...Best Buy has experienced poor performance in three areas: declining sales, declining net profits, and poor cash flow. Best Buy’s revenue decreased 4.7% during the 2010 fiscal year, and fell 2.4% in 2011. The company lost $1.23 billion, or $3.36 per share in 2011 (Savitz, 2012). “During the fiscal year ended 2011, the company’s cash and short term investments reduced to $1,125 million, as compared to $1,916 million in fiscal 2010” (GlobalData, 2012, p.2). This report will conduct a situation analysis of Best Buy, assess the internal and the external environment, and summarize key issues that can explain Best Buy’s declining sales, disappointing profits, and poor cash flow. Six potential causes of Best Buy’s declining sales are: 1. Ineffective strategy from the management board While e-commerce is booming and Internet sales are flourishing, Best Buy has not developed its Internet retailing operations aggressively, and is falling behind other virtual retailers. From 2006 to 2011, online sales of consumer electronics have seen overall value growth of $9 billion (Euromonitor International, 2012). One of Best Buy’s competitors, Amazon, is a profitable e-commerce business. It has captured many customers with its cheaper options, fast shipment, and convenient way to shop. Euromonitor International (2012) asserts that although Best Buy’s Internet retailing operations have a significant growth rate of 17%, Internet sales account for only 5% of the company's total sales...
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...Date: June 27, 2013 To: Corrin Whiteway, President and CEO, Best Buy Canada From: Emma, Director of Business Development, Best Buy Canada Subject: Arguments to Persuade the City of Red Deer to Allow a Best Buy Store In response to your request for a strategy that we can use for persuading the city council of Red Deer to authorize a Best Buy store, please find below a range of arguments that can be used in a presentation to the municipality next week. Red Deer is a city in central Alberta and it is Alberta’s third most populous urban area after Calgary and Edmonton. According to the 2013 municipal census, the population of Red Deer is now 97,109, which means that it offers a large enough market for a big-box store such as ours to be successful (The City of Red Deer, 2013). The ultimate goal is not only to petition the government to support the opening of Best Buy, but also to educate the mayor, the city council, and the planning commission about our business philosophy. Best Buy is able to make a strong case for receiving permission to establish a store in Red Deer. The evidence that is detailed in this document includes the impact on customers, the impact on employees, and the impact on the local community. Impact on Customers Best Buy is a classic example of a big-box store. These are large retail stores that are almost always located in suburban areas and that feature an extensive amount of floor space, generally more than 50,000...
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...run. I will touch on subjects from the book and link it to my job. Well it wouldn’t be right to start my paper off without telling you what operation management is. Operation management is the design, execution, and control of operations that convert resources into desired goods and services and implement a company’s business strategy. The first topic I would like to talk about is forecasting. Forecasting is the process by which companies and organizations analyze data and graphs to determine how to proceed with business decisions in the future. To link this up to best buy mobile. I would like to talk about the iPhone (4) launch for verizon.IT was February of 2011. The company was forecasting a big day. Some business decisions BestBuy had to make was how many iPhones to order. Don’t want to order too little and lose business. With apple products I have learned you can’t over stock your inventory. APPLE sells itself! Remember it like it was yesterday. We opened the store 2 hours early thinking the place was going to be rocking. We had three Verizon reps and 5 best buy mobile employees. Long story short it was not busy at all and we ended up losing money as a company due to the fact of opening store 2 hours earlier and staffing all of those people. I have learned that business decisions in the future are a big key to success. Before making the schedule for the week ahead my manager looks at previous data and graphs to guide him. He...
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...Executive Summary Currently Best Buy maintains the distinction of being the largest big box electronic retailer in the United States. The company has a top-ranked internet retail website and the number one customer loyalty program of its kind. Best Buy has more than 1 billion visitors to their websites and 600 million visits to their stores each year. Although this would seem to carry a significant market advantage, consumer purchasing practices has evolved from a direct contact, feel and touch experience to a remote, internet based method of research and shopping. The Consumer Electronics market has seen a steady decrease in revenue over the last three years. It has only been maintained in the margins by Smartphone and Tablet sales. The shrinking market and loss of market share to online retailers such as Amazon has taken its toll on Best Buy’s bottom line. Best Buy hopes to change this by making their sales associates and Geek Squad agents the authority on consumer electronics, delivering unbiased, knowledgeable advice hundreds of millions of times a year and offering unmatched support for the lifetime of the products they sell. These are all portions of Best Buy’s efforts to Renew Blue. This marketing plan also recommends two additional opportunities to increase market share. Developing an All in One system that allows Best Buy customers to receive system integration similar to Apple products for any product purchased from Best Buy, regardless of manufacturer. ...
