...Best Buy Annual Report Project Summary and Conclusions 1. Company’s Performance: Profitability: (Gross Margin, Profit Margin, Return on assets, Return on shareholder’s equity, Return on Market Equity) * In recent years , Best Buy Co., Inc. has seen revenues shrink from $50705M USD to $45085 USD, and the company‘s net income from $1317USD to -441M USD. * Activity: * Poor Inventory Management * Total assets turnover is 2.99 in 2013, total assets management of the company is seems higher than Store competitors Radioshack, hhgregg , Aaron’s, Inc. * Inventory Turnover is turn down year to year 7.19 to 6.08 * Low Account Receivable Turnover ratio implies, the company should re-assess its credit policies in order to ensure the timely collection of imparted credit that is not earning interest for the company.(2009 to 2013 recespectvely;37.35 to 19.62) Solvency: Liquidity Enhanced Quick Ratio: The amounts of cash equivalents at February 2, 2013, and March 3, 2012, were $740 million and $343 million, respectively, * Declining Liquidity Cash Flows: Goodwill Impairment, Restructuring Charges, Interest Expenses, Loss from Discontinued Operations, Net Earnings from non controlling interest Increasing label of inventory year after year (more investment on inventory) 2. Company’s Strength/Doing well and Improving Areas: * Geek Squad expertise and knowledge, * Total assets management, assets turnover is improved continuously since...
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... technology, and the pursuit of happiness.” The people aspect is in reference to the employees creating relationships with their customers. The technology part of the vision is in reference to tying the content such as services etc, to the products sold, which in turn connects the world. The pursuit of happiness portion is to make happy employees, which in turn will make happy customers with the service they receive. Strategy Best Buy uses a customer-centric strategy, which means that they essentially look at their business through what the customer needs versus what the producer does. This strategy has also helped Best Buy stay afloat because they understand the solution aspect for their customers to their products that they purchase. Another strategy Best Buy is using is organic growth, this means that they are taking their customer base that currently exists and versus expanding to gain more customers, they are working with their loyal customers to get them to spend more. Strategic Initiatives One of the major initiatives Best Buy is taking for their strategies is to use the idea of organic growth. They are doing this by adding in more services for products that they sell, like cameras and laptops-which tend to be the brunt of accidental damage, and turning their services into a happier experience for their customer by offering an accidental replacement plan. This allows their current customer to spend a little more in their store, while benefiting themselves by...
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...software, communications, entertainment, and social factors such as demographics and cultures, all things he came to realize during his consulting years. While Stephens was attending college and working towards earning a degree in computer science, he also worked as a consultant repairing televisions, computers, and several other items; however his main focus was computers. Through his consulting experience, he came to realize that most people needed help with technology, such as, how it works, its operating system, how to install software, and especially how to read and understand the manuals. 2) What changes in the purchasing patterns of (a) all consumers and (b) woman made the acquisition of Geek Squad particularly important for Best Buy? Changes in social factors such as demographics and culture helped make Geek Squad very popular. In the past, many manufacturers and retailers focused primarily on men. However, they found that woman were becoming increasingly more and more interested in the personal computing and home entertainment. Best Buy’s consumer research began indicating that woman will more than likely outspend men in the near future. Furthermore, Best Buy’s consumer research has proven that women tend to expect personal service during the purchasing and installation after the purchase, just what the Geek Squad is designed to provide. 3) Based on the case information and what you know about consumer’s electronics, conduct an environmental scan for Geek Squad...
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...BestBuy Case Study TROYFONTAINE MACON: M6marketing [2011] [Best Buy is considering reducing their current store sizes, and changing their operational infrastructure. This is a good idea, and a typical retrenchment strategy, but I believe there to be better alternatives. Executive Summary According to multiple media sources, Best Buy is considering reducing their current store sizes by 10%, and changing their operational infrastructure. This is a good idea, and a typical retrenchment strategy, but I believe there to be better alternatives. Implementing Subway restaurants inside of Best Buy‟s instead of reducing the size of Best Buy stores by 10% may have the same financial underlining but not the same market impact. Subway is a restaurant chain that has (1) Brand Recognition (2) Good Public Image “healthy”, “fresh”, “Inexpensive” (3) Strong Independent Advertising Campaigns (4) Profitability within a Growing Industry. Subway restaurants promote and advertise timely events such as movies, athletic events, months, holidays, etc. to go along with Subway‟s existing promotional deals such as the “$5 Footlong” sandwich deals. Subway creates daily incentives for customers and provides a multitude of product offerings that allow Subway not to get stagnant or predictable to consumers. “Take your pick; eat a sandwich on a budget and lay out $5 for a 12‟inch submarine, or eat a fresh, healthy one to train like Michael Phelps, lose tons of weight like Jared Fogle (Subway spokesman)...
