...Best Buy On the Brink Background Best Buy and Circuit City were the two major brick and mortar stores where consumers were able to purchase electronics. With the rising technology and E-commerce, Circuit City was not able to adapt to the changing environment and now Best Buy is on the same path as its former competitor. Best Buy had to close down fifty stores and fire over 400 employees due to its poor financial performance. Best Buy CEO Brian Dunn explained that there was no innovation by the company to adapt to the changing market on how consumers were purchasing electronics. Consumers are now price comparing with Best Buy’s products with online retailers. Online competitors of Best Buy are utilizing the new emerging technologies to help make purchasing of products convenient to the consumers. Problem Statement Best Buy is on a slow downward slope towards bankruptcy, if the company does not have any new innovation in the way it sells its products to consumers. Best Buy needs to understand how consumers are purchasing electronics and restructure how its employees are interacting with customers. Amazon is taking advantage of being an online retailer which means that Best Buy has to take advantage of their physical locations. Alternative Solutions One of the strategies Best Buy can implement is to offer a price match guarantee to the customers if they can find a lower price than Best Buy’s products then Best Buy will match the price. This strategy will attract more customers...
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...Best Buy is a household name among the electronics industry. In recent years they have seen a decline in profits and are forced to close fifty stores in an attempt to restructure. In an attempt to understand the competitive forces that Best Buy must overcome and determine their strategic position in the electronic marketplace I will utilize the Porter six forces framework. Porter’s Six Forces | | SupplierPower:MODERATE to HIGH * Panasonic * Sony * Samsung * Vizio | Threat of Substitution: LOW | Threat of Entry:MODERATE to HIGH * E-commerce * Amazon * QVC | IndustryRivalry: HIGH * Wal-Mart * Sears * Radio Shack * Hhgregg * Apple | | | BuyerPower: LOW | Complements: NONE | | Industry Rivalry Industry rivalry is the most significant force of Porter’s six forces; the electronics retail industry ranking very high in rivalry. There are several major companies that sell predominately electronic products and several specific niche markets; hhgregg, Sears, and Radio Shack are among the major players. Unfortunately companies like Wal-Mart and Target who are considered companies outside the electronics industry and are discount retailers prove to be significant competition in an already competitive market. The ability to shop elsewhere at little or no cost contributes to the high competition. Best Buy does not offer differentiated products; their products can be purchased at all electronic stores and retail chains like Wal-Mart. Because of the lack...
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...Pei Qiu 915123333 1 a) an after tax loss matrix. decision | Fire | No fire | 1. full insurance | $6000*0.85= $5100 | $6000*0.85= $5100 | 2. retention | $250000*0.85= 212500 | $0 | 3. loss control with full insurance | (4000+1000)*0.85= 4250 | (4000+1000)*0.85= 4250 | 4. loss control with retention | (25000+1000)*0.85= 213350 | 1000*0.85＝850 | 1 b) after tax expected losses for each option 1. 5100*2％＋5100*98％＝5100 2. 212500 *2%+ $0 *98%= 4250 3. 4250*1%+4250*99%= 4250 4. 213350*1％＋850*99％＝297 5 the risk manager wants to minimize expected loss as her decision rule, we choose the fourth method-loss control with retention since 2975<4250<5100. 1 c) total costs for each option is P *+worry value total cost for retention 4250 +4000= 8250 total cost for loss control with retention 2975+3000=5975 total cost for full insurance 5100 total cost for loss control with full insurance 4250 2. the loss matrix Alternatives\Future states | 0 | 10,000 | 70,000 | 100,000 | 1000,000 | Retention | 0 | 10,000 | 70,000 | 100,000 | 1000,000 | Partical insurance | 5,000 | 5,000 | 5,000 | 35,000 | 935,000 | Deductible insurace | 20,000 | 22,000 | 22,000 | 22,000 | 922,000 | Full insurance | 25000 | 25000 | 25000 | 25000 | 25000 | Loss in dollars | 0 | 10000 | 70000 | 100000 | 1000000 | P* | probability | 0.75 | 0.1 | 0.08 | 0.06 | 0.01 | | retention | 0*0.75=0...