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...Journal Entry 1 I. Class summarization In first class, we have learned a lot of things about information technology. IT is the use of computers to collect, store and retrieve data. Professor use a lot of examples to instruct the relationship between information technology and people. As we know, companies use information technology to increase their profits. The example of Bestbuy attracts me a lot. As we can see, people always go to Bestbuy to try the products and purchased the item on Amazon.com as Amazon offers a cheaper price than Bestbuy. Then we talk about the three applications of IT, they are supply chain management(SCM), customer relationship management(CRM) and enterprise resource planning(ERP). And the five forces(entrants, competitors, substitution, suppliers, buyers) are important for a company. We have also learned the generic strategy in the class, Companies should choose a strategy to be mainly use when they enter a new market. Also, we have learned the value system and value chain. Value system is the personal and cultural values used for ethical. For the value chain, we learned how to use support actions in different situation. In summary, I have a briefly understand of information technology after the class. The use of examples let me understood the notion clearly and specifically. II. Material related to the Case Netflix is an online subscription-based DVD rental company founded in 1997. After first class, I think the 5 forces analysis(entrants...
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...omtale i media og eksklusive avtaler med blant annet Best Buy. Det som startet som en ide på vei til jobb, skulle nå bli realitert. Pebble merket at etterspørselen var enorm, den var mye større en de forestilte seg, og fikk store problemer med å møte kravene til forbrukeren. Pebble uttalte at alle Kickstarter-supportere skulle få sin klokke med en gang den var ferdig fremstilt, anslått å være Januar 2013. Pebble klarte ikke å holde løftene sine ovenfor tilhengerene, og mange begynte å angre på at de hadde vært så tidlig ute med å gi dem penger, og krevde en tilbakebetaling. Pebble kom med nye datoer, men tiden gikk og løftene ble ikke holdt. Mange av de opprinnelige Kickstarter-supporterne endte opp med å måtte kjøpe produktet gjennom BestBuy, istedenfor å få smartklokken som først avtalt. (http://readwrite.com/2013/07/09/why-i-cancelled-my-pebble-smartwatch-order#awesm=~oBML9FAEbhH3WQ). 3.2.2 Var Kickstarter-kampanjen et riktig strategisk valg? Det kan diskuteres om Pebble faktisk gjorde det riktige valget med å bruke Kickstarter som en kampanje. På den ene siden fikk de en voldsom publisering og “word f mouth”-effekt, sammen med en enorm kapital, men på den andre siden klarte ikke Pebble...
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...John Day 10/28/15 Retail Marketing Professor: Scapparone Chapter 5 Discussion Questions. 1.) Why must a retailer view itself as a member of a larger marketing system? Can’t JCPenny’s Costco, or BestBuy be successful on its own? Being a member of a larger marketing system is a good idea. Being part of the system of say BestBuy lets customers know no matter where they are they can get the same products and services at any BestBuy anywhere in the world. I suppose they could stand alone, but being part of the larger marketing system brings great benefits. You get to use their models and their proved marketing platforms. 2.) Must a retailer be involved in performing all the marketing functions? If it can rely on other members of the channel, what functions can they perform and which members can perform them? Yes a retailer should be involved in every aspect of the company, do they have to di it themselves? No they can put these tasks in other people’s capable hands. The seven marketing functions are Pricing, Products/Service Management, Distribution, Financing, Marketing Information Management, Selling, and Promotion. 3.) Facilitating marketing institutions, since they don’t take title to the goods, add no value to a supply chain, Agree or disagree with this statement, and explain your reasoning. I disagree just because they don’t take title of the goods does not make them any less valuable in the supply chain. With agents, brokers, wholesalers, transporters...
