
And they have a talent of retaining their sales staff. Which are trained with the knowledge of all the equipment they sell. Finding of Facts 1: Available cash and long-term debt is not desirable.
This is due to the acquisition of assets. It is great Revenue fell 2. Net profit shrank in the fiscal year to 1. This report will conduct a situational analysis for causes of revenue loss, profit decrease, and poor cash flows, including a summary for each problem.
The closure of its stores created fewer consumers and a decreasing number of units sold in the previous year, which disrupted revenue growth for the company. Words: - Pages: 4 Best Buy This program was first used in by Best Buy. The system was a success. The basic concept of Rowe is to take some of the pressure off the employees by relieving the stress from over working and allowing the employees to create their own work schedules.
By the end of , Circuit City was the second largest U. First, a large number of layoffs can reflect badly on Best Buy, possibly causing its stock prices to be lower. This will lower the high fixed costs associated with maintaining large brick and mortar locations. The basic concept of Rowe is to take some of the pressure off the employees by relieving the stress from over working and allowing the employees to create their own work schedules. A poorly organized case study will most probably confuse your reader and shed no clear light on the central topic or focal point. Their loyalty program is one of the largest in the U.
Before this program was implemented, employees tended to work long hours and were burnout, which caused the high turnover. Best Buy has many brands that they represent, also due to their Geek Squad they tend to focus on making sure the customer is
Therefore, people need to develop different types of study skills to help throughout their learning. In The Heart of Change, they describe and list the eight step process to support change in an organization. Some of the African countries with stable environments and promising economic climates such as Ghana or South Africa are striving to achieve technological progress similar to the United States, and Best Buy could potentially aid them in their pursuit. No longer to do they employ skilled and knowledgeable professionals whom customers relied on.
They have continues to grow steadily over time through innovations. Five of those 20 suppliers can account for 40 percent of their products.
Circuit City started off being the number one retailer of electronics. They gathered information about their customer and their buying habits, developed a database making them better understand existing customers; identify new consumer segments, etc. One business serves and supports the other.
In From my research I have discovered 5 top trends that management are struggling with today. In The Heart of Change, they describe and list the eight step process to support change in an organization. It is great The system was a success. The goal of this analysis is to help find which of these segments will have the most impact on Best Buy over the next few years.
Big sales of the almost obsolete products are only helping the company to get rid of the unwanted inventory; they are not profitable and should be avoided with strategic inventory planning. The companies name was changed to Best Buy in The competition among retailers in the consumer electronic industry is high with Wal-Mart being the frontrunner in the competition. Customers are now turning to social media to get information about companies and their products. Best Buy is no longer the all-powerful super store that it has been known as the past couple of decades.