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...Best Buy Weaknesses 1. Best Buy will match prices on identical items at a competitor’s physical store but will not match a competitor’s online price due to company policy. (http://www.cnbc.com/id/45986486) 2. Best Buy has expensive 1,100 large-format outlets that carry a long-term lease and costs Best Buy thousands in insurance, electricity, and displays per year meanwhile, Amazon (one of Best Buy’s competitors) owns and operates zero physical stores. (http://www.cnbc.com/id/45986486) (http://www.slate.com/articles/technology/technology/2009/02/shop_till_everyone_else_drops.html) 3. Best Buy’s net earnings from continuing operations have declined from $3.44 per share in 2011 to $2.89 per share in 2012. (Best Buy’s 2012 10-K Report, SEC Fillings – “As Reported Statements”) 4. A net loss of earnings attributable to Best Buy Co., Inc. totaled $1,231 million in 2012, while in 2011 they experienced a net gain of $1,277 million. (Best Buy’s 2012 10-K Report, SEC Fillings – “As Reported Statements”) 5. Best Buy’s purchases of fixed assets, investments and acquisition of mindSHIFT Technologies in 2012, resulted in a $724 million loss in cash from investing activities, an increase from the $569 loss Best Buy experienced in 2011. (http://investing.money.msn.com/investments/stock-cash-flow/?symbol=BBY) (http://www.mspmentor.net/2012/01/03/beyond-retail-best-buy-completes-mindshift-acquisition/) 6. Best Buy employees would use an intranet website...
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...BEST BUY [pic] [pic] Making Life Fun & Easy! [pic] Tiago Alves Andrew Bornstein Mae Brana Grace Tan Meredith Walters Table of Contents Business Summary 2 Vision Statement & Corporate Values 2 Rankings 2 Market Share 3 Stock Chart – 5 Year Performance 3 Financial Highlights 4 History 5 Key Executives 6 Strategy 7 Customer Centricity 7 Value-added Services Business 9 Supply Chain and IT Systems 9 New Store Openings 10 Mergers & Acquisitions 10 Employees 11 Key Competitors 12 5-Year Performance vs Key Competitors 13 Appendix 14 Business Summary Best Buy is a specialty retailer of consumer electronics, home-office products, entertainment software, appliances and related services in a superstore format. It operates retail stores and commercial Web sites in the U.S., Canada and China, under the brand names Best Buy (BestBuy.com and BestBuyCanada.ca), Future Shop (FutureShop.ca), Magnolia Audio Video (MagnoliaAV.com) and Geek Squad (GeekSquad.com and GeekSquad.ca). As of Feb 25 2006, Best Buy operated 742 Best Buy stores, 20 Magnolia Audio Video stores and 12 Geek Squad stores in the U.S.; and 118 Future Shop stores, 44 Best Buy stores and five Geek Squad stores in Canada. Best Buy operates two reportable segments: Domestic and International. The Domestic segment is comprised of all U.S. store and online operations, including Best Buy, Magnolia Audio Video and Geek Squad....
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...Geico Total Rewards Program Francena Hicks Dr. David Fountaine,SPHR Talent Management HRM53201016 10/27/13 Introduction The purpose of this paper is to discuss the Geico employees’ Total Rewards Program and its alignment to the advantages of total rewards programs in general that are noted in the literature. According to the Geico website, there are five benefits to their Total Rewards Program: Health & Well-Being, Education & Training, Finance & Retirement, Time off & Leave, and Family & Life. The first part of this paper will look at these five programs in-depth and explain how Geico intends to benefit its employees. This analysis will include an evaluation of the effectiveness of the communication of Geico’s total rewards program based on the website’s descriptions of the benefits and include two recommendations for improvement to the program and/or its communication practices. By assuming that there are two weaknesses to the current plan, this paper will provide two improvements for these weaknesses to make employees happier. The final half of the paper will match Geico’s program with data from the literature on the effectiveness and benefits of these types of programs and discuss any implications there may be for the Geico program. Determine which facets of the Geico total rewards program align with the five (5) top advantages of a total rewards program outlined in Chapter 2 of the textbook and discuss your reasoning. Geico’s total rewards program...
