Expert answer:Management Project 1 PPT making and a 2 page answe
Expert answer:this is based on a previous project i made and i attached all the information needed in the file below, the presentation has to be around 8 mins long and around 7-8 slides need.the essay should be around 1-2pages long
instruction_mgt.docx
best_buy.pptx
writen_report.docx
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Question：
DESIGN A STRATEGY FOR BEST BUY TO IMPROVE ITS ON-LINE/WEBBASED BUSINESS.
PPT has to be 7-8 slides long
The essay should only be answering the question above.
Best Buy Company
Company Logo
Company Name and Description
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Best Buy Company, Inc.
Incorporated on October 20, 1996
Provides technology services, products and solutions
Offers products to customers in its physical stores
Utilize websites, mobile applications and geek squad
agents to sell to clients
• Operates in domestic and international segment
Company Name and Description
Cont’d
• Domestic segment comprises of Best Buy, Best Buy Mobile,
bestbuy.com, Best Buy Express, Magnolia Home Theater, Best Buy
Direct and Geek Squad
• International segment caters for operations in Mexico and Canada under
the brand names bestbuy.com.ca, Best Buy Express, Best Buy,
bestbuy.com.mx, Geek Squad and Best Buy Mobile
• The company offers six categories of products namely computing and
mobile phones, entertainment, consumer electronics, services, appliances
and others
• Examples of products and services in the categories include home
theater, tablets, movies, hardware and software, music, dishwashers,
refrigeration, installation, design and snacks and beverages
Mission Statement
• “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.”
• The mission is customer oriented
• Its focus is to satisfy the needs of customers
• Also aims to solve the problems of clients
Primary Customers
• Millennials are the target customers for Best Buy
• Best Buy views Millennials as a significant market
segment
• They are seen as an important consumer market
• The company relies on the fact that millennials are
digital natives
Major Competitors
• Major competitors include;
➢ Wal-Mart Stores, Inc.
➢ Apple Inc.
➢ Amazon.com, Inc.
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Wal-Mart is the number one retailer in the world
It is also the number one retailer in Mexico and Canada
Apple is the most successful technology company across the globe
Amazon is the most effective firm in the world
Its stores offers all kinds of products and services such as books, music,
movies and games among others
Management Challenges for the
Company
• Inefficient web-strategy
➢ Best Buy’s inventory comes to its online sales strategy
slowly
➢ Also the shift of the company’s inventory to the online
strategy is ineffective
➢ The company is slow on using the web strategy
➢ It is behind the inventory movement curve of its
competitors
Management Challenges for the
Company Cont’d
• Substandard inventory management
➢ Due to its inefficient web strategy the company has a poor
inventory management
➢ It fails to capture clients on site
➢ Most customers test products at Best Buy before purchasing
them through Amazon
• Poor customer service
➢ It utilizes inferior customer service practices
➢ It has isolated technology users through the inferior services
References
• Best Buy Co., Inc. Names of Competitors – Companies & Details Hoovers.com. (n.d.). Retrieved from http://www.hoovers.com/companyinformation/cs/competition.best_buy_co_inc.a37b085cc4ac62ce.html
• Jurevicius, O. (2013, September 14). Best Buy mission statement 2013.
Retrieved from https://www.strategicmanagementinsight.com/missionstatements/best-buy-mission-statement.html
• Margaret Bogenrief, ACM Partners. (2012, January 9). Three Areas
Where Best Buy Screwed Up. Retrieved from
http://www.businessinsider.com/why-best-buys-not-the-best-bet-20121?IR=T
• Millennials as a Target Market for Best Buy | College of Business Illinois State. (2017, June 13). Retrieved from
https://business.illinoisstate.edu/bestbuy/millennials.shtml
Best Buy is an electronic retail firm operating in the domestic and international segments.
Since its introduction into the retail industry in 1966, the company has developed to become the
world’s leading electronic organization. Best Buy faces stiff competition from organizations such
as Apple and Amazon. It has been able to continue performing well in the industry despite the
stiff competition from other multinational organizations. Also, Best Buy remains a competitive
retailer in the market due to its capacity to identify a target market that is ready to purchase its
products and services.
The primary or target customers of Best Buy are the millennials. According to Best Buy,
millennials are the primary customers of their products. The millennials are a significant market
segment as well as an important customer market. The company relies on the fact that
millennials are digital natives meaning they feel that technology sets their generation apart from
other generations. Best Buy’s customers comprise of the individuals that desire electronic
products and services such as music, software, and home appliances among others.
Price is considered to be of value to the customers. Clients believe that price is of primary
significance or value (“10-K,” n.d.). Competitive prices tend to attract the attention of customers
to purchase goods and services from the organizations. High prices set on goods decrease the
demand for customers and results in a shift to the rival companies who can offer similar products
at an affordable cost. On the contrary, low prices make the customers question the quality of
products. As such, Best Buy has to ensure that the price of goods is competitive to attract clients
to purchase its products. This is because price is an essential factor that is of significant value to
the customers.
