Submission of “Case 24 Best Buy Co. Inc.: Sustainable Customer Centricity Model?” Abstract Best buy Co. Headquartered in Richfield‚ Minnesota‚ was a specialty retailer of consumer electronics. It operated over 1‚100 stores in the US‚ accounting for 19% of the market. With approximately 155‚000 employees‚ it also operated over 2‚800 stores in Canada‚ Mexico‚ China and Turkey. The company’s subsidiaries included Geek Squad‚ Magnolia Audio Videos‚ and Pacific Sales. In Canada‚ best buy operated
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QUESTIONS 1. Explain the importance of risk adjustment in the capital budgeting allocation process by answering the following questions. a. Explain why risk adjustments are important and how they can affect firm value. Without the correct risk adjustment the firms stock will lose value by taking on high risk projects. The firm could also be considered uncompetitive if they reject low cost/low risk projects. b. Explain how the single hurdle rate currently used by Northern Forest Products can change
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In Ethics Case BYP5-6‚ we are presented with a seemingly harmless accounting issue. Laura McAntee has just been hired as an assistant treasurer for a large retail store. Her new boss used to have her position but has since been promoted to treasurer. While explaining her new duties‚ he has asked her to date checks to pay invoices at a discounted rate‚ but hold on to the checks in order to gain interest on that money. He continues to explain away the practice by saying “everyone does it” and that
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Questions 1. a. Discuss the specific items of capital that should be included in the WACC. b. The comptroller currently finds the weights for the weighted average cost of capital (WACC) from information from the balance sheet shown in Table 2. Compute the book value weights that the comptroller currently uses for the company’s capital structure. c. Based on the suggestion that the focus should be on market values‚ compute the weights of debt‚ preferred stock‚ and common stock. d. Are book
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BEST BUY In 1966‚ Richard Shulze opened a small business in St. Paul‚ Minnesota called Sound of Music. In the next 17 years Shulze’s small store rapidly grew into a multi-million dollar outfit. In 1983‚ Sound of Music changed its name to Best Buy Co.‚ Inc and the first superstore was opened in Burnsville‚ Minnesota. With the new name the store also began carrying more name brands‚ appliances‚ VCRs and offering central service and warehouse distribution. Throughout the nineties Best Buy became
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BEST BUY Page 1 CASE ANALYSIS BEST BUY INC – DUAL BRANDING IN CHINA Q1. What is Best Buy’s competitive advantages in US? Best Buy’s competitive advantages in US includes: customer centricity‚ the SOP system and Geek Squad. Best Buy implements a concept called centricity. Best Buy identifies customers generating most revenue and segment these customers then realigning the stores to meet the needs of these customers. Its market researchers will analyze a lot of sales and demographic data to
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Case Study: 6 – Wal-Mart Case Study: Data Communications at Wal-Mart Case Study: Data Communications At Wal-Mart? There are many things Wal-Mart has done to improve its data communications systems for suppliers. Their chief improvement was the implementation of the sales and inventory data to their suppliers. Suppliers could log in and gain access to all of the sales and inventory data to more efficiently stock Wal-Mart with their products. A key component of data security
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Case Assignments Case 1: An ERP Story 1. What are the project’s main characteristics and challenges identified by Jean Roberge? 2. In your opinion‚ does the project have other characteristics or challenges that Jean Roberge did not identify but should also be taken into account? Case 2: Mrs. Field Cookies 1. Describe and evaluate the role of information technology at Mrs. Fields Cookies in terms of the following: a. IT architecture b. IT and Organization
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Module 6 Case Study Near the end of 2013‚ the management of Simid Sports Co.‚ a manufacturing company‚ prepared the following estimated balance sheet for December 31‚ 2013. To prepare a master budget for January‚ February‚ and March of 2014‚ management has gathered the following information: Simid Sports’ single product is purchased for $30 per unit and resold for $55 per unit. The expected inventory level of 2‚500 units on December 31‚ 2013‚ is more than management’s desired level for 2014 which
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Case Preparation Questions Cola Wars Continue: Coke and Pepsi 1. Why is the soft drink industry so profitable? 2. Compare the economics of the concentrate business to the bottling business: Why is the profitability so different? 3. How has the competition between Coke and Pepsi affected the industry’s profits? 4. Can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-carbonated drinks? Zara: Fast Fashion 1. How specifically
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