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...software for the primary purpose of using it for school work and, secondary, entertainment. My goal is to find a laptop that is properly suited for online research, typing (writing software), playing games, and streaming/downloading movies, videos, and music. Therefore, I will need a laptop that has lots of space/memory, can multi-task without lagging, a good video/audio card and speakers, and a fast processor with good amount of RAM. I will therefore be comparing the 3 laptops mainly in those areas. I will also need a printer to print the research papers I type up and other school work such as articles for researching. I found 3 laptops that I will compare in order to determine which of the 3 best suits my needs. All 3 are sold by BestBuy. The first laptop is a Dell Inspiron, which costs $549.99. It has an Intel Dual Core processor with a speed of 3 GHz. It has a 6 GB RAM memory and 4 MB of cache memory. Therefore, these specs show that this laptop is good enough to run multiple (but not too many) programs simultaneously without lagging and perform fast. Furthermore, it has a hard drive disk space of 1 TB, which is sufficient to run the Windows 10 operating system, the software I am interested in (which will be discussed later in the “Software” section), and any word, spreadsheet, or presentation documents I will need to save to the hard drive. Additionally, it will suffice for any videos, movies, or music I will download. It also has an HD graphics card with...
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...Best Buy Strategic Initiative Fin/370 November 19, 2013 Nicole Church Best Buy Strategic Initiative For every company to grow and survive in the long run, they must have a strategic plan of where the company is and where they want it to go. It is of the utmost importance for top management and the board of directors to ascertain a strategic game plan for the organization. This will serve as an outline specifically identifying the precise steps they are going to take to meet their agenda. Major companies, such as Best Buy, will outline this in their annual report to shareholders. A major component of this is the financial planning on how costs and sales will be affected and the risk associated with their decisions. Best Buy is the world’s largest multi-channel consumer electronics retailer with stores in the U.S., Canada, China and Mexico and is the 10th largest online retailer in the U.S. and Canada. Its unique customer loyalty program has earned it the recognition of being number one and more than 1.6 billion visitors use its website and visit the stores each year. Its 145,000-plus employees are committed to helping deliver the technology solutions that provide product value and knowledge to customers, further enhancing the overall shopping experience as well as promoting new technology that is educational, enjoyable, and useful in the daily lives of the public. On April 30, 2013, Best Buy announced plans to sell its 50% ownership interest in Best Buy Europe...
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...the money value of all transactions between residents of one country and the residents of all other countries (pg 740). It provides information on: * A nation’s imports and exports. * Domestic residents’ on assets located abroad. * Foreign earnings on domestic assets. * Gifts to and from foreign countries (including foreign aid). * Exchange of assets. * Official transactions by governments and central banks. The balance of payments accounts record both debit(-) and credit(+). Definition of Debit: “Any transaction that supplies the country’s currency in the foreign exchange market is recorded as a debit”. Debit Example: an American retailer (BestBuy) wants to buy Toshiba TV sets so that he can sell them at his BestBuy stores in USA. To buy the TV sets from Toshiba, BestBuy has to supply U.S Dollars in the foreign exchange market in return for Japanese Yen. Then, he will pay Toshiba in Japanese Yen in exchange for the TV sets. Note: Think of when you go to the money changer to exchange currency. You supply your local currency and demand a foreign currency. Definition of Credit: “Any transaction that creates a demand for the country’s currency in the foreign exchange market is recorded as a credit”. The international transactions that are summarized in the balance of payments can be grouped into three accounts; the Current Account, Capital Account & Official Reserve Account. The Current Account The current account includes all payments...
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...or that like to keep control of their diet. Athletes mostly eat subway. I would say people who are mid-30 to older age would mostly eat subway. Sure young teen adults do but not nearly as much as older adults. | Oak-court Mall | The Oak-court mall is a place where you can shop with friends, family, and if you just want to shop by yourself that’s good too. It’s a fast-paced area. Can find all your shopping needs. They have great parking as well. Where ever you are trying to shop there is a parking lot available to meet your walking needs. | Anyone can shop at the mall but you want see to many older adults in the mall. Older adults meaning late 50 and older. You will mostly see young teen adults and middle age adults in the mall. | BestBuy | Has great parking. Best buy has a big...
