Seminar in Business Policy HW
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best_buy_co._inc252c_2.pptxBest Buy Co.Inc.
Presented by:
Suletan Alharbi
Yassar Moukhtar
Mohammed Al Shabeeb
Current Situation
A. Past Performance
Founded and incorporated in Minnesota in 1966 by Richard M. Schulze and Gary Smoliak.
Essential, Best Buy started as Sound of Music Company
1983 the company changed its name to Best Buy Co. Inc.
One of leading companies that operates as a retailer of consumer electronics, home office products, entertainment software, …etc.
Interred international market by acquisition of Future Shop Ltd. In Canada.
In 2000, launched its online retail store: BesBuy.com.
Current Situation
B. Strategic Posture
Mission:
"Our formula is simple: we’re a growth company focused on better solving the unmet needs of our customers—and we rely on our employees to solve those puzzles. Thanks for stopping. “
2.Objectives:
Increasing revenues.
Sustaining growth and earnings
High costumer satisfaction through employee’s knowledge and service.
Educates its employees of new products, tech, and services
Meet costumers needs with end-to-end solutions.
Expand nationally & internationally .
Current Situation
3.Strategies:
“We will right size the company to better meet customers wherever they want, whenever they want, in the neighborhood store or online with a strengthened e-commerce capability that opens markets at home and abroad Source.”
4.Policies:
“Mature" product sales policy.
Price guarantee.
B. Strategic Posture
Corporate Governance
A. Board of Directors
Hatim A. Tyabji,Chairman of the Board
Chairman of the Board since June 2012.
Verifone (NYSE), transaction automation services.
Bradbury H. Anderson,Best Buy (former CEO and board member)
Rejoined Best Buy Board as a director in 2013 after retiring in June 2010.
Prior to his retirement in 2010, he was a director since August 1986 and
was Best Buy Vice Chairman.
Lisa M. Caputo,The Travelers Companies, Inc.,
Lisa M. Caputo brings exceptional leadership, marketing, branding, communications, government affairs, community relations and corporate social responsibility understanding to the board.
Corporate Governance
B. Top Management
Hubert Joly,President and Chief Executive Officer
Best Buy’s Chief Executive Officer and a member of its Board of Directors.
A strategic thinker with deep financial acumen and global experience leading large, international employee groups.
Sharon McCollam, Chief Administrative Officer and Chief Financial Officer
Appointed Executive Vice President.
In 2012, as Chief Administrative Officer and Chief Financial Officer.
External Environment
A. Natural Environment
1. Climate:
Early 1980s, a tornado swept one of Sound of Music (Best Buy) most profitable retailer in the area.
B. Societal Environment
1. Economic
US recession.
Price forced down.
2. Technological
Keep up with technology.
Take advantage of technology (online shopping).
3.Political/Legal
Outcome of any serious political conflict between the US and other countries.
The federal reserve system regulations.
4.Sociocultural
Black Friday.
Society education.
External Environment
B. Societal Environment
C. Task Environment
1. Threat of New Entrants
Relatively low.
2. Power of Buyers
As individuals, buyers have no power in Best Buy.
Purchasing quantity.
Individuals are not able to build their own e-products.
Brands Availability.
3. Threat of Substitute Products
Threat of substitute is fairly low. People depend on tech and e-products.
External Environment
4. Power of Suppliers
High power of supplier.
Best Buy has to put its hands on new products produced by suppliers to have it available for its customers and keep its inventory fresh and updated.
5. Rivalry Among Competitors
High rivalry among competitors.
Wal-Mart (Low cost)
Amazon (Online)
External Environment
External Strategic Factors
Internal Environment
Corporate Structure
The company structured as functional organization which is a the most common one among organizations.
Managed by competent board of directors.
The company has several departments that engages in the production of a certain line of products.
Corporate Culture
Blue shirts and khakis.
Honesty in the engagements.
The company engages in fairness and provides a safe and healthy working environment that is free from any bias.
Built good relationship among levels of managements.
Internal Environment
C. Corporate Resources:
1. Marketing:
Outside sources.
Address the need of costumer lifestyle.
Be at forefront of technological advances.
Meet customer needs with end-to-end solutions.
2. Finance
Domestic revenue of $12.55 billion declined 0.3% versus last year.
International revenue of $4.16 billion increased 2% versus $4.09 billion last year.
3. R&D
R&D is a significant element that helped Best Buy to be successful.
R&D focuses includes:
Operations and logistic.
Human resources.
Marketing.
Information Systems.
Best Buy believes that by utilizing R&D capital, it would be able to respond to its customer`s needs.
Internal Environment
4. Operations and Logistics
Nationally & internationally, Best Buy built strong partnerships with different vendors and suppliers.
Maintain a strong focus on operational efficiency.
5. Human Resource
provides unique employees who could help to implement company’s strategy.
straight salary which had impact in both ways.
Internal Environment
6. Information Systems
Best Buy takes advantage of internet with BestBuy.com which is one of the largest online electronics retail store.
Facebook page which would update consumers on special events and exclusive offers.
Mobile Apps.
Reward Zone Program.
Database of costumers.
Internal Environment
Internal Strategic Factors
Strategic Factors
A. TOWS Matrix
B. SFAS
Strategic Factors
Recommendations:
Lower their expenses by focusing on operation.
Be more active on online business.
Inter more markets like middle East.
Develop their Human resource system.
Thank you all and be free to ask us any question.