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...Critical Analysis: Best Buy: Grasping at Straws By tuc70402 | November 2012 Zoom In Zoom Out Page 1 of 2 Critical Analysis: Best Buy: Grasping At Straws Best Buy Co., Inc. is an American public company that is a specialty retailer of consumer electronics in the United States, accounting for 19 percent of the market (1). Over the last fifteen years, Best Buy, like many retailers, is “competing with a perfect storm of disruptive technologies (2)”. It is hard to compete with those companies embraced with innovations, such as Apple and Amazon. Best Buy has lost $1.23 billion and 2.4% decreasing of revenue last year. In order to create a delighting customer atmosphere, Best Buy should focus on: engaging in innovations of e-commerce, training employees, and focusing on the target market. Engaging in innovations of e-commerce is the best way to differentiate with the competitors. The remaining advantages of brick-and-mortar have been systematically eroded. On the other hand, e-commerce has been increasingly popular, “through technical and business innovations that include embedded video on their sites, highly credible customer reviews and peer advice, free or subsidized overnight shipping, easy returns and extended warranties, and phone or on-page video chat for customer support”(2). If Best Buy can try to create a cheaper alternative, offering customers a faster, more convenient, and less-expensive online shopping atmosphere, perhaps Best Buy can have a dramatically...
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...BUSINESS ANALYTICS Business analytics (BA) is the practice of iterative, methodical exploration of an organization’s data with emphasis on statistical analysis. Business analytics is used by companies committed to data-driven decision making. BA is used to gain insights that inform business decisions and can be used to automate and optimize business processes. Data-driven companies treat their data as a corporate asset and leverage it for competitive advantage. Successful business analytics depends on data quality, skilled analysts who understand the technologies and the business and an organizational commitment to data-driven decision making. Examples of BA uses include: * Exploring data to find new patterns and relationships (data mining) * Explaining why a certain result occurred (statistical analysis, quantitative analysis) * Experimenting to test previous decisions (A/B testing, multivariate testing) * Forecasting future results (predictive modeling, predictive analytics) * FUNCTIONS OF A BUSINESS ANALYST At a high level, a Business Analyst acts as a liaison between business people who have business problems and technology people who know how to create automated solutions. A Business Analyst serves the mission-critical function of understanding specific business needs, determining and documenting accurate requirements from business units and presenting those requirements in a manner that is agreeable, measurable and flexible enough to meet project...
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...Critical Analysis and Writing 1 Critical Analysis: What What to do: • Analyse decisions made by business people • Understand their rationale (reasons for making that particular decision) • Provide recommendations about future actions 2 Critical Analysis: Why 1. Learn to solve complex problems 2. Deal with the unexpected 3. Persuading others Descriptive Analytical Critical Analysis Persuasive 3 Critical Analysis and Writing Key steps: 1. Understand the question and context 2. Conduct research and analyse the situation 3. Develop possible solutions and evaluate options 4. Recommend a course of action and argue for it What is the questions asking? What information are we missing? What does analysis suggest? What else do we know? What do we need to research? What is happening to the business? What are the possible options? Which one’s are better? State your recommendations Build an argument to support them 4 1. Understand the question and context What is the question actually asking? What is happening? When? Who is involved? What are the facts? Do we have additional information about the case? What is our deliverable? 5 Critical Analysis Example : Food wars You are a junior strategy analyst at Coles. Given the recent controversy around food discounting (Food wars), you have been asked by senior management to provide a recommendation as to whether Coles should continue the discounting or not. In your answer...
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...commercially and critically, and O. Henry was called the “Yankee Maupaussant.” Today the story is considered juvenilia and has not garnered much serious critical attention. “The Gift of the Magi” initially appeared in one of O. Henry's best-known collection of stories, The Four Million, which was published in 1906. Plot and Major Characters On Christmas Eve, a young married woman named Della has cut and sold her long, beautiful hair to earn the rest of the money she needs for her husband's Christmas present: a platinum chain for his treasured watch. When her husband, Jim, returns to their apartment, he is shocked to see her hair gone; he has sold his watch to buy her a pair of tortoise-shell combs for her long hair. Touched by his thoughtfulness, Della assures him that her hair will grow back and she gives him the watch chain. When he sees the gift, he lovingly tells her that he has sold his cherished watch to buy her the combs for her hair. The story concludes with an omniscient narrator praising the sacrifice and love of the young couple. Major Themes Critics have noted the irony of the young couple sacrificing their most treasured possessions—Della's hair and Jim's watch—in order to buy each other gifts related to those same possessions. Poverty is also a prominent theme, as Della saved her money for months to buy the platinum watch chain, but she still had to cut and sell her beautiful hair. The descriptions of the environs and the couple's clothing also underscore...
