- Business policy defines the roles and responsibility of top-level management, which influence organizational decision making process and organizational success
- The presentation will evaluate the business policies of Best Buy Company
- Best Buy is an American multinational consumer electronics corporation
- The presentation will present the Minimum Segment Success Factors, VIRO Analysis, Sustainability Issues, Stakeholder Analysis to be implemented in the organization
Best Buy Industry Segment Analysis
- The most attractive segment is the high quality segment and high efficiency segment
- The least attractive segment is the followed by low quality and high price (Wells & Ellsworth, 2017)
- The potential entrants in the attractive segment with high quality
Best Buy: High Quality Segment
Minimum Segment Success Factors
- Technology Related: Use of most advanced technology in the electronic products
- Distribution Related: Use multichannel distribution strategy for enhancing sales volume (Wells & Ellsworth, 2017)
- Marketing Related: Training to the employees for better store experience of the customers
Best Buy: High Quality Segment(Continued)
Minimum Success Factors
- Skills Related: Use best sales experts for effective store sales facility
- Organizational Capability: Work with vendors for innovation and driven service
- Geographic: More focus in international business success
- Service Related: More informative interaction with the customers within the physical stores (Wells & Ellsworth, 2017)
VIRO Analysis (Continued) Wide Distribution Network
- Maximize multichannel Product and Service Delivery (Wells & Ellsworth, 2017)
- Customer convenience through smooth delivery of product
- It will lead to sustained competitive advantage over the rivals
Leading Edge Technology
- Early adopters are coming to Best Buy
- Best Buy could access to new and innovative technology
- However, such technology is not inimitable and it can create only competitive parity
Innovation
- Launch more innovative and value driven electronic products
- Customers can avail the innovative electronic products on both the website and physical store of Best Buy
- Innovation can foster sustained competitive advantage over rivals
Unique Vendor Groups
- Investment made by vendor partners in the store will increase stock of variety of products
- Vendor support will help in collecting unique electronic products (Wells & Ellsworth, 2017)
- Unique vendor groups are directly responsible for fostering business innovation, which can lead to sustained competitive advantage
International Growth
- More focus will be given on international growth of business
- However, international growth is not inimitable and not rare, which can lead create only temporary advantage over rivals
Strong Online Sales
- Best Buy will give strong focus on enhancing online sales over e-Commerce companies
- However, online sale is not inimitable and not rare, which can foster only temporary advantage over rivals
Competitive Pricing
- Competitive pricing will keep the price of consumer electronic products low
- Best Buy will clear the misconception of the customers regarding the competitive pricing
- Such pricing is not rare in the market, which can only lead to competitive parity
Highly Skilled Store Staffs
- Best Buy will employ highly skilled employees in the stores for more informative interaction with the customers
- Such skilled employees are not inimitable and not rare in the market, which can only lead to temporary competitive advantage
Increased Stock in Stores
- Best Buy will increase the stock of electronic products in the physical stores for increasing store sales volume (Wells & Ellsworth, 2017)
- It can lead to sustained competitive advantage over the retail rivals
Sustainability Issues
- E-Waste: The E-wastes of the consumer electronic products can have huge affect on the air, soil and water component of environment
- Energy Consumption: High energy consumption by electronic products hamper the quality of environment
- Exposure to Hazardous Chemical: Exposure of the employees to hazardous chemical can be risky for their health
- Hazardous materials: Hazardous materials used in the consumer products can have high impact on the environment
Measures for Sustainability Issues
- Recycling: Best Buy has already taken initiatives of recycling for minimizing the amount of e-Waste (Wells & Ellsworth, 2017)
- Energy Efficiency: The organization will source energy efficient consumer electronics for environmental sustainability
Measures for Sustainability Issues (Continued
- Eco-Leveling of Products: The organization will start eco-leveling of consumer electronics for ensuring environment friendly materials
- Regulations: The organization will be adhered with strict regulations for protecting the employees from hazardous chemicals of electronic products
Important Stakeholders: Stakeholder Analysis
- Company Owner: Funds and Frame business Policy
- Manager: Manage business operation for achieving business success
- Employees: Input their effort towards achieving organizational success
Customers: Ultimate target to sale products (Wells & Ellsworth, 2017
- Suppliers: Source unique consumer electronics materials
- Government Authorities: Frame legal policies for business
- Communities: Must consider communities’ support
- Media: Spread positive image in the market
Conclusion
- Best Buy is considered to be in most attractive segment of retail industry having high quality and affordable price
- The organization will focus on high innovation and value driven business
- Best Buy has already concentrated on recycling process for minimizing the issues of sustainability
- The important stakeholders of the organization should be managed closely for keeping up organizational success
Reference
Wells, J., & Ellsworth, G. (2017). Reinventing Best Buy. Harvard Business School. Retrieved 4 February 2018, from
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