>Discussion 16All original threads should be at least 250 words. This parameter helps to promote writing that is thorough yet concise enough to permit other students to read all the postings. The thoughts and opinions expressed in your thread need to be substantiated by research and literature (from the textbook or outside sources). All references should be in correct APA style. While this is a formal discussion environment you are allowed to use the first person perspective in all your posts since you will be expressing your personal opinions. All original threads should: Bring clarity to the issues being discussed. Raise new and novel (yet relevant) points. Relate issues to personal experience. Rationally defend your stated position. Best Buy … The Best House on a Bad Block The retail electronics industry had been contracting and fragmenting for a number of years and brick-and-mortar retailers were ever more tightly squeezed by online providers. All this led Best Buy’s three closest store-based competitors to go out of business. Having fewer competitors might seem a good thing but it just reinforced the shrinking nature of the industry. As such Best Buy needed to analyze its position in the retail electronics industry. This activity is important because in order to deal effectively with change managers must consider all the external and internal forces of change. The goal of this activity is to understand the various forces of change in order to manage change more effectively. Read the case about the fragmenting retail electronics industry. Then applying the 3-step problem-solving approach answer the questions that follow. The title of this case is the way some analysts characterized Best Buy’s position in the retail electronics industry—the best big-box retailer in a shrinking business. Hubert Joly Best Buy’s CEO seemed to agree when he said the following just after taking the job: “This is the most dysfunctional organization I’ve ever seen… But this is good news because this is self-inflicted and so this is something we can correct.”1 The company was indeed in dire straits. The key performance metrics for most retailers —same-store sales and profit margins—had been declining over a period of time.2 Causes of Pain The electronics industry had been contracting and fragmenting for a number of years and brick-and-mortar retailers were ever more tightly squeezed by online providers. Amazon and Walmart in particular were taking an increasing share of business from everyone in the electronics market. All this led Best Buy’s three closest store-based competitors to go out of business—Circuit City CompUSA and RadioShack. Having fewer competitors might be a good thing but it just reinforced the shrinking nature of the industry.3 Best Buy also confronted internal forces that were driving change. The previous CEO Brian Dunn was forced to resign after having an inappropriate relationship with an employee and founder Richard Schulze had made an unsolicited attempt to buy the company and take it private. Leadership was in disarray. The board of directors had allowed ineffective if not unethical conduct to continue from the executive level to the store level further eroding Best Buy’s performance and reputation.4 What remained in 2012 was a company with lower revenues uninspiring product displays dirty restrooms and lapsed maintenance because it had run low on cash and management had focused its attention elsewhere. However the company still paid for private jets trips to the World Economic Forum in Davos Switzerland sponsorship of NASCAR and the Super Bowl and color printers at headquarters.5 Customers Employees and Vendors Customer preferences for products price and location had changed and Best Buy no longer measured up. Some customers had poor customer service experiences with the company and prices were not competitive. The online store was unreliable with inaccurate stock information and online orders took days or even weeks to arrive because they shipped from centralized distribution centers even if a nearby store had the needed item in stock. Many shoppers saw no real value in actually purchasing from the store. Instead they went to learn about and view the product they wanted and returned home to purchase it online from another source (often Amazon).6 When Sharon McCollam the new CFO hired by Joly attended her first staff meeting the room was half-empty. Many of her corporate-based direct reports worked from home and on any given day 20 to 35 percent of corporate employees were absent. Decision making was bureaucratic and slowed by multiple layers of management. Also notable was the amount of e-mail clutter received by store managers; they were barraged with reminders of the latest program from corporate. Store-level employees were confused about which activities they should prioritize: Was it getting more credit card sign-ups selling extended-service policies or reminding customers about the Geek Squad (Best Buy’s in-home tech experts)? Shari Ballard the US retail president wanted every store employee to know and focus on revenue per hour. And yet despite all the data the company possessed it didn’t know what distinguished top-performing employees and top-performing stores from the rest.7 Last but not least Best Buy had less-than-productive relationships with manufacturers and vendors. Apple for instance had its own retail stores and also sold its products online. However it also wanted other retailers including Best Buy to sell Apple products. But at the time Joly took over the relationship between the two companies was not nearly as strong as it could be. The same could be said of Samsung. It’s one of the world’s largest electronics manufacturers yet by its own estimate Best Buy was not meeting its potential as a retail channel for Samsung’s products. Employees did not have sufficient knowledge about different suppliers’ products the products were not well distinguished from one another and in-store displays and marketing were insufficient. Assume you are Hubert Joly and have just taken the CEO job. Use the 3-Step Problem-Solving Approach to identify the problems and their causes and formulate the actions you’d take. Apply the 3-Step Problem-Solving Approach to OB Step 1: Define the problem. Step 2: Identify causes of the problem by using material from this chapter summarized in the Organizing Framework shown in Figure 16.10. Causes will appear in either the Inputs box or the Processes box. Step 3: Make your recommendations for solving the problem. Consider whether you want to resolve it solve it or dissolve it (see Section 1.5). Which recommendation is desirable and feasible? Footnotes 1. J. Wieczner “Best Buy CEO on How to Lead a Corporate Turnaround (Without Making Employees Hate You)” Fortune October 29 2015 http://fortune.com/2015/10/29/best-buy-ceo-turnaround-tips/. 2. Ibid. 3. J. Wieczner “Meet the Women Who Saved Best Buy” Fortune October 25 2015 http://fortune.com/2015/10/25/best-buy-turnaround/. 4. J. Wieczner “Best Buy CEO on How to Lead a Corporate Turnaround (Without Making Employees Hate You)” Fortune October 29 2015 http://fortune.com/2015/10/29/best-buy-ceo-turnaround-tips/. 5. J. Wieczner “Meet the Women Who Saved Best Buy” Fortune October 25 2015 http://fortune.com/2015/10/25/best-buy-turnaround/. 6. Ibid. 7. Ibid.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency

Order your paper today and save 30% with the discount code HAPPY

X
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 323 412 5597

Feel free to ask questions, clarifications, or discounts available when placing an order.