Strategic and Operational Plan: Best Buy

comparative Essay
1715 words
1715 words

Best Buy, one of the biggest consumer electronics retailers in the world, provides products from smartphone, computers to large electronic appliances. It aims at offering a large variety of products with outstanding customer service at a comparably economical price. Yet, it has been facing internal and external challenges in the recent years. Bottom line and the share price are slightly catching up after a fall in 2013 but still barely satisfying the shareholders and customers are changing their purchasing habits which may threaten its future. In the following, the strategic and operational plan taken by Best Buy would be indicated to have a clearer picture of current situation. Then the assumption of Best Buy made will be discussed and necessary new assumption would be elaborated. After that, new operating metrics are suggested. At the end, three financial management decisions and recommendation are provided as well. Strategic and operational plan Strategic planning directs every movement in a business and is very essential to business performance (London 2002, pp.26-33). The strategic plan and operational plan are extracted from Best Buy Form 10K to better clarify the current situation and future direction of Best Buy. Strategic plan Strategic plan reviews the mission and vision of a company (Armajani 2012). For Best Buy, it aims at providing customers the latest devices and services at an attractive price at any time via multi-channel. And apart from just selling, it provides technical services and warranty of products in order to further improve customers’ experience to which the company highly valued (Best Buy 2014, p.25). With the performance fell beyond expectation, Best Buy announced The Renew Blue strategy in 2013 th... ... middle of paper ... ...67. Schneider, B. 1991, "Service quality and profits: can you have your cake and eat it too?", Human Resource Planning, no.14, pp.151-157. Seitz, P. 2011, Best Buy Results Fall Short; Price Competition Takes Toll Amazon Price-Check Specials The consumer electronics retailer said running twice as hard just to stay in place, Los Angeles. Seitz, P. 2013, Best Buy Set For Price Battle This Holiday That Will Hurt Profit Margins 'In this to win,' says CEO on aggressive competition with Amazon, Wal-Mart, Los Angeles. Seitz, P. 2014, Best Buy Turnaround At Issue After 'Shocking' Holiday Miss CEO: Firm 'Outcompeted' Retailer slashed prices vs., Wal-Mart; aims to boost online sales, Los Angeles. Williams, P. & Naumann, E. 2011, "Customer satisfaction and business performance: a firm-level analysis", The Journal of Services Marketing, vol. 25, no. 1, pp. 20-32.

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.
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