A company that experiences each of the market structures under one roof is Best Buy. While the company as a whole operates as a Oligopoly the various departments and items it offers may fall under different market structures. Best Buy has competitors such as Fry’s Electronics, HH Gregg, and Wal-Mart. The prices established for the technology offered is often time similar between each competitor. The amount of capital needed to open such as store is quite large. Expertise is needed to ensure it is obtaining good products to offer customers at a good price. The rate in which the technology changes is also quite rapid. It must be careful not to purchase too much of a product it cannot sell out of before the next new thing becomes available. Within the big, box store it has several different market structures. For example, a monopolistic competition exists among the sale of accessories for the various electronics such as cables, cases, and blank media. The offerings are large, the cost is low to get into the market, and the profits are high for the supplier and the retailer. At one time the service Geek Squad would have been viewed as a Monopoly. There were no other retail stores that offered such a service. Recently the market has changed and it is more of a oligopoly. When it originally launched the price of the services offered were very high, and customers that lacked knowledge had no other place to go. Media sold at Best Buy would be considered a perfect competition market. There is very little profit made from the sale of the product. Several competitors exist from specialty music stores like Virgin or Tower Records to mega, superstores like Wal-Mart. The pricing of products in the media department will vary based on various factors such as popularity and pricing at competing stores. Managers of the store spend a…
Within this paper, an evaluation of the organizing function, in relation to technology and human resources, will show how efficient and effective Wal-Mart’s operational resources are. This paper will go on to demonstrate how Wal-Mart Corporation utilizes their upper management and the decisions that are made.…
Best Buy Company is one of the leading companies in US and Canada dealing with the retailer of the consumer electronics. The company has over 400 stores worldwide offering a wide variety of products worldwide , among the company’s major products include the following ; mobile phones, gaming systems appliances, computers , televisions among other components and accessories. However, the company has adopted a variety of strategies that sees it enter successfully into the competitive markets; for instance, it has developed a culture that promotes excellence customer services, minimized or no commission on some products, employing highly experienced and skilled staffs . These have seen the Best Buy company expand to many successful branches and increased production over some a good period of time.…
When Best Buy first opened it was an event that an electronics store could hold such a variety of products, have knowledgeable employees, and offer competitive prices at the same time. Although in 2012 it was reported that revenues for Best Buy increased, the company still fell victim to the problems of having a decrease in net income and operating cash flow. “The company reported revenues of (U.S. Dollars) USD 50,705.00 million during the fiscal year ended March 2012, an increase of 1.93% over 2011. The operating profit of the company was USD 1,085.00 million during the fiscal year 2012, a decrease of 54.30% from 2011. The net loss of the company was USD 1,231.00 million during the fiscal year 2012, as against a net profit of USD 1,277.00 million during 2011 (Strategic Analysis 1).” It is obvious by these numbers that Best Buy, a company that has been historically successful, has been running into some recent troubles. In this report I will identify all of the potential reasons for Best Buy’s recent poor performance, as well as offer my opinion for the primary reasons for Best Buy’s recent sub-par performance.…
Planning, organizing, leading, and controlling—the four management functions—are seen in a variety of business environments. Different factors can have an impact on these four management functions. The factors are: globalization; technology; innovation; diversity; and ethics. These factors as they apply to Wal-Mart, one of the leading retail stores in the world, will be examined in this paper.…
The global market continues to change the focus of the goals and objectives set within the structure of organizations. The structure of an organization must be built on awareness of the quality and performance of competing business in order for the company to have long term success (Birr, 2008). The rise of the business’ success is depends on the goals being pursued and implementation of methods developed to achieve those goals.…
In order to regain some of its lost market share, the company made some rapid and unbalanced changes to its architecture. However when making changes to one area of the company, it failed to coordinate the changes to other areas. In 1984, the company restructured and changed its decision making process to become more decentralized. As a result, 17 new departments were created. These new business units had profit-and-loss responsibilities, and their corresponding managers were given the responsibility to decide on new products, pricing, and other important policies (Brickley, 2009, p. 359). The result of this major restructuring had very little impact of the company’s plan to regain market share and profits. In reaction to this lack of impact, the company implemented the Management Annual…
Organizational structure plays a key role for a businesses structure and organizational role among employees. Walmart is one company…
Examines the functions and processes within a business enterprise and key factors affecting productivity. Reviews the dynamics of the business operating environment both internal and external, factors affecting competition, and considerations for global operations. Provides a conceptual base for managers to assess and enhance strategic performance in a business organization through the integration of the core business functions, effective resource management, and sound leadership.…
The overall analysis of Bets Buy's new strategy focusing on "customer-centricity" is leading the company in the right direction to grow competitively and profitably. Best Buy's 2004 Financial Results (B: 3.0) demonstrate that since its implementation, profit margins have grown 2.3% from the prior year. However, there are intangible obstacles that hinder the execution of the strategy in the long-term, and give opportunity to growing competitors such as Wal-mart and Dell (A: 4.0) to replace Best Buy as a market leader in consumer electronics.…
Best Buy was founded in 1966 by the current CEO Richard M. "Dick" Schulze. Based out of Eden Prairie, Minnesota the corporation currently has 446 stores and earned over 83 million in total revenue last year. Best Buy carries a wide variety of products consisting of Major Appliances, video and audio equipment, computers, software, music, and wireless technology. When analyzing this corporation it is important to pay close attention to its current and future services and products, any problems with the corporation, the future direction Best Buy is headed, what can be done for the corporation, and what it can do for you as a consumer or employee.…
In every organization and company, each employee share their own experiences, values, and beliefs to the organization or company. All the experiences, values, and beliefs combined formulate the organizational culture of the company. A poorly organized company can lead to a company’s demise. A company that has a vigorous organizational structure ensures that all employees and management all work well together. Throughout this paper, I will be discussing roles in leadership and management. Also, how the four functions of management support and maintain a healthy organizational structure.…
The three companies that I choose for this project was Burger King, Barnes & Noble, and McDonalds. I observed how the employees do their tasks. I will discuss the main kinds of OMM costs companies have and how does this affect their OMM operations. Also will be discussing how do companies design their operating systems to give them a competitive advantage. I will identify which five main components of operations and materials management costs and the methods companies use to reduce them.…
When choosing to departmentalize your company, we would highly recommend that you do so in the terms of Product and Function. This will create an effective way for each…
an analytic framework for understanding the overall success of the organization. In particular, this research examines the organizational behavior of General Electric and how this behavior has contributed to its overwhelming success in recent years. Through a careful consideration of the current trends that are taking place in the context of organizational behavior, it should be possible to provide a more integral understanding of how these trends have impacted the General Electric organization at its methods for expansion and development. Further, by examining what has been written about the success of the organization a clear overview of the dynamic interplay between the development of the organization and its internal behavior will be elucidated.…