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...Critical Analysis Paper #1 The revenue of Best Buy declined by 2.4% since 2011. The company lost $1.23 billion in 2011, or $3.36 per share. This report will conduct a situation analysis of Best Buy, explain internal issues and the external environment, and summarize key issues that can explain the poor performance. One of the potential internal causes of revenue decrease for Best Buy is the fact that they have high dependence on vendors for a supply of their products. Vendors that supply Best Buy are located domestically and internationally. Around 60% of merchandise that Best Buy purchased was from its 20 largest suppliers in 2011. “The five major suppliers namely, Apple, Hawlett-Packard, Samsung, Sony and Toshiba represented 39% of total merchandise purchased by the company.” Due to this fact, Best Buy might have difficult time meeting the demand of customers because key vendors can fail to supply Best Buy with products. This issue can drive down Best Buy’s revenue and profitability (Global Data). Another possible internal cause of revenue decrease is the lack of expansion. Previously, Best Buy was trying to open “big box” stores overseas to expand its product as well as customer segments. However, revenue is declining because Best Buy had to close its “big box” stores in United Kingdom, China, and Turkey in 2011 because their strategy failed, which decreased brand awareness in these countries. Best Buy plans on opening 50 new but smaller localized stores in China and...
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...Running head: ASSIGNMENT # 1: MAKE OR BUY METHODS Assignment #:1 Make or Buy Methods by Inas Ellaham PMAN 641 – Project Procurement Management Professor Michael Hagerman University of Maryland University College June 12, 2011 Table of Contents Introduction 3 “Make” or “Buy” Analysis 4 Conclusion 7 References 9 Assignment #1: Make or Buy Methods Introduction According to the PMBOK (2008, p. 321), “a make-or-buy” analysis is a general management technique used to determine whether particular work can best be accomplished by the project team or must be purchased from outside sources.” A number of factors could affect the make-or-buy decisions such as budget, scope, or time constraints; therefore, when making a decision project managers weigh the advantages and disadvantages of make versus buy options and their impacts on the project costs and project master plan date. This paper examines and assesses the “Make or Buy” methods by analyzing it because project managers rely on it when deciding as to whether to “buy or make”. The first section of the research paper will present a brief description of these methods, followed by an analysis, which will include the advantages and disadvantages of make versus buy by providing reasons and examples against each one of these 2 options. Finally, based on the analysis and the findings demonstrated and revealed in this paper, I will highlight in my conclusion key limitations and constraints...
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...The Accuracy of Fingerprint Analysis Alejandro Ortiz III Strayer University English 215 Dr. Jeffrey Ebberson January 16, 2013 Abstract The main objective of this paper is to show how accurate fingerprint analysis really is. What are the standards that are being used? Have scientific studies been conducted to come up with a universal standard for every lab to use. Keywords: Introduction Best Buy is an electronics retailer based out of Richfield, Minnesota specializing in consumer electronics. The company’s products include in home-office equipment, entertainment software, appliances and mobile products as well as support for all their products. Best Buy has a global presence having operations in Europe, Mexico, China and Turkey (Datamonitor, 2011). The firm has successfully differentiated itself from other firms within this market by using a customer-centric approach having a focus on customer service. This approach has allowed Best Buy to take advantage of the high growth in China as well as sustain growth in the more mature markets in the United States and Europe (Datamonitor, 2011). How Best Buy differentiates itself Best Buy utilizes an overall customer-centric marketing approach using local demographics to tailor products and services. This creates customer loyalty and attracts more affluent customers that need advice as well as setup which cannot be offered by a discount online site. Best Buy has a technically savvy sales staff that can suggest products and services...