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...1995 as a online bookstore and strategically expanded into other areas becoming the ‘Walmart’ of e-commerce world. By 2010, Amazon had a higher market cap than Target Corporation, Home Depot, Costco, Barnes and Noble, and Best Buy, only lagging behind that of Walmart among the US brick and mortar retailers. Our study would focus on analyzing how Amazon revolutionized the concept of digital enterprise and succeeded in becoming the numero uno online retail company. Amazon vision was to offer “Earth’s biggest selection” and to be “Earth’s most customer-centric company” and succeed to a greater extent in realizing this vision. Facing fierce competition from a variety of traditional and digitial competitors such as Walmart, Target, Bestbuy, Ebay, Barnes and Noble, Buy.com etc., Amazon was able to grow successful over the years through strategically reinventing and adopting itself. Amazon’s relentless costumer focus, ability to offer shopping convenience, consumer decision-enabling information, a wide selection, discounted pricing, and logistical competencies forms a very interesting case study for understanding present world’s competitive strategies of the firms. The growth of Amazon since its inception in 1995 and its evolution into its present business model help us learn some of the very important strategy lessons in staying competitive in the real world business and hence the motivation to pursue this study. Research Methodology: - What kind of data you think you...
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...The culture of Best Buy reflects a traditional business to being a more contemporary, flexible work schedule. Before the ROWE program, many workers were tired of being overworked, not being able to spend quality time with their families. It seemed like the employees worked on their day off, come in early, leave late to make deadlines and it was just overall stressful. As stated the company’s culture used to embraced long hours and sacrifice (Hellriegel/Slocum, 2011 p. 553). With all of this coming into play Best Buy chose to implement a new structure to help motivate the workers called the ROWE program. The number of people in the United States who say they are overworked as been rising from 28 percent of Americans in 2001 to 44 percent in 2009, according to Families and Work Institute. Instead of launching a “work-life balance” program, Best Buy rethought the very concept of work. Under the Results-Only Work Environment program, ROWE. Here the employees can work when and where they like, as long as they get the job done. (Hellriegel/Slocum, 2011 p. 553). The ROWE program consists of 13 principles and rules, the key ones are: There are no work schedules in the traditional sense, every meeting is optional, with a few key exceptions, employees are not to judge how colleagues spend their time, thus there is no focus on “how many hours did you work.”, Work is not a place you go , it’s something you do, as long as the work gets done, employees do whatever they want whenever...
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...Competitive Analysis NURCAN DURAN Econ 202 November 9, 2014 GameStop is a privately held company based in the United States. They specialize in the sale of videogames and videogame systems. Their big draws are midnight releases of games and selling used games (at near new prices, sometimes, with only a five dollar difference in price for certain games that are still considered popular). GameStop has a strong presence in the niche of electronic home entertainment selling, buying, and trade-ins of new and used videogame systems and accessories GameStop also offer a rewards program to its customer that provides them with more incentives to encourage customers to trade in used games and electronics, which GameStop makes more money off of when they resell compared to new merchandise. There is not a lot of specific information available for GameStop. The primary fixed costs of GameStop are probably just rent they pay to the property owners where their stores are located. The primary variable costs include employee wages, utilities, and the costs of the products they sell (including goods bought from customers and trade-in values), which vary with demand and expected demand. Variable cost are probably the most important factor in the company’s performance. A new game can go from sixty dollars down to thirty dollars in just a few months after its release if there is not a high demand for it, whereas a more popular game may maintain a fifty or sixty dollar price tag for a year or...
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...MIS 446 Unit 2 Review Music 1. Review the evolution of the music industry. a. Old Model: Go on tour for free (or little) in order to achieve higher sales with record label. i. Record Labels had all power in contracts, musicians made very little in all reality ii. Originally only way to hear music was live, so records were a big deal to be able to listen at home iii. Bundling in albums iv. Record companies had the power, tried to sue customers b. Newer Models: v. Promoting self as a brand, like “Kanye” vi. Use of video as a medium: YouTube (allows for long tail content) vii. Internet breaks the bundle, people can buy single songs viii. Give away music for free or very little (Spotify, iTunes, YouTube, Pandora) in order to make money on mega tours, on merchandise, on brand itself ix. Avoid record deals/buy out of record deals x. Capitalize on people paying for the experience, you can’t download or torrent the experience xi. Use of metadatamakes iTunes work (crowd sourcing of track names) c. General Trends: xii. Listening to music at home has become private, go to shows for actual crowd experienceUsed to be records with speakers in order to listen, group activity xiii. Music is now an experience/service/information goodUsed to be a physical commodity 2. How did the internet force the music industry to change? What are...
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