Best Buy has three major competitors namely Wal-Mart, Apple, and Amazon (“Best Buy
Co., Inc. | Company Profile from Hoover?s – Companies & Details – Hoovers.com,” n.d.). WalMart is recognized by most customers as the world’s number one retail firm. Further, it is the
number one retailer in Mexico and Canada and hence offers stiff competition to Best Buy in the
international segment. On the other hand, Apple is one of the most successful technology firms
across the globe. Thus, it offers a stiff competition to Best Buy regarding technology products
and services. Amazon is also another competitor that is known to be effective across the world.
The company provides a store that has all kinds of products and services such as music, books,
games, and movies among others.
Best Buy’s ownership pattern is characterized by the presence of various shareholders
with institutional holdings. The total number of holders in the organization are 593 whereas the
number of shares 265,884,018. The top five holders in the organization include Vanguard Group
Inc., FMR LLC, Blackrock Inc., State Street Corp, and American International Group Inc. (“Best
Buy Co., Inc. (BBY) Ownership Summary,” n.d.). The company’s ownership pattern presents a
snapshot of the institutional holdings.
As of July 31, 2017, the company’s profit margin was reported to be 24.08%. The profit
margin represents the percentage of each dollar of Best Buy’s revenue. The percentage of
revenue is achieved after accounting for the company’s cost of goods sold. Also, Best Buy’s
investment requirements are centered on its growth and development. The company’s need and
goal to grow and expand its business operations internationally contributes to the investment
requirements such as pension and endowment funds.
Best Buy is organized in a way that ensures information shared in the organization moves
from the top to bottom. The organizational structure is designed in such a way that the chief
executive officer is the head of the company (“Exploring the Organizational Structure of Best
Buy,” n.d.). The CEO is responsible for sharing information with the executives of the company.
Further, the company is organized in three distinct sub-organizations. Each sub-organization has
a different management. The senior manager in each organizational department shares
information with regional managers who then pass on the same data to the personnel in the
organization.
Best Buy has various management challenges that affect its success in the current and
future markets. The first challenge is its inefficient web-strategy. The company’s inventory
comes to its online sales slowly. Further, the shift of Best Buy’s inventory to the online strategy
is ineffective. Also, Best Buy is slow on utilizing the web strategy in its operations. As such, its
ineffective online strategy makes the company be behind its competitors regarding inventory
movement.
Another management challenge facing Best Buy is based on standard inventory
management. The company has a poor inventory management which is as a result of the
inefficient web strategy. Also, Best Buy fails to capture its clients on site. This is because most
of the customers tend to test the best products at Best Buy before deciding to purchase them
through Amazon. Poor customer service is another management challenge affecting Best Buy.
The company makes use of inferior practices while serving its customers. In turn, it has isolated
the technology users by using inferior service practices.
As a company working in the retail industry, Best Buy is likely to face trade or regulatory
organizations. For instance, government regulation is one of the primary trade organizations that
Best Buy has to face in the industry. The company faces regulatory challenges resulting from
government regulations. The major trade regulations in retail industry include taxes, whereby the
company is expected to pay the corporate tax rate in the US (“Retail & wholesale trade industry
fact sheet,” 2017). The second regulation is the “Federal Trade Commission and Department of
labor.” Best Buy has to deal with the labor relations laws in the industry.
Also, Best Buy should consider various publications in the retail industry to help boost its
performance. These publications enable the company to market its products to customers. For
instance, some of the major publications in the industry include Retail Wire, Retail customer
experience, the Internet retailer, and Tony Donofrio. Further, National Retail Federation News
(NRF), Minding the Stores publication available on Forbes and the retail adventures by Kizer
and Bender are also essential publications in the industry.
Trade shows and exhibition in the retail industry are also utilized to help companies
market their products and services to the public. Some of the major exhibitions in the industry
include retail business technology expo and internet retailer conference and exhibition. Also,
other significant trade shows comprise of the national retail federation loss prevention
conference and expo, and international retail design conference.
Best Buy is connected to its employees with the help of social networks such as
LinkedIn. The social networks are deemed as the sources of employees. The company expects
potential employees to contact them via the social platforms such as LinkedIn to get an
opportunity to work at best Buy. The company expects the job seekers to keep up with its
floorings source by joining LinkedIn to receive latest information, insight, and updates on
available job opportunities.
References
10-K. (n.d.). Retrieved from
https://www.sec.gov/Archives/edgar/data/764478/000076447816000064/bby2016x10k.htm
Best Buy Co., Inc. (BBY) Ownership Summary. (n.d.). Retrieved from
http://www.nasdaq.com/symbol/bby/ownership-summary
Best Buy Co., Inc. | Company Profile from Hoover?s – Companies & Details – Hoovers.com.
(n.d.). Retrieved from http://www.hoovers.com/company-information/cs/companyprofile.best_buy_co_inc.a37b085cc4ac62ce.html
Exploring The Organizational Structure Of Best Buy. (n.d.). Retrieved from
http://www.aacstudents.org/informative-essay-example-exploring-the-organizationalstructure-of-best-buy.php
Retail & wholesale trade industry fact sheet. (2017, June 7). Retrieved from
https://www.business.gov.au/info/plan-and-start/develop-your-business-plans/industryresearch/retail-and-wholesale-trade-industry-fact-sheets
…
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