Best Buy is an American company that owns a large chain of stores of consumer electronics and related products. It is important to mention that Best Buy is included in the Fortune 1000, and is the largest retailer of consumer electronics of the USA and Canada (about 17% of the market). Originally called Sound of Music, Best Buy changed the name to a more modern one in 1983. The company has 1,150 stores in the U.S., Canada, and China, and planning to increase its number to 1,800 (including 1,400 stores in the United States).
Best Buy sells consumer appliances, as well as a number of other products, including computers, software, video games, DVDs, mobile phones and household appliances (refrigerators, washing machines, dryers).
Business Week magazine awarded the 43rd place to Best Buy on the list of the most innovative companies in the world for model development of chain stores. Best Buy follows the concept of orientation to the buyer, so often shops are aimed at a specific target audience, for example, parents of schoolchildren or computer enthusiasts. Best Buy has a number of own brands and electronics brands, including Insignia, Geek Squad, Dynex and others.
The current essay analyzes the Best Buy Company. The main idea of the essay is to present evidence that the company is leading its industry, and it has the potential to become more successful than it is nowadays. Besides, it contains a suggestion for the company’s top managers in what ways to develop. The conclusion of the paper contains personal opinion of whether it is worth working for the company or not.
Best Buy is a company that focuses its attention on e-commerce. Nowadays, e-commerce is rather popular and many people prefer to shop online, rather than go out to a store. Such planning strategy is future-oriented: managers of the company know how to attract consumers and become one of the best in the market.
The company is striving to take the leading place among its competitors. Therefore, the company is striving to make the lives of its customers simpler and happier. Moreover, the company utilizes a traditional planning methodology. First, the company’s managers identified their consumers and the main target population. Second, they have developed a strategy of how to achieve the aim. Then the company started its work: the online stores were opened together with retail stores and call centers. The last step is only to control the process. The customers of the company are mainly young people. Goods in the stores are not as expensive as at their competitors’. The main competitors of the company are Apple and Amazon.com. These stores are rather popular and some people tend to trust them more. Besides, the above-mentioned companies are widely known all over the world as Best Buy. Hence, nowadays, the main strategy of the company is to become an internationally known company and stay at the top of the market.
Nowadays, Hubert Jolly is the CEO of the company. The structure of the company is presented on the chart:
The board of directors together with shareholders makes significant decisions. The company’s managers participate as well. However, they make decisions on lower levels, for example, in their departments. The decision-making process is the top-down process. The board of directors and shareholders, as well as managers, make decisions within their departments. The employees should only perform it. It is noticeable that top managers and directors are elected every year. Besides, there is a practice in the company that the board of directors should consist of experienced managers and newcomers, those who have a fresh view. In my opinion, such a scheme is not perfect and it should be changed. The company should use the bottom-up of the scheme. This model means that ordinary employees make decisions and give advice to the heads of departments, who will proceed them to the board of directors and top managers. This scheme is better since employees know better what they need. Besides, this is the opportunity for them to feel as managers. Such a scheme has more motivation (psychological motivation) than the one that is used by Best Buy nowadays.
Although the top-down scheme is used while managing the company, the employees are willing to work for Best Buy. The company’s employees are motivated to work better. As has been already mentioned, the board of directors consists of experienced managers and newcomers. This is one of the examples of the motivating process. Every employee is motivated to work better to become a top manager. Top managers who succeeded in their work can be called “heroes” of the company. They are the ones who showed that a person can succeed greatly if he/ she tries hard. Besides, the employees of the company have material motivation: they have large discounts when purchasing at Best Buy, as well as time off programs and tuition assistance. The company’s managers are interested in a good performance. Customers are satisfied only when they are well served. In this case, Best Buy is one of the best companies in the market. The communication between employees is of high quality. The company has a communicational network, so employees have an opportunity to communicate with each other when needed.
Best Buy focuses on e-commerce. Hence, one may state that technologies play a significant role in the company’s strategy and management process. Besides, information systems play a significant role in the company’s development as well. The point is that the company has chosen the strategy of working only online. Consequently, the information systems are rather important for its success. The company needs informational systems because they help it to develop and achieve the main target: improve customers’ lives and make the company the leading one in the market.
The United States of America is a multinational country. Moreover, Best Buy is a company that works in the international market in many countries. Hence, there is no wonder that the company faced ethical problems after it had been established. According to some interviews of employees of Best Buy, one sees that nowadays there are no ethical problems in the company. When the company was established, every person was equally valued: top managers and employees may talk as equals. Nowadays, every employee of the company is valued as if the one were a top manager or the CEO. In my opinion, such an attitude is rather good, because the employees should feel respected to perform their work much better.
Some people tend to make their choice rather fast and some need more time. As for me, I would not like to work for Best Buy Company. Obviously, there are many benefits to work for the company. The salary is higher, compared to other companies in the industry. Besides, employees receive many benefits, such as insurance, discounts, and assistance. Many employees state that they feel comfortable at work. Moreover, most of them state that they are friends with co-workers. However, it is not for me. There are such jobs that a person feels for. Once, someone said that a person should choose a dream job and there will be no need to work until the rest of one’s life. In my opinion, a job at Best Buy is not fitting for me. I would not like to work for the company, because this kind of business is not the one I am fond of. However, there is an opportunity to work for the company temporarily and gain some experience. Nowadays, there are several opportunities to work for the company: at the logistic department, retail department and the so-called ‘corporate careers’. If I would work for Best Buy, I would like to work for the logistic department. I think that it is rather interesting to work there. The logistics department is one of the most significant departments, which works for customers. The employees of this department should do their best to deliver packages to customers as soon as possible. In my opinion, Best Buy is one of the best companies to start one’s career as a manager.
This report was aimed at presenting an analysis of Best Buy. Best Buy is an American company that focuses on e-commerce. In the past years, e-commerce has become one of the main means of trade. People choose nowadays to purchase over the Internet and wait for the goods to be delivered. The report showed that Best Buy is one of the most perspective companies in its industry. On the other hand, there are several ways of developing. In my opinion, the company should become international. Nowadays, its goods are available only in some European countries, in the United States of America and in some Asian countries. On the contrary, its competitors, such as Amazon.com and Apple are available all over the world, where there is an Internet. Besides, I do not think that Best Buy is the company to work for the entire life; however, this company may become a good start for a manager beginner.
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