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...Key Issues 1. Distribution When best buy enters the Australian Market, the location and size of their stores will be critical to their success. This is how they will access their target market. It is also critical that Best Buy implements a strong supply chain and inventory control system. The Distribution is just as important from the manufacturer to the retail location, as is the retail location to the consumer distribution channel. 2. Implementing an online store as a substitute to their retail locations 3. Store Design The design and layout of the store will be a description of the Best Buy Brand. As this brand is new to the Australian market, the design of the store will be the most effective marketing tool that Best Buy has at their disposal. 4. Creating strategic alliances As it is a new business to Australia, the choice of whom, the business aligns themselves with, will determine how the Australian consumer perceives them. Target Market The target market strategy that is being recommended for Best Buy to use when entering the Australian market place is a broad-spectrum target market. The target market can be described as singles and families aged between 20 and 55 years old. They are the middle-class, living primarily in urban areas. This group is moderately technologically savvy and they want specialized electrical product knowledge and service at a competitive price. They also want a wide range of products all in one location. This group’s path...
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...MEMORANDUM To: James Harding From: Subject: Analysis of Best Buy’s financial statements of year ending February 2014 Date: 04/12/2015 Introduction: This memorandum is a clear and detailed analysis of Best Buy’s financial statements of year ending February 2014. I have analyzed the statements in the following perspectives: revenues and expenses, assets and liabilities, financial flexibilities, ownership structure, estimations and faithful representations. Considering overall conditions I have analyzed, I recommend to buy the stock of Best Buy for a long time and buy a 10 year long bonds. Revenues and Expenses Analysis Revenues Best Buy Co., Inc., as a worldwide retailer specializing in selling technology products, generates its revenues mainly by accepting online orders and setting retail stores in many countries, including United States, Canada, China and Mexico (Merchandise and Services, 5). Best Buy also provides technological services in some areas, as another way to generate revenues (Description of Business, 4). Revenue is recognized from fixed sales price of merchandise and services, extended warranties, gift cards and credit financing (Revenue Recognition, 67). All of these mentioned resources lead to the total after-tax revenue, which is listed in its income statement. The income statement is comprised of three consecutive years revenue, making it easy to be compared by outsider investors. After analyzing the revenue, it is easy to find that the...
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...2012 Spend Analysis I. Introduction The current condition of the economy in the United States (US) and increased economic pressures has reinvigorated many companies to rethink their purchasing practices. One of the best ways for a company to evaluate its spending patterns is through a spend analysis. “A spend analysis is the process of determining what is being spent, with whom and for what” (Hingorani, 2010, p. 58). In order to accomplish this task companies must use software programs to import and aggregate data from multiple systems. This paper will explore several components of the spend analysis process including the risk of using software programs alone to analyze spending patterns; how Lean Six Sigma processes might be useful when developing a spend analysis process, and why it is important to involve multiple functional areas, most notably finance. II. Relying on Software Alone While software programs offer a great platform for organizing data they do not provide a method of cleansing data. What I mean is, spend data can be housed in many different databases, and trying to consolidate the data correctly can prove to be very difficult. Ever heard of the saying “garbage in, garbage out”? That is exactly what you might get relying solely on software programs to complete your spend analysis. This is where analytical skills and critical thinking become very important when setting up a spend analysis process. First, you must determine...
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...Missouri’s Civil War Case Analysis Missouri’s Civil War examines the dynamics of intergroup conflict stemming from scare resources within the university. Provost Ronald F. Bunn is ultimately designated with the responsibility of “preserv[ing] and enhance[ing] the quality of the university in a time of severely limited resources.” Initially functional conflict and integrative bargaining are possible approaches to the requirements necessary to cut budgets at the university. Bunn’s leadership however neglects to take focus of the issue and ultimately fail to effectively influence and control the behaviors of those within the overall structure of the institution derailing the decision-making process. In addition to examining examples where Bunn’s leadership moves away from functional conflict and integrative bargaining, this analysis also reviews other critical choices the Provost could have made to gain buy-in and commitment from all members of the university in this important decision. The sources of conflict in this case can be found in examining the initial stage of the five-stage conflict process. This first stage, potential opposition or incompatibility, identifies the presence of conditions that create opportunities for conflicts to arise. The three categories of this first stage, communication, structure, and personal variables, all factor into the intergroup conflict stemming from the decisions being made at the University of Missouri. First, the communication between...
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...| | | | | | | | | | | | | | | | |American Chemical Corporation | | | | | | | | | | | | | | | | | ...
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