Introduction and background
Best Buy is considered to be the largest US technology and entertainment retailer. Company’s vision statement is “Making Life Fun & Easy” (Walden, 2006, p. 34). The company has managed to achieve this goal and make everything possible to satisfy its clients.
We will write a custom Report on Best Buy’s Strategies and Performance specifically for you
301 certified writers online
The company has come through a number of conditions which have led it to where it is at the moment. The company was established in 1966 as a single music store and due to the successful practices, like leveraging competencies, implementing low prices, building “a hybrid strategy of low end and top end product offerings” (Why Best Buy has always had the best strategy, 2008, p. 22), introducing new digital products, blending of “building new skills to keep pace with technological change and acquiring new stores in new territories, along with leveraging retailing skills” (Why Best Buy has always had the best strategy, 2008, p. 22), and forcing current customer-centered strategy, it has become a leader at the American market among the entertainment retailers.
Customer-Centricity and the Management Ideas for Achieving Set Goals
Therefore, the company has put a goal, to become a customer-centered company by means of achieving the following human resource philosophies, (1) recognizing employees’ talents, (2) developing HR capabilities for employees’ personalization, (3) focusing on strategic differentiation, and (4) applying leadership in the business, and directing those at achieving a set aim (Walden, 2006, p. 35). To achieve the set goal, it is important to implement managerial practices and use adequate decisions.
Management Science Theory
The company should implement management science theory in order to make decisions maximum effective and profitable. The use of quantitative techniques in making decisions helps mangers implement necessary tools which perfectly fit the situation (Jones & George, 2011, p. 62). Leverage and building along with Hamel and Prahalad matrix helps the company achieve the goals it has. Living in the modern world, management should use all the possible sources of decision making.
Programmed and Non-Programmed Decisions
Best Buy should use both programmed decision making and non-programmed ones. The main idea of programmed decision making is to use the practices and strategies which were successful for other companies and can be implemented by Best Buy. Non-programmed decisions should also be covered as these decisions are unique and directed only at the specifics of the company functioning (Jones & George, 2011, p. 214).
Planning and Strategy
The contemporary world is changing fast, however, it is impossible to implement desired customer-centered approach without careful planning and constant revision of those strategies. The main idea of planning is identification and selection of appropriate goal, while strategy is a “cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals” (Jones & George, 2011, p. 247). Best Buy managers should create a plan and constantly revise it with the purpose to understand which goals have already been achieved and which new and more innovative strategies may be used for meeting company needs. SWOT analysis is one of the best techniques to revising company needs.
Management science theory in making decisions, programmed and non-programmed decision making and planning and strategies reconsideration may improve Best Buy’s performance at the market in case they are referred to in a proper way. To achieve a desired customer-centricity, Best Buy should use innovative developments in management.
Jones, G. R., & George, J. M. (2011). Contemporary Management. New York: McGraw-Hill Higher Education. Walden, J. (2006). Best Buy: Customer-Centric Innovation. Human Resource Planning, 29(3), 34-36.
Why Best Buy has always had the best strategy: Two new roads in search of continuous renewal. (2008). Strategic Direction, 24(4), 21 – 23.