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...Stephanie Dunfee Article Summary 1 May 27, 2015 Video Case #1 – Chobani: Making Greek Yogurt a Household Name 1. Hamdi Ulukaya identified residents of Long Island, New York first for his first cups of Greek yogurt. The first cups were placed on shelves of a small grocery store in 2007. He focused on the “4Ps” to promote his yogurt. The first P was his product strategy. Ulukaya hired a yogurt master to help him develop Chobani. The product strategy focused on the actual product and packaging that product appropriately. The product undergoes an authentic straining process that removes excess liquid whey, resulting in a thicker, creamier yogurt with 13-18 grams of protein per single-serve cup. Chobani is higher in protein than regular yogurt, made with real fruit and only natural ingredients and preservative free. It does not contain any artificial flavors or sweeteners, but does contain five live and active cultures, including probiotics. As far as packaging, Ulukaya wanted a European style cup with a circular opening exactly 95 millimeters across. This shorter, wider cup is more visible on store shelves. In addition, he chose shrunk-on plastic sleeves with bright colors. Ulukaya’s price strategy involved approaching retailers directly rather than utilizing distributors. Prices were set high enough to recover costs and give reasonable margins to retailers, but not so high that they could be undercut. Ulukaya’s place strategy proved to be an extremely smart move. He worked...
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...Best Buy Competitor: hhgregg Executive Summary Company Best Buy (“BBY”, or the “Company”) specializes in consumer electronics. They are one of the largest specialty retailers operating as an e-commerce and physical retailer across the United States, Europe, Canada, and China. BBY stores offer video products, including televisions, e-readers, navigation devices, digital cameras, digital camcorders, DVD and Blu-ray players. The Company also offers audio products, such as MP3 players and accessories, home theater audio systems and components, musical instruments, and automobile electronics like car stereos and satellite radios. Each store also carries a variety of computing and mobile phone products, such as notebook and desktop computers, tablets, monitors, and mobile phones, together with the related subscription service commissions, hard drives and other storage devices. BBY outfits offices with the necessary networking equipment, office supplies and printers. The Company also caters to a recreational market with their various entertainment products, including video gaming hardware and software, DVDs, Blu-rays, CDs, digital downloads, and computer software. BBY provides customers with services in addition to merchandise; the Company offers delivery and installation services for home theaters and mobile audio and appliances, service contracts, extended warranties, product repair, and even offers snacks and beverages. BBY operates retail stores and call centers, as...
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...Best Buy disaster plan Christian Jones Qazi Ali CIS 359 May 25, 2012 Abstract Through this paper I and my partner will be discussing number of things about one of the biggest computer retail company in the United States of America. First is that we will provide some background information on the Best Buy company such as how it came about and how it has evolved from the past and to the present date. Basically we will give up a little bit of information on the owner as well as the company itself. In addition, we will also cover some of the problem that we face will developing this reasech paper. We will also cover some key points that we reasech or were told there disaster recovery plan. Also we provide solutions to their disaster recovery by point out some problems that they might face in the near future. We will also discussion how the plan will work in some cases and how it will not be as successful in other cases. Disaster Recovery for Best Buy A disaster is defined as an unexpected, unplanned catastrophic event that renders the Organizations ability to perform mission-critical and critical processes, including the ability to do normal production processing of systems that support critical business processes. A disaster could be the result of significant damage to a portion of the operations, a total loss of a facility, or the inability of the employees to access that facility. There were a lot of challenges that occurred during the development of this...
