Strategic and Operational Plan: Best Buy

In this essay, the author

• Explains that strategic planning directs every movement in a business and is very essential to business performance. the strategic plan and operational plan are extracted from best buy form 10k to better clarify the current situation and future direction.
• Recommends developing new operating metrics to measure best buy's performance to achieve its strategic plan and financial plan.
• Explains that best buy's operating cost is higher than most of its competitors like amazon because it has storage cost as a store retailer and it provides after-sale service.

• Explains that strategic planning directs every movement in a business and is very essential to business performance. the strategic plan and operational plan are extracted from best buy form 10k to better clarify the current situation and future direction.
• Recommends developing new operating metrics to measure best buy's performance to achieve its strategic plan and financial plan.
• Explains that best buy's operating cost is higher than most of its competitors like amazon because it has storage cost as a store retailer and it provides after-sale service.
• Opines that best buy should measure the number of new customers it attracted each month. with the changing trend from traditional shopping to online shopping, it has become harder to retain customers.
• Recommends that instead of engaging in price war to beat down competitors, best buy should enhance the perceived value of customer to its service so that a slightly higher price would not affect them to choose best
• Explains that the operating metric is suggested for identifying the drivers of revenue, cost, and profit from the business model point of view, while the financial analysis is of the same importance.
• Recommends internal project investment to align with the renew blue strategy that aims to better deliver the customers’ value.
• Opines that best buy needs to re-consider its business plan to maintain its leading status. the renew blue strategy may put it back on track, but new operating metrics are necessary to better measure the progress of on-going business.
• Explains armajani, b., "the wrong - and right- way to build a strategic plan", government finance review, vol. 28, no.
• Explains that best buy, one of the biggest consumer electronics retailers in the world, provides products from smartphone, computers, and large electronic appliances. however, it has been facing internal and external challenges in recent years.
• Explains best buy's strategic plan reviews the mission and vision of a company. the renew blue strategy focuses on reviving and igniting customer experience, adding new blood into the company, rising return of existing capital and continuing its leadership in the market
• Explains best buy's 'renew blue road map' for 2014-2015 fiscal year that focuses on improving operational performance, building foundational capabilities, and making full use of unique assets to create significant differentiation for customers and vendors.
• Explains that each strategic plan has assumptions on every core factor that would affect the company and realistic assumptions are fundamental to start off a real projection
• Explains that best buy may consider sourcing from retained earning or borrowing long-term debt. the company's current liabilities have decreased from $10810 million to $7430 million and the current ratio has increased from 1.1 to 1.4.
• Recommends best buy to keep buy-backing stock but in a smaller scale, as the stock price is climbing up after the reform of the renew blue strategy.
• Cites birkner, l.r. & birkenner r.k. 1998, "performance metrics: linking them to the business", occupational hazards.