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...http://danielsethics.mgt.unm.edu Best Buy Fights Against Electronic Waste INTRODUCTION Although Best Buy has not been in business as long as other established brands, the company is a well-known name both within and outside of the United States. As the largest consumer electronics retailer in the world, it ranks number 72 on the Fortune 500. To maintain its competitive advantage against rivals in specialty electronics, Best Buy is engaging in competitive pricing strategies, international expansion, and the targeting of a younger demographic. In addition to discounted and high-quality products, Best Buy became known for its customer-centered approach and sustainable outreach. After realizing the importance of sustainability to its customers, Best Buy implemented an extensive recycling program. In the process, Best Buy earned itself a name as a socially responsible company. The company also adopted programs and systems to provide flexibility and aid to its employees. This case provides a brief history of Best Buy, including details on its expansion and the models it implemented to become a success. Next, we discuss Best Buy’s vision, along with the actions the company is taking to turn its vision into a reality. We briefly analyze Best Buy’s community outreach programs and look at its large-scale environmental initiatives, particularly those regarding energy savings and recycling. Finally, we examine some of the challenges Best Buy is encountering as it struggles to...
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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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...for all types of electronics. TechEasy knows technology, from any brand and model computer to home theaters, cell phones, cameras, and car technology. TechEasy can fix it or service it no matter where a customer bought it. We’re here day and night, serving and assisting customers by phone, in-store, or in-home. TechEasy will always respect customer’s equipment as if it were our own. To us, technology is an art, and we love expressing ourselves through it. Description of the Entrepreneur will be the owner of TechEasy. John has been working with technology since childhood, and has gone to school for computers as well. John is currently employed full time and Best Buy and has been there since 2007. John’s experience with Best Buy gives him the advantage of knowing the day to day operations. John will leave Best Buy once TechEasy is ready to start up its grand opening. II. THE PRODUCT/SERVICE Benefits TechEasy will offer services that will assist customers with all their electronic needs. Our services when explained will not sound complex for customers to comprehend. Our services are grouped into two categories: repairing and servicing. Repairs From the first day of grand opening, we will offer in-home repair and consulting services, so that our customers don't need to take time out of their busy days to haul a computer in to our Repair Shop. This is the single biggest frustration John has seen among small business owners and entrepreneurs needing help with their computers...
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...This summer I needed a reliable source that I could enjoy and would help better my education at the same time. This source would have to have the capability of both holding and writing notes. as well as my leisure activities such as the internet and downloading. After researching on websites (futureshop.com) and reading flyers for Future Shop and Best Buy, I noticed that the marketing they were advertising was inadequate do to the fact that the price offered online and in the flyers was incorrect at the store or at most times out of stock. As well I felt that not every customer paid the same price. After conversing with a school mate about my lap top hunt I came to a realization that" it's not always what you know it's who you know". I would travel back and forth to both Future Shop and Best Buy for note books in stock, and each time a Sales persons would give me a price the next time I would return the price would have changed from employee to employee. As a customer I would have felt cheated paying my money at Future Shop or Best Buy knowing that another customer probably had gotten it for cheaper. I needed a company that put their customers first and not having commission as a first priority. I began to think of companies that have been around and have excellent quality products pre existing. After researching once again I noticed that Apple had exactly what I was looking for the customer first qualities, as well as an existing product, which is the I phone that I currently...
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...The Stress Management Program for Best Buy INTRODUCTION The anxious feelings, sweaty palms, wondering how you will get everything done on time, wondering when you will see your family in between the long work hours, dealing with a micro-managing supervisor or unproductive co-workers that push their work on to you, or even the peer that says they enjoy deadlines! These are all depictions of what we call “stress”. While a certain amount of stress is needed to motivate individuals into action, called eustress, when an individual experiences anxiety and physical tension as demands are placed on them which exceed their abilities to cope, distress occurs (McShane & Von Glinow, 2008). Stress in the workplace is becoming a major concern for employees, employers, managers and government agencies. Workplace stress can be defined as the change in one’s physical or mental state in response to workplaces that pose an appraised challenge or threat to that employee (Colligan & Higgins, 2005). Stress research pioneer, Hans Selye, determined that people have a fairly consistent physiological response to stressful situations, called the general adaptation syndrome, providing an automatic defense system to help us cope with environmental demands (McShane & Von Glinow, 2008). More specifically, the three stages of the general adaptation syndrome: alarm (alerts the person to the situation and prepares for the resistance stage), resistance (shut down of the body’